Q&A begins: Q: Policy now accommodative.........>

FED: Q&A begins:

Q: Policy now accommodative enough? What kind of change in economy would cause

to reassess?

- A: Appropriate as long as incoming info about the economy remains consistent

with our expectations. Household sector strong, resilient. Manufacturing weaker.

Outlook is for more of the same (moderate growth, inflation moving to 2%, etc).

Risks to outlook have moved in a more positive direction. Policy in a good

position for outlook described. If factors cause a material reassessment of our

outlook, we would act accordingly.

Q: Risks moving to a positive direction? Can you Clarify?

- A: Risks we have been monitoring are global growth, trade developments. Phase

1 deal with China, could bode well for business confidence and perhaps activity.

It appears the risk of a no-deal Brexit has declined. Plenty of risks left, but

have subsided. Business investment has been weak, broad across equipment and

other parts of fixed investment, consistent with what we've seen - but that's

the economy we've had this year, with consumer driving growth.