Q&A cont. Q: Re dissenters, what was your.......>

FED: Q&A cont.

Q: Re dissenters, what was your response to their (likely) financial stability

concerns?

- A: Don't see financial stability concerns as a reason not to take today's

action. Now we have a framework. Do see notable valuation pressures in some

markets but not too high. Leverage/funding risk low, households in good shape.

High level of resilience in the financial system. Gives us the ability to use

MonPol for its purposes, and use supervisory/regulatory tools to keep system

resilient.

Q: Markets have priced in a series of rate cuts. Is this your effort to damp

down that thinking?

- A: Not beginning of long series of rate cuts. Didn't say just one rate cut.

(Distinguishes between now and what Fed does during recessions.)