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Q&A cont. Q: With one or two more cuts,.........>

FED
FED: Q&A cont.
Q: With one or two more cuts, you'll be done and policy bias comes out of
statement?
- A: Going to depend on evolving data, risk picture. What we see now is moving
policy to a somewhat more accommodative stance.
Q: You talked about those left behind by expansion, how will rate cut help them?
- A: Best thing we can do is keep it going, over-arching goal of this move and
all our moves. Inflation not troublingly high; no sector that is booming that
might bust; well-balanced economy. Engine is the consumer economy;
manufacturing/investment not growing much, we hope to help that.
Q: President has called for this rate cut and end balance sheet runoff...so? And
elaborate on runoff?
- A: Gave our reasons for doing this (Powell repeats previous words. Sounds
testy!) We never take into account political considerations. We also don't
conduct MonPol to prove our independence. In the end we'll live with the results
of using our tools. Re balance sheet, did it for simplicity and consistency.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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