Q&A continues: Q: How has better than...........>

FED: Q&A continues:

Q: How has better than expected data affected FOMC thinking, impact going

forward?

- A: Every meeting the Fed do a deep dive into US/global data. Some positive,

some negative - overall resilience. More about the downside risks and shortfall

in inflation though. We are going to be monitoring those same things going

forward.

Q: Insurance cut, and not a data-dependent cut? Now watching headlines of trade

talks rather than jobs data etc?

- A: 3 reasons: Insure against downside risks vs global growth etc (which are

having negative impact on US economy), return inflation to 2%. Certainly an

insurance aspect to it. Not a lot of experience in dealing with global trade

tensions. Learning by doing. Not exactly like watching global growth where CBs

ease, fiscal policy eases. With trade tensions, evolve in a different way. We

have to follow them. We play no role whatsoever in evaluating trade policies

other than how they affect the US economy. Not criticising trade policy.