Q&A continues: - Q: What gives confidence.......>

FED: Q&A continues:

- Q: What gives confidence that Fed has tools to get inflation up?

A: Empirical relationship between resource utilization and inflation, though

this has been weak. Using tools best we can to meet the challenge.

- Q: Re policy framework: If inflation doesn't materialise, would change make a

difference in achieving inflation target?

A: Saying something won't do it, have to act. Framework review designed to

increase credibility of the target. Infl expectations anchored about their 25-yr

average, a few ticks below 2%.

- Q: Will USMCA signing reduce uncertainty? Is China or USMCA bigger

uncertainty?

A: I did see news that there is a vote. Not our job to evaluate. Will say that

if it were enacted it would certainly reduce uncertainty. Would say same thing

about negotiations with China which have not reached that point yet. One thing

to look at: negotiations with China have been moving financial markets more than

USMCA.