Q&A continues: Q: What would Fed be willing.....>

FED: Q&A continues:

Q: What would Fed be willing to do to anchor inflation expectations?

- A: Inflation expectations important to our framework. Part of our framework

review includes changes that would be more supportive of achieving symmetric 2%

target. Too early to announce, but thinking of ways of making that target more

credible. Comes down to using policy tools to achieve it, and that's the thing

that must happen to be credible. Framework reviews don't happen quickly, wrapped

up around middle of next year.

Q: How big of a change would China-US and USMCA deals be in terms of rate hikes

next year?

- A: If we were to have a sustained reduction in trade uncertainties, that would

bode well for business sentiment, and ultimately could affect activity. Wouldn't

expect impact would be immediate on activity, would take some time, but do think

it would be quite positive over time. Re raising rates, we just touched 2% core

inflation for a few months and we've fallen back, I think we would need to see a

real move up in inflation and persistent before raising rates.