Q&A continues: Q: Would you characterise........>

FED: Q&A continues:

Q: Would you characterise current monpol as accommodative, or is it just that

neutral is lower than we thought it was a year ago? Re fiscal policy, is it fair

to say that tax cuts worked the way they were supposed to?

- A: If you look at Fed funds, real rate modestly below 0%, that's somewhat

accommodative policy. But there is a range of plausible estimates of neutral,

and many have moved their estimates down. But this is very likely to be

accommodative and appropriate.

Q: MNI's Jean Yung: Are you concerned about financial stability risks?

- A: We monitor those risks all the time. Currently we don't see large

imbalances. We have a four-part framework: leverage in non-financial sector is

the fourth. With households we see them in very good shape in the aggregate;

that leaves businesses. Leverage in corporations is historically high, we have

been monitoring and taking appropriate steps. Corporate debt one part of a

larger part of our framework, something we're paying quite a bit of attention

to, and taking appropriate action.