Q&A with Powell begins: Q: Any reason to........>

FED: Q&A with Powell begins:

Q: Any reason to think 25bps cut enough to return inflation to 2% target, and if

not, what is the hurdle to do more?

- A: Don't just look at this cut, but FOMC's actions over the course of the

year. Increasing policy support has kept the outlook favourable. FOMC thinking

about this as a way of adjusting policy to a somewhat more accommodative stance.

This is a mid-cycle adjustment to policy.

Q: What problem lower capital costs will solve?

- A: Economy as close to our objectives as they have been for a long time. We're

seeing downside risks, (i.e. global growth), also inflation is below target.

Threats to a favourable outlook; this action designed to support it and keep

outlook favourable. Evidence is that our policy supports confidence, econ

activity. Rate cut will lower borrowing costs. Since we noted 'vigilance' in

June, we've seen financial conditions/confidence move up.