Q: 'Dot plot deflation' by telling people not...>

FED: Q: 'Dot plot deflation' by telling people not to buy a car now because

rates are going down? Expected inflation weak, undermining credibility on

inflation target?

A: On inflation question - reiterates that FOMC noted that expectations have

dropped, also that forecast for 2019 inflation in SEP has fallen. Inflation is

something I've been concerned about for quite a long time, which is why I called

for the review. We don't want to be seen to be weak. On first question re Dot

Plot deflation: We're working our way through it. Dots provide useful

information but they are not a collective forecast of the group and they are the

most likely case (the usual boilerplate on this topic from Powell).

Q: If FOMC cuts, will it be 25 or 50bps? Discussed?

A: We haven't really engaged with yet. More generally, in a world where you are

close to effective lower bound, wise to react to prevent a weakening from

becoming a more profound weakening. Size of cut will depend on data and risks.