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Q: Elizabeth Warren has proposed devaluing......>

FED
FED: Q: Elizabeth Warren has proposed devaluing the dollar, Trump has complained
about dollar strength. Overvalued dollar has been a drag on int'l
competitiveness?
A: Treasury has responsibility for the dollar. No comment on level of the
dollar. We don't target the dollar. (Usual boilerplate statement).
Q: If most likely case is that there are rate cuts ahead, what would have been
the downside to cutting rates now?
A: There was not much support for cutting rates at this meeting. Felt it would
be better to get a better picture of things first. Ultimately, question is
whether these risks impact the outlook.
Q: How reconcile conflicting economic data coming in (some strong, some weak)?
A: It's a complicated picture. We look at all of it. The big pieces are this:
the baseline outlook has been a good one (repeats positive consumer comments).
Weakness is manufacturing investment and trade. Global issue. Cites China
deleveraging; uncertainty over supply chains; Boeing issue; lower oil prices.
Not any one thing that explains it all. Globally, services > manufacturing.

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