MNI TRANSCRIPT: Fed to Vote on "New Part" of Volker Rule

     WASHINGTON (MNI) - The following is the portion of a transcript from

Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting

Wednesday:

     Q: Is the Fed going to vote on changes to the Volker rule in banks

investing in venture capital funds and what can you tell us about what the Fed

is considering and why make those changes?

     A: Sure, so we will be looking tomorrow and voting on a new part of the

existing Volker Rule and that is the covered fund provisions of the rule and

we'll be making a bunch of provisions that we believe are faithful to both the

letter and the spirit of the law. We're going to put those proposals out for

public discussion, and we're going to listen carefully as we always do to public

comments on those proposals. Again, we believe that they will be, and you'll see

them tomorrow, it will be public. I think we have a Board Meeting tomorrow to do

that.

     Q: Is this just the venture capital funds or are you also changing rules

for hedge fun and private equity funds.

     A: It's covered funds. It's not the proprietary trading part of the Volker

but covered funds part.

     Q: Is there a chance banks could take it and run and maybe get involved in

mortgage backed securities again and risk investments?

     A: You know, we think that what we're doing is very consistent with safety

and soundness and absolutely consistent with the letter and spirit of the Volker

Rule. We'll be getting comments from people and looking into that question and

many others.

--MNI Washington Bureau; +86 (10) 8532-5998; email: ryan.hauser@marketnews.com

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