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     WASHINGTON (MNI) - The following is the portion of a transcript from
Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting
     Q: In terms of the review on Chris' question earlier, there was a general
feeling now in the markets and among analysts that you're basically setting us
up for some form of inflation target averaging where you let the inflation rate
run above the 2% target for some time to make up for the time that it is spent
below that. Is that a fair or reasonable assessment of where you think you're
going to end up? What would you, Chairman Powell, think of that idea personally
and as long as I'm asking, do you have any more details on when we can expect
the results of the review?
     A: I'll just say that we undertook the review because we felt and I felt
that it was time to incorporate the realities of what we could call the new
normal into our policy framework, and some aspects of that new normal would
include ongoing powerful, global disinflationary trends which have led to lower
than target inflation many places in the world. Secondly, a flat Phillips curve
by which I means low levels of sensitivity of inflation to resource utilization,
for example, low unemployment. And thirdly, a much lower neutral real interest
rate here and around the world. So, those are challenging conditions for
monetary policy to deliver on our statutory goals of maximum employment and
stable prices; although, I would say that under our existing framework, we've
been able to succeed or get close to succeeding most of the time lately to
achieve those goals, although we do struggle as other central banks do with the
inflation goal. So this is about reviewing our strategy, tools, and
communications to assure that they're the best that we can do to achieve those
goals in this environment on a sustained basis. And we continued our discussions
at this meeting. I'm very, very pleased at the process so far. It's included the
14Fed Listen events around the country which we engaged with a full range of
people and groups across American Society and this was a very, very positive
experience and I think we learned a lot. We now had a series of a number of FOMC
meetings where we reviewed what we learned and dug into strategies and I expect
to conclude the review and announce the conclusions around the middle of the
year. Right now we're just at the point of coming together to put all of that
together, so I think I'm not the person who should be telling you my personal
preferences right now. I'm trying to, and we're trying to come together as a
group around a set of answers. I feel very positive that we're going to come up
with some good results and I'm just going to have to wait until we get to that
point to announce them.
--MNI Washington Bureau; +86 (10) 8532-5998; email:

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