MNI TRANSCRIPT: Powell on Accommodative Stance of Policy

     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: Wondering if you would categorize the current stance monetary policy as

accommodative or that neutral was lower than we thought at this time last year.

Secondly, you know, we are now two years removed from the tax cuts and jobs act

and the economy is growing at about the same pace it was before 2%. So given you

mention of your fiscal policiant role it plays in supporting long term growth,

you know, is it fair to say that the tax cuts and jobs act worked way it was

supposed to.

     A: Yes. If you look at where the federal funds raised trading it should be

in the middle or mow e lower half of the half. The real rate is probably

modestly below 0. I think my own sense would be that that's somewhat

accommodative policy. I would say though that there is a range of plausibility

estimates of what the neutral rate of interest is and I think many of those who

make such estimates have moved their estimate down over the course of many years

and that process continues. But nonetheless, that seems to me to be very likely

to be in accommodative stance of policy and an appropriate stance given the

situation we are in with continuing downside risks and that I mentioned.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

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