MNI TRANSCRIPT: Powell on Additional Policies

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

Federal Reserve Chairman Jerome Powell's press conference Wednesday:

     Q: I want to follow up on Jeanna's question and ask what specifically do

you think elected officials should consider in order to help return or hasten a

stronger return to full employment and what policy tools did you discuss at your

meeting today that might be used to stop a deflationary spiral?

     A: So let me start, I'll take the questions in the order you gave them. In

terms of, if I can say legislative priorities, we are not responsible for fiscal

policy. Those will be decisions for congress to make. But I would say that

policies that protect workers, businesses and households from avoidable

insolvency that keep businesses going so that they are able to produce goods and

to either hold on to their employees or quickly rehire them, those are going to

be key policies, that will come with a hefty price tag. But we would come out of

this eventually with a stronger economy and with less long run damage to the

economy. That is a key thing that really congress could do over time. In terms

of what we can do, I mentioned we have our credit facilities, are wide open. We

can do more on that front. In addition we have had extensive discussions, as

I've mentioned, done thinking about what monetary policy might look like in

coming months over a range of potential scenarios for the economy. We do think

that our policies stance today is right where it should be for now. We cut rates

to the effective lower bound. We have said that we will keep them there, until

we are confident that the economy has weathered the effects of the outbreak and

is on track to achieve our goals. With asset purchases, we are continuing to

purchase treasury securities and agency MBS in the amounts needed to support

smooth market functioning. We are doing those things. I would say that we will

continue to use our tools as needs be.

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

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