MNI TRANSCRIPT: Powell on Appropriate 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: Mr. Chairman not to make light of it but I am -- can you help me out

with the appropriate understanding of the word appropriate here. So the

statement says that the committee is going to monitor the implications of

incoming information for the outlook as it assesses the appropriate path of the

target range. Na tells me you could go either way. You came in and you use the

word appropriate that the current rate is likely to remain appropriate which

means you are on hold. So how do I walk away from this and what should we walk

away from this believing what appropriate means. Are you on hold and need to be

proved wrongs that you should remain on hold or is it really you could go either

way here?

     A: So we think that the current stance of policy is likely to remain

appropriate as long as incoming information about the ghi is broadly consistent

with our outlook which is a positive one of moderate economic growth, strong

labor market and inflation moving close to 2% and we also say, of course, if

developments emerge that cause material reassessment of that outlook, we would

respond accordingly. So that's really how we are thinking about T. I can't point

to one data point or one thing that would change our minds. Would be a

reassessment of the material reassess many off overall 

     Q: Why isn't phrase likely to remain appropriate in the statement if that's

the sense of the committee.

     A: There is a lot of, you know, practice and science in history in terms of

how much you put in the actual post meeting statement as opposed to what we say

in a press conference statement. It is a judgment call. I'm saying it now.

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

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