MNI TRANSCRIPT: Powell on Asset Bubble Risk, Wealth Inequality

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

Federal Reserve Chairman Jerome Powell's press conference on Wednesday:

     Q: I came across a statistic the other day that amazing me. Since the March

23rd emergency announcement, every single stock in the S&P 500 has delivered a

positive return. I'm wondering, given the levels of the market right now,

whether you or your colleagues feel there is a possible bubble blowing that

could pop and set back the recovery significantly, or that we might see capital

misallocation that would leave us worse off when this is over? Second default is

about ranges and wealth and target the markets after the great financial crisis,

that the fed did contradict to wealth inequality in in country. Is there any

some 2003ing or message you could give that will affect that?

     A: What we targeted is broaden [indiscernible] conditions. If you look back

to the months of February and early March, you had basically the world markets

realizing at the same time. I remember that Monday there was a global pandemic,

and that this possibility it would be contained in one PROV Yens for China was

not going to happen. It was Iran, Italy, Korea, and it become clear investors

everywhere in the world for a ERD of weeks wanted to sell everything that wasn't

cash or a short-term treasury instrument. They didn't want risk at all and

markets stopped working, and companies couldn't borrow and couldn't roll over

their debt. Peel come borrow. That's the kind of situation that can be --

financial turbulence and malfunction, the financial system not working can

greatly amplify the next active effects of what was a major economic shock. What

our tools were put to work to do is restore the markets to function. I think

some of that has happened as I mention upped in my opening remarks...

[Indiscernible section.] We want the market to be working, and we're not looking

to [indiscernible] level. I think our principle focus, though, is on the state

of the economy and on the labor market and our inflation. Inflation is, of

course, low, and we think it's likely to remain low below the target. It's

getting the labor market back and in shape. That's you're greatest focus. If we

were to hold back, we would never do this. The idea and concept that we would

hold back because we think asset prices are too high, others may not think so.

We just decided that was the case, what would happen to the people actually

serving? We're supposed to pursue maximum employment at stable prices, and

that's what we're pure sighing. Pursuing financial security. We have a banking

system so many UCH stronger and better at manages risks and mother liquid. You

have all those things and they've been lending and taking in deposits and a

source of strength in this situation. So I would say that even if we're tightly

focused on [indiscernible] real economy goals and we're not focused on moving

asset prices in a particular [indiscernible], we want markets to be working and

I think they're working. You know, we hope that continues.

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

[TOPICS: MMUFE$,M$U$$$]