MNI TRANSCRIPT: Powell on Data Dependency

     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: In your own view, the data is, to some extent, lagged, special with

risks on the horizon. The markets obviously think these risks could materialize

more than what you and your colleagues are projecting in the dot plot today.

Where are your own views about the tension between risk management, which imply

some degree of data independence and this idea of being data-dependent?

     A: Yeah... so... I'll try to get at it this way. I think that the idea that

we see trouble approaching on the horizon, you steer away from it, if you can. I

think that's a good idea, in principle. I think history teaches us that it's

better to be proactive in adjusting the policy if you can. I think... applying

that principle in a situation -- in a particular situation is, is where it --

the challenge comes. So... I told you where the bulk of the committee is going,

meeting by meeting. I think the main take away is that this is a committee that

has shifted its policy stance, repeatedly, consistently, through the course of

the year. To support economic activity as it is felt that is appropriate. The

beginning of the year... we were looking at further rate increases, then we were

patient and we cut once and we cut again and... I think you've seen us being

willing to move based on data, based on the evolving risk picture. I have no

reason to think that will change, but it will continue to be data-dependent and

data includes the evolving risk picture. That's where I am and where I think the

bulk of the committee is.

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

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