MNI TRANSCRIPT: Powell on Framework Review

     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: Hi, Jean Yung with MNI. I wanted to ask about the framework review

again. Would a shift of focus to inflation over an average period, would that

call for a different policy stance if you made that shift? And whether or not we

know the answer to that question, would the Fed consider changing the stance of

monetary policy for that reason even if there was no change to the economic

outlook?

     A: Well, as you know we're comfortable with our current policy stance and

we think it's appropriate, we think it will remain appropriate as long as data

coming in are broadly in keeping with our outlook. Over time, over time though,

let me take a step back. Over time an average inflation targeting framework

would be different than a current framework in a sense that it wouldn't be --

there would be some aspect of trying to make inflation average 2% over time,

which means if it runs below 2% for a time, it has to run above to bring the

average up, so that's a different framework. Our current framework is one where

we say we would be equally concerned with deviations of inflation from a target

on either side, but that doesn't suggest an intention specifically to have those

deviations be symmetric. In other words, consistent with that would be having

all the deviations be on one side, which is what we've had, actually. So I think

it is a change in framework and over time it would lead to a different approach

to policy. Again, I'm not trying to -- I don't want to comment on the current

stance of policy, which we do think is appropriate.

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

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