MNI TRANSCRIPT: Powell on Impact of China Trade Negotiations

     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: what would you imagine the economic effect would be if negotiations with

China were to fall apart, and how would the fed be able to support the economy

in that event?

     A: I wouldn't want to speculate on a hypothetical. I would say, we will

have to say. We look at a range of factors and as I've said, we look through the

volatility in trade news and trade negotiations, we try not to react. We can't

react. Monetary policy is not the right tool to react in the very short term to

volatility and things that can change back and forth as has happened, as is

probably typical of a large complex negotiation. In terms of, again, I don't

want to get into hypothetical outcomes, I hope that's all right.

     Q: I'm wondering, you met with the President last month. Did you have any

advice for him when it came to this, and did you express some concerns about

potential volatility and the impact of the economy, given all this?

     A: I'm going to stick with my predecessor's long time practice of not

discussing private meetings with elected officials or other officials really,

but thank you.

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

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