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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$$$]

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