MNI TRANSCRIPT: Powell on Lending Facilities

     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: We saw 55 companies file for bankruptcy. Do you think it's too late,

first of all? Second of all, the future of these facilities, is this a one-year

impact on the economy through these facilities or is this a multiple year, and

if so, how many years?

     A: We have significant interest, we think, and also remember, lots and lots

of companies get financed, too. The banking are lending and the markets are

open. You have a much better lending climate than certainly we had in February

and March. We don't think it's too late, though, and we expect it to be up quite

soon. In terms of timing of these things, we leave them open for new loans as

long as they need to. That's a decision we make, of course, with our colleagues

at the treasury department. At a certain point there won't be a need for further

loans, and then the assets will be there. So I don't know if that's parts of

your question, too. I would say although that point the useful role of the

Federal Reserve is close to an end at that point. We don't have any expertise in

managing pools of credit assets, loans, if you will, or bonds. We don't want to

be part of the decisions made to manage such a portfolio. We would be looking to

have that done either some place else or, you know, by a third-party or at the

treasury department or something. We're working on ideas for that. Our real

focus is getting the facilities going and getting them to do the job they need

to do.

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

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