MNI TRANSCRIPT: Powell on Mid-Cycle Adjustment

     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: Mr. Chairman, when you cut rates in July, you characterized it as a

mid-cycle adjustment, is that still your view of what's happening?

     A: So... as you can see from our, from our policy statement, from the SEP,

we see a favorable economic outlook, with continued moderate growth, strong

labor market and inflation near our 2% objective. By the way, that view is

consistent with those of many other forecasters. As you can see, FOMC

participants generally think these positive economic outcomes will be achieved

with modest adjustments to the federal funds rate. At the last press conference

I appointed to two episodes in 1995 and 1998 as examples of such an approach

which was successful in both of those instances. As our statement also

highlights, though there, are risks to this positive outlook through weak global

growth and trade developments. If the economy does turn down, then a more

extensive sequence of rate cuts could be appropriate. We don't see that, it's

not what we expect, but... we would certainly follow that path, if it became

appropriate. In other words... as we say in our statement, we will continue to

monitor these developments closely and we'll act as appropriate to help ensure

the expansion remains on track.

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

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