MNI TRANSCRIPT: Powell on Monetary Policy Tools

     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: The Fed in your fellow central banks have been sort of exploring the far

reaches of what's possible for monetary policy.  Even going so far as to make

rates negative in some cases, with mixed results, meanwhile... fiscal and

regulatory, not to mention, trade policy, are pursuing their own separate

courses.  As you and your colleagues do this monetary policy, framework review,

do you ever consider limitations of monetary policy?  Should you be more

explicit about what monetary policy can and cannot do in this environment?

     A: You know... we try to be clear about that.  But... really, I think...

our job is to use our tools as best we can to achieve, you know, to do the jobs

that Congress has assigned us.  Which is achieve maximum employment and stable

prices.  That's our real job.  In terms of giving the fiscal authorities, who,

by the way, are the ones who created us, advice about how to do their job, we

keep that at a high level, I think.  And... at a high level, yes... I would say,

and I've said before... that it's really fiscal policy that is more powerful and

that has much more to do with fiscal policy can do those things that will

increase the longer-run growth rate of the United States by improving

productivity and labor force participation and the skills and aptitudes of

workers.  All of that comes from the private sector, but also from more the

kinds of things that can be done with fiscal policy. 

     Over the long run, we, we can't really affect the growth rate of the United

States, the potential growth rate of the United States isn't a function of

monetary policy.  It's a function of other things.  So... I try to be clear

about that and... so... but... ultimately... fiscal -- fiscal authorities will

do what they deem appropriate. 

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

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