MNI TRANSCRIPT: Powell on Overall Economy

     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: Can you give us more texture on what the strongest or most important

base is for feeling that you have now taken out adequate insurance. Is the

response you are seeing in housing and other parts of the economy arguably to

the cuts made so far. Is it the fact that the risk environment out there

globally is shifted a bit and abated a bit? Or is it something different in the

financial markets the fact that the yield curve has righted itself?

     A: Honestly there isn't one factor. It is the whole range of economic data

and also what we see as about our stance of policy which we believe is the

appropriate stance. It is really both of those things. If you look at the

performance of the economy through this, the consumer sector has been quite

resilient. Witnessed today's GDP report. And it is just again all -- all the

things that I went through earlier suggest that sector continues to be strong.

We know that the manufacturing investment trade export sector is -- has been

weak. That continues but nonetheless overall we have an economy that is showing

moderate growth and we think that today's say we are not 1.5 to 1.75%, that we

believe is accommodative level and a level that will support that outlook that

we have.

     Q: Follow-up, that this is kind of a one legged recovery, that unless you

get some impetus from other things, exports, investment that it is going to

weaken further at some point?

     A: We don't see any evidence of that. What we see is the that the consumer

sector continues strong again low initial claims. It is all -- the day we

monitor very broad range of data. We also see now I think more clearly the

affects of more accommodative monetary policy on various kinds of consumer

activity. You are seeing strong durable goods sales and seeing housing now

contributing to growth for the first time in awhile. Two tenths I think this

quarter and you are seeing -- you are seeing retail sales. Retail sales number,

PCE number as I mentioned in today' release is 2.9%. More broadly money tore

policy is supporting household spending and home buying by keeping the labor

market strong and worker's income rising and consumer confidence at high levels

where it currently is.

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

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