MNI TRANSCRIPT: Powell on Policy Framework; MNI Question

     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: Hi, Jean with MNI. Can you give us an update on the ongoing reassessment

of the inflation framework, and have the discussions this year had any bearing

on todays discussion? 

     A: The monetary policy review is really for -- it's really there to look at

the way we make policy in the longer run. And it's not something that enters

directly into our discussions today. We've -- so far we've had a series of

meetings called Fed Listens at almost all the reserve banks, soon it will be all

the reserve banks. We meet there with the constituencies we serve. They've been

very successful, hearing from people, not just economists, but people who are

not economists, how their lives interact with the Fed's work. It's been great,

I've got to say. It's been even better than I hoped it would be. We're just now

beginning the process of incorporating all of that feedback. And we're going to

be having a series of meetings, beginning today and yesterday, as we evaluate

the questions that we're asking about our frameworks. It's very early to say

where that's going. But we're setting the table now and looking at what our

framework is and how it's performed, looking at how all framework performed

around the world during that global financial crisis. I expect we'll be at this

a while. I'm very excited about it. I think it's been a good exercise. I think

it's opened us up to sunlight and perspectives that we might not have gotten

otherwise. 

     It's a good time. Ten years after the crisis you're living in a new normal

for the economy and monetary policy. It's a good time to step back and ask

whether there's some things that we can do to improve our framework.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

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