MNI TRANSCRIPT: Powell on Policy's Role in Forecasts

     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: I wanted to follow up on fiscal policy you put out your summary of

economic standards. What policy is factored in or not to those projections and

how fiscal policy might do those projections. My other question is on main

street you've mentioned multiple times that the fed and treasury are willing to

expand the PRACHL further. My question is, what's the threshold for those types

of changes? Is it just making sure that borrowers that want to borrow through

the program are able to do that?

     A: In terms of the way we do forecasts is we don't to incorporate things

we're uncertain about. I don't think it would have included substantial, big,

additional fiscal support for the economy. Maybe a modest amount. Something that

looks like a low end guess on what might come out of the current negotiations.

That's what would be in the baseline. Of course, if there's more fiscal support,

you'd see better results sooner. That's a question for Congress, you know? We're

spending a lot, and that's really what they get to decide. In terms of main

Street one thing we look at strongly is nonprofits. Is there a way to

incorporate them into that facility or a similar facility? That's another

dimension. You know, if we had a great idea for changing main street, we would

have done it. We have done some things very positive lately here. As we learn

more, it could be in terms of size. It could be in terms of lots and different

things. I think we have a good product to go to market with now, and I think it

will get out there soon. You know, we're seal, and we'll be willing to continue

to adapt.

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

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