MNI TRANSCRIPT: Powell on Trade Developments

     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 think you said chair Powell that the primary positive development in

risk to the outlook was on trade. And specifically the prospects for phase 1

agreement with China. Ups and downs of the trade dispute and that several truces

and tentative deals have fallen through, are you concerned about developing

monetary policy guidance through -- that's dependent on good part on the wins of

the trade negotiations.

     A: I would not characterize it. I noted it may be that there has been

progress there towards a way -- away from bad outcomes and confrontational

outcomes. I didn't say we are baking it in. As with Brexit it is still uncertain

what will be the result of the election but I would say the tail risk of a

unnegotiated no deal Brexit seems to have decreased. Just as I would say the --

that the situation in our trade negotiations with China seems to have sustain a

step closer to resolution. That's all I'm saying.

     Q: Phase 1 agreement and doesn't work out we be back at making, you know,

monetary policy --

     A: That's one factor among many, many factors that factor in to our

assessment of outlook and if we have -- if we -- if things happen that cause us

to materially reassess the outlook, change our assessment of the outlook in a

material way, then we would act accordingly.

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

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