MNI TRANSCRIPT: Powell on Unemployment, What's Left For $454B

     WASHINGTON (MNI) - The following is the portion of a transcript from

Federal Reserve Chairman Jerome Powell's press conference Wednesday:

     Q: Hi, Chairman Powell. I had two questions. I wanted to start on the

unemployment picture, and nail down how you see things going from here, you did

talk about potential loss of skills over time, so are you worried about

structural changes in job markets that would keep unemployment high, and

therefore potentially beyond the ability of the fed to do anything about, which

is something that was debated after the last recession. And eventually of

course, the unemployment rate did go lower than people thought. 

     Second question is just on the money from treasury, the 454 billion, it

sounds like you want to keep that in reserve for programs that have high demand

such as the main street program, are you willing to use that to backstop say a

program that is having more losses, what is your tolerance for loss among that

454 billion? Thank you.

     A: In terms of the labor market, the risk to, of damage to people's skills

and their careers and lives is a function of time to some extent. The longer one

is unemployed the harder it gets, and we probably have all seen this in our

lives, harder it is to get back into the workforce, and get back to where you

were, if you ever do get back to where you were. Longer and deeper downturns

have left more of a mark generally in that dimension with the labor force. So

that is why the urgency in doing what we can to prevent that longer run damage.

It doesn't have to be that way. We won't be able to limit all of it, but we do

have the tools to do what we can to keep people in touch with the labor force

and working, and also out of insolvency too. It doesn't seem fair that people

should lose everything they have including their homes over this. Nonetheless,

there will be some of that. But we do have tools to ameliorate that. 

     In terms of the money, the $454 billion, it's a couple things. First, the

treasury secretary has authority over that, right, and it stands in front of our

losses. So you know, but I do think we are clearly moving into areas where there

is more risk than there has been in the past, and that is okay. I think that is

what we are supposed to do. This is a very unusual time. So but in terms of the

way to think about that money, I think that is really a question for the

treasury department. We set up the facilities and we work very closely and

successfully and collaboratively with the treasury on this. But that particular

aspect of it falls more to the secretary.

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

[TOPICS: MMUFE$,M$U$$$]