MNI TRANSCRIPT: Powell on XXXXX

     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: You mentioned trade policy being a complex, ongoing discussion, what is

your rule for stopping, as far as interest rate cuts go... you referred to this

mid-cycle adjustment... the median suggests no more rate cuts, but if we get

continued back and forth, between the U.S. and China, trade policy uncertainty's

going to remain heightened, so... you know... under what circumstances would you

say, you know, I think we cut enough, we stop now. 

     And secondly, as leader of this institution... have you felt a need to take

steps to boost employee morale at a time when the president is constantly

criticizing The Fed?  Thanks.  

     A: You know... I'd love to be able to articulate a simple, straightforward,

stopping rule, but it'll be when we think we've done enough and our eyes are

open, we're watching the situation, cut rates twice.  We moved, really through

the course of this year, as I discussed and... you know... we see ourselves as,

as taking actions to sustain the expansion and... thereby, achieve our goals.  

   And... if you look at sort of things that are happening in the economy, I

think, I personally see a high value in sustaining the expansion, because... we

really are reaching the, the -- this positive economy is reaching communities

that haven't been reached in a long time.  There'd be great benefit in having

that last as long as possible, that's all.  

   So... I don't have a specific stopping point for you, but... I think we're

watching carefully and there'll come a time, I suspect, when we think we've done

enough.  There'll be a time when the economy worsens and we'd have to cut more

aggressively.  We don't know, we'll be watching things carefully.  The incoming

data and evolving situation, and... that's what's going to guide our guidance on

that path.  

     In terms of the morale of the institution, I'd say it's very high, we're

unified, we feel like we're doing the best job we can, serving the American

people. 

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

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