MNI TRANSCRIPT: Powell: Virus Requires Multifaceted Response

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

Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting

Tuesday:

     Q: Can you take us through the reasoning behind the rate cut a little more

in depth? Was there a, some say this is supply side shock, rate cuts are not

particularly suitable for this, others say the supply shock may be due to demand

shock. I wonder if you can give us more depth on the reasoning behind the rate

cut.

     A: Sure, I'd be glad to. The virus outbreak is something that will require

a multi faceted response. That response will come in the first instance from

healthcare professionals and health policy experts. It will also come from

fiscal authorities, should they determine that a response is appropriate. It can

come from many other public and private sector actors, businesses, schools,

state and local governments. We do recognize a rate cut will not reduce the rate

of infection, it won't fix a broken supply chain. We get that. We don't think we

have all the answers. But we do believe that our action will provide a

meaningful boost to the economy. More specifically, it will support accommodated

financial conditions and avoid a tightening of financial conditions which can

weigh on activity and will help boost household and business confidence. That is

why you are seeing central banks around the world responding as they see

appropriate in their particular institutional context.

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

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