Powell continues: - Funding market pressures....>

FED: Powell continues:

- Funding market pressures have no implications on monetary policy. Temporary

factors at play. Says expects EFFR to move back within target range. Will

continue to monitor market developments. Will over time provide sufficient

supply of reserves.

- Opening statement concludes, Q&A begins.

- First Q on Mid-Cycle adjustment.

A: We see a favourable economic outlook. That view is consistent with many other

forecasters. As you can see, FOMC members feel that goals can be accomplished

with modest adjustments of Fed funds. Points again to 1995 and 1998. But as

statement highlights, if downside risks emerge, a more extensive series of rate

cuts may be appropriate. In other words, 'we will continue to monitor....'