Powell Excerpt: Outlook Still Positive For 2019

     WASHINGTON (MN) - The following is a response of Federal Reserve Chairman

Jerome Powell to a question from a reporter at his press conference following

Wednesday's Federal Open Market Committee meeting.

Question: Hi, Lawrence Fox Business Network. Thank you, Mr. Chairman.  We have

seen enormous volatility in the economy.  When do you think these pauses need to

come in next year?  Do we need to keep this gradual?  And then in addition, what

data are you specifically looking at for you, that shows when the Federal

Reserve starts to become that headwind in the economy with the rates?

Powell: You know, we are watching -- we have a strong forecast, generally for

next year.  That includes growth of 2 to 2.5%, and it includes growth at a

strong enough level to continue driving unemployment down and inflation near 2%.

 That's a pretty positive forecast.  So to make further moves, I will be looking

for data that suggests that that's, in fact, the path that we are on.  As I

mentioned, once you -- once you are broadly speaking in the range of neutral, I

think -- I think it's appropriate to be putting aside individual estimates of

that, and be looking at what the incoming data are telling you about the

outlook, updating your estimates of what neutral might be, of what the natural

rate of unemployment might be, of the state of the economy and letting that lead

you to adjust your outlook and therefore your appropriate path for policy. So

that's what we mean when we say we are data dependent.  Of course, we are always

data dependent but I think there's particular meeting in that context which is

that.

--MNI Washington Bureau; +1 (973) 494-2611; email: harrison.clarke@marketnews.com

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