Powell Excerpt: Powell On Inflation

     WASHINGTON (MN) - Powell: As I mentioned, we think that our policy stance

is appropriate at the moment.  And we don't see a strong case for moving in

either direction.  I would point out that two, inflation actually ran, including

core inflation actually ran pretty close to 2 percent for much of 2018.  As you

point out, both head line and core, though, did come in on the soft side in the

first quarter and that was not expected as it relates to core.

So, we say in our statement of longer run goals and monetary policy that the

committee would be concerned if innation were running persistently above 4

percent.  And in this case, as we look at these readings in the first quarter

for core, we do see good reasons to think that some or all of the unexpected

decrease may wind up being transient.  I point to things like portfolio

management services, apparel prices, and other things in addition to trimmed

mean numbers of inflation did not go down as much.  Indeed, Dallas trimmed mean

is up 2 percent.

If we did see inflation running persistently below, that is something the

committee would be concerned about and something we would take into account

setting policy.

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

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