Q&A Begins, First Q on Asset Purchases

Q: Question asks whether the new guidance encompasses the current asset purchase base, and asks whether there are any conditions in which they would increase the pace of purchases.

A: We'll continue to increase our security's holdings at least at the current pace over coming months to sustain smooth market functioning and help foster accommodative financial conditions. That latter part is an updating of our guidance to reflect that the purchases are fostering accommodative financial conditions as well.

"In terms of going forward, I would just say this. There are various ways and margins there we can adjust our tools going forward and we'll continue to monitor developments and we're prepared to adjust our plans as appropriate." Powell not giving anything away there!

Follow up Q on why guidance on one but not the other.

A: Powell says "we think our policy stance is appropriate today. And we're prepared to adjust it going forward as we see appropriate. And today, we believe that particularly, this very strong forward guidance, very powerful forward guidance that we've announced today, will provide strong support for the economy."

A nod to the shift from stabilization to accommodation: "We said from the beginning that we would first try to provide some support and stability and relief in the first phase of the crisis, the acute phase, and then we would support the expansion when it came. Well, it's here and it's well along and so that's why we changed our guidance today and we do have the flexibility to do more when we think it's appropriate."