Q&A cont. Q: When we have our new recession,....>

FED: Q&A cont.

Q: When we have our new recession, Fed will have less room to manoeuvre. How big

a problem?

- A: Questions the premise of recession. In other cycles, Fed wound up raising

rates again following a mid-cycle adjustment. Don't know that we'll have less

ammo. You assume rates will never go back up. I don't think in principle that's

right. By extending the cycle, you have a lot of benefits to that. In downturn,

we will use all of our tools aggressively.

Q: (From MNI's Jean Yung): Update on Monetary Policy review and impact on

current policy?

A: Long-term process, no impact on decision today. Fed Speaks events have been

great. Just now beginning process of feedback, and having series of meetings

(beginning with this FOMC) on framework. Will be at this a while. Has been a

good exercise, has opened us up to 'sunlight and perspectives we hadn't heard

before'. We're in a new normal, good time to step back and look at framework.