Q&A continues: Q: Any more findings on what.....>

FED: Q&A continues:

Q: Any more findings on what went wrong in repo?

- A: Not ready to announce anything at this time; we have done a lot of work.

Learned about minimum level of reserves ($1.5trn). Goal is to allow liquidity to

flow in the system without sacrificing safety and soundness.

Q: Re bill buying as liquidity.

- A: Trying to ensure enough reserves in system so we don't need repo

operations.

Q: MNI's Jean Yung: Would shift avg inflation targeting change policy for that

reason even with no change to econ outlook?

- A: We're comfortable with policy. But over time avg inflation targeting

framework would be different. If it runs below 2% for a time, it has to run

above 2% for a time. Now it's about deviations on either side, but that does not

suggest an intention for it to be specifically symmetric. Over time it would

lead to a different approach to policy.