Q&A continues: Q: Why not support labour........>

FED: Q&A continues:

Q: Why not support labour market more?

- A: We have made a substantial shift in policy, and the effects will be felt

over time. [Powell reiterates risks of global growth/trade/low inflation]. Lot

more good can be done in labour market, gains are good, but we have to look at

the whole economy.

Q: How long will balance sheet expansion continue? Are there not enough reserves

in the system?

- A: On how long, we've said bill purchases til Q2 2019. In terms of causes, a

lot of forensic work going on by us and market participants. The minimum level

of reserves that we can have is something like 1.45 trillion or a little higher,

we will be adding reserves to get to that place (in early Sep). Liquidity didn't

flow the way we expected, esp re banks surveyed identifying their minimum level

of reserves. Any adjustments we can make without sacrificing stability etc we

are looking at.