Q: SEP doesn't suggest long-term damage in......>

FED: Q: SEP doesn't suggest long-term damage in unemployment. What kind of data

are you using to gauge potential for long-term hits to the economy?

- A: Risk to productive capacity of the economy, eg extended unemployment and

workers getting out of touch with skills they need. A shock like this is like a

natural disaster. We don't want perfectly good businesses going out of business

permanently when there was no reason for it.

- We didn't change our L-R est of potential growth and of the unemp rate and I

didn't change mine (forecast) because I think we can avoid most of that even. I

think it's way too early to be changing these. Not meant to short run numbers,

they're longer run assessments.