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BRIEF-News alerts from Fed Chair Powell Sept 16 press conference

17 Sep 2020 / 03:42 H.

    Sept 16 (Reuters) -

    * FED CHAIR JEROME POWELL STARTS PRESS CONFERENCE

    * POWELL SAYS FED IS STRONGLY COMMITTED TO ACHIEVING GOALS OF MAXIMUM EMPLOYMENT AND PRICE STABILITY

    * POWELL SAYS FOMC MEMBERS HAD IMPORTANT CHANGES TO POLICY STATEMENT

    * POWELL SAYS HOUSEHOLD SPENDING LOOKS TO HAVE RECOVERED ABOUT 75% OF ITS DECLINE

    * POWELL SAYS ECONOMIC ACTIVITY HAS PICKED UP FROM DEPRESSED Q2 LEVEL AND HOUSEHOLD SPENDING HAS RECOVERED THREE QUARTERS OF EARLIER DECLINE

    * POWELL SAYS SEEING SIGNS OF IMPROVEMENT IN BUSINESS INVESTMENT

    * POWELL SAYS SAYS WILL NOT LOSE SIGHT OF THE MILLIONS STILL OUT OF WORK

    * POWELL SAYS OVERALL ECONOMIC ACTIVITY REMAINS WELL BELOW PRE PANDEMIC LEVELS AND PATH REMAINS UNCERTAIN

    * POWELL SAYS PANDEMIC HAS LEFT SIGNIFICANT IMPRINT ON INFLATION

    * POWELL SAYS WEAKER DEMAND IN SECTORS AFFECTED BY THE PANDEMIC HAS HELD DOWN CONSUMER PRICES AND INFLATION IS RUNNING BELOW FED'S OBJECTIVE

    * POWELL SAYS DESPITE HIGHER PRICES FOR SOME CONSUMER GOODS, OVERALL INFLATION REMAINS SUBDUED

    * POWELL SAYS OUTLOOK FOR THE ECONOMY IS EXTRAORDINARILY UNCERTAIN

    * POWELL SAYS FULL ECONOMIC RECOVERY IS UNLIKELY UNTIL PEOPLE ARE CONFIDENT IT IS SAFE TO ENGAGE IN ACTIVITIES

    * POWELL SAYS PATH FORWARD ALSO DEPENDS ON POLICY ACTIONS TAKEN BY ALL PARTS OF GOVERNMENT

    * POWELL SAYS REMAINS COMMITTED TO USING FULL RANGE OF TOOLS

    * POWELL SAYS FED REMAINS COMMITTED TO USING FULL RANGE OF TOOLS TO SUPPORT THE ECONOMY IN THIS CHALLENGING TIME

    * POWELL SAYS WE VIEW MAX EMPLOYMENT AS A BROAD-BASED AND INCLUSIVE GOAL

    * POWELL SAYS FED DOES NOT SEE A HIGH LEVEL OF EMPLOYMENT AS A POLICY CONCERN

    * POWELL SAYS FED WILL AIM TO ACHIEVE INFLATION MODERATELY ABOVE 2% FOR SOME TIME

    * POWELL SAYS WE EXPECT TO MAINTAIN ASSET PURCHASES AT AT LEAST THE CURRENT PACE

    * POWELL SAYS FED IS PREPARED TO ADJUST MONETARY STANCE AS APPROPRIATE IF RISKS EMERGE THAT WILL IMPEDE ITS GOALS

    * POWELL SAYS EMERGENCY TOOLS WILL GO BACK IN TOOL BOX AFTER CRISIS HAS PASSED

    * POWELL SAYS FISCAL ACTIONS TAKEN THUS FAR HAVE MADE CRITICAL DIFFERENCE

    * POWELL SAYS DIRECT FISCAL SUPPORT MAY BE NEEDED AND IT WILL TAKE A WHILE TO GET BACK TO LEVELS OF ECONOMIC ACTIVITY AND EMPLOYMENT THAT PREVAILED BEFORE PANDEMIC

    * POWELL SAYS MAY TAKE CONTINUED SUPPORT FROM BOTH MONETARY AND FISCAL POLICY TO ACHIEVE FULL RECOVERY

    * ASKED ABOUT ASSET PURCHASES, POWELL SAYS THEY HAVE RESTORED MARKET FUNCTIONING AND FOSTERED MORE ACCOMMODATIVE FINANCIAL CONDITIONS

    * ASKED ABOUT CHANGING PACE OF ASSET PURCHASES, POWELL SAYS BELIEVES CURRENT POLICY STANCE IS APPROPRIATE BUT HAVE FLEXIBILITY TO DO MORE WHEN APPROPRIATE

    * ASKED ABOUT FINANCIAL STABILITY, POWELL SAYS MONETARY POLICY IS NOT THE FIRST LINE OF DEFENSE TO MAINTAIN STABILITY

    * POWELL SAYS MONETARY POLICY IS NOT THE FIRST LINE OF DEFENSE ON FINANCIAL STABILITY, POINTING TO REGULATION, STRESS TESTING AND MACROPRUDENTIAL TOOLS

    * ASKED ABOUT FOMC PROJECTIONS OF NO INFLATION ABOVE 2 PERCENT, POWELL SAYS DOES NOT SEE ANY CONFLICT WITH FOMC GUIDANCE

    * ASKED ABOUT INFLATION POWELL SAYS GUIDANCE FROM POLICYMAKERS SHOWS CONFIDENCE IN ABILITY TO REACH 2% GOAL

    * POWELL SAYS EXPECTS ECONOMY TO RECOVER QUICKLY NOW BUT EXPECTS SLACK IN THE ECONOMY LATER WILL PUT DOWNWARD PRESSURE ON INFLATION

    * POWELL SAYS WE THINK OUR GUIDANCE IS POWERFUL AND WILL HELP AFFECT THAT OUTCOME

    * POWELL SAYS POLICYMAKERS EXPECT IT WILL TAKE SOME TIME FOR FED TO REACH 2% GOAL WITH SLACK IN THE ECONOMY PUTTING DOWNWARD PRESSURE ON INFLATION

    * POWELL SAYS YOU WOULD EXPECT THE PACE OF IMPROVEMENT TO BE FASTEST IN THE EARLY STAGES OF RECOVERY

    * POWELL SAYS FED OFFICIALS EXPECT RATE OF ECONOMIC GROWTH WILL BE FAST IN THE BEGINNING AND THEN SLOW DOWN TO A MORE NORMAL PACE

    * ASKED ABOUT FISCAL POLICY RESPONSE, POWELL SAYS THERE'S BEEN A REALLY POSITIVE EFFECT BUT MORE IS LIKELY TO BE NEEDED

    * POWELL SAYS 11 MILLION UNEMPLOYED AMERICANS MAY NEED MORE SUPPORT AS THEY FIND THEIR WAY TO NEW JOBS

    * POWELL SAYS MANY STATE AND LOCAL GOVERNMENTS DEALING WITH REVENUE DROPS

    * ASKED ABOUT ADDITIONAL FORWARD GUIDANCE, POWELL SAYS BELIEVES GUIDANCE ADOPTED TODAY IS POWERFUL

    * POWELL SAYS EXPECTS GUIDANCE OFFERED TODAY WILL BE 'DURABLE'

    * POWELL SAYS MAX EMPLOYMENT IS NOT SOMETHING YOU CAN REDUCE TO A NUMBER LIKE INFLATION

    * POWELL SAYS MAX EMPLOYMENT INCLCUDES LOW UE, HIGH LF PARTICIPATION, WAGE IMPROVEMENTS, A WHOLE RANGE OF THINGS

    * POWELL SAYS WE'RE STRONGLY COMMITTED TO ACHIEVING OUR GOALS AND THE OVERSHOOT ON INFLATION

    * POWELL SAYS MODERATE DOES NOT MEAN WELL ABOVE 2 PERCENT

    * POWELL SAYS MAXIMUM EMPLOYMENT IS BASED ON A BROAD RANGE OF FACTORS, INCLUDING WAGES, EMPLOYMENT AND OTHER FACTORS

    * POWELL SAYS EXPECTS THE GENERAL PUBLIC TO UNDERSTAND THE THRUST OF THE NEW GUIDANCE

    * ASKED ABOUT FORWARD GUIDANCE, POWELL SAYS OVER TIME IT WILL PROVIDE VERY POWERFUL SUPPORT TO THE ECONOMY

    * POWELL SAYS THERE IS A BROAD EXPECTATION THAT THERE WILL BE MORE FISCAL ACTION, QUESTION IS HOW MUCH AND WHEN

    * POWELL SAYS SO FAR ECONOMY HAS PROVED RESILIENT TO THE LAPSE IN SOME CARE ACT BENEFITS

    * POWELL SAYS THERE IS A RISK THAT LACK OF FISCAL SUPPORT WILL SHOW UP IN ECONOMIC ACTIVITY, EVICTIONS AND OTHER MEASURES

    * POWELL SAYS RELATIVE STAGNATION OF INCOME FOR LOW INCOME WORKERS AND LOWER MOBILITY HOLDS BACK ECONOMY BUT FED DOESN'T HAVE TOOLS TO ADDRESS THEM

    * POWELL SAYS FED HAS LIMITED TOOLS TO ADDRESS MANY FACETS OF ECONOMIC INEQUALITY, CANNOT TARGET SPECIFIC GROUPS

    * POWELL SAYS THOSE ISSUES ARE REALLY FOR ELECTED OFFICIALS, BUT THESE ISSUES ARE HOLDING BACK PRODUCTIVE CAPACITY OF THE ECONOMY

    * POWELL SAYS WE WOULD LOOK AT HIGH UE AMONG BLACKS FOR INSTANCE IN JUDGING MAX EMPLOYMENT

    * POWELL SAYS PROSPERITY SHOULD BE BROADLY SPREAD IN THE LONGER RUN FOR THERE TO BE THE HIGHEST POTENTIAL ECONOMIC OUTPUT

    * POWELL SAYS THERE HAS BEEN GREAT PROGRESS IN MARKET FUNCTION

    * POWELL SAYS ASSET PURCHASES TOTALING $120 BILLION A MONTH PROVIDE ACCOMMODATION AND CAN BE ADJUSTED AS APPROPRIATE

    * POWELL SAYS ASSET PURCHASES ARE NOW PROVIDING ACCOMMODATIVE FINANCIAL CONDITIONS AND WILL CONTINUE TO MONITOR DEVELOPMENTS AND ADJUST AS NEEDED

    * ASKED ABOUT POSSIBILITY OF A DELAYED ARRIVAL OF A VACCINE, POWELL SAYS WE'RE LEARNING TO LIVE WITH COVID AND ENGAGE IN ECONOMIC ACTIVITY

    * POWELL SAYS THERE ARE AREAS OF THE ECONOMY THAT ARE GOING TO REALLY STRUGGLE UNTIL WE HAVE A VACCINE THAT IS IN WIDE USAGE

    * POWELL SAYS THERE ARE AREAS OF THE ECONOMY THAT WILL CONTINUE TO STRUGGLE UNTIL THERE IS A VACCINE

    * POWELL SAYS FOR SOME TIME THERE WILL BE CERTAIN ACTIVITIES THAT WILL BE HARD TO RESUME

    * POWELL SAYS THE ECONOMY HAS RECOVERED FASTER THAN EXPECTED OVER THE LAST 60 DAYS

    * POWELL SAYS WEARING A MASK AND KEEP DISTANCE WILL IN THE WORKFORCE WILL HELP THE RECOVERY

    * ASKED ABOUT LIMITED LENDING FROM MAIN STREET PROGRAM, POWELL SAYS THE NUMBER IS CLOSER TO $2 BILLION NOW

    * ASKED ABOUT THE MAIN STREET LENDING PROGRAM, POWELL SAYS IT REACHES THE WHOLE NATION AND MORE BANKS AND BORROWERS ARE JOINING

    * POWELL SAYS MAIN STREET CAN RAMP UP AS NEEDED

    * POWELL SAYS SOME LENDERS ARE CONCERNED ABOUT THE UNDERWRITING EXPECTATIONS

    * POWELL SAYS MAIN STREET PROGRAM IS A FACILITY FOR BORROWERS THAT DON'T HAVE ACCESS TO REGULAR AVENUES FOR BORROWING

    * POWELL SAYS FED IS REQUIRED TO ONLY MAKE LOANS TO SOLVENT BORROWERS UNDER EMERGENCY LENDING PROGRAMS

    * POWELL SAYS MANY BORROWERS ARE IN A SITUATION WHERE THEIR BUSINESSES ARE SHUTDOWNS AND THEY CANNOT SERVICE A LOAN AND NEED MORE FISCAL SUPPORT

    * POWELL SAYS FED HAS TO GO THROUGH THE BANKING SYSTEM TO IMPLEMENT MAIN STREET PROGRAM AND THEY ARE EXPECTED TO DO SOME UNDERWRITING

    * POWELL SAYS FED POLICY WILL REMAIN HIGHLY ACCOMMODATIVE UNTIL THE EXPANSION IS WELL ALONG, UNTIL WE HAVE A MODERATE OVERSHOOT OF INFLATION FOR SOME TIME

    * POWELL SAYS POLICY WILL REMAIN ACCOMMODATIVE EVEN AFTER FED LIFTS OFF ON RATES

    * POWELL SAYS HE DOESN'T KNOW THE CONNECTION BETWEEN ASSET PRICES AND FINANCIAL STABILITY IS TIGHT BUT FED WILL CONTINUE TO MONITOR RISKS

    * POWELL SAYS DON'T KNOW THAT THE CONNECTION BETWEEN ASSET PURCHASES AND FIN STAB ARE ALL THAT STRONG

    * POWELL SAYS THE LABOR MARKET HAS BEEN RECOVERING BUT IS A LONG WAY FROM MAXIMUM EMPLOYMENT

    * POWELL SAYS OVERALL PICTURE IS CLEAR BUT LABOR MARKET IS 'A LONG WAY ... A LONG WAY FROM RECOVERING'

    * POWELL SAYS UE MAY BE 8.4% BUT IF YOU ADD BACK THOSE WHO SHOULD BE COUNTED AS UNEMPLOYED THE UE RATE WOULD BE 3 POINTS HIGHER

    * POWELL SAYS IF YOU ADD BACK PEOPLE WHO ARE OUT OF THE LABOR FORCE THE UNEMPLOYMENT RATE WOULD BE 3 POINTS HIGHER THAN IT IS NOW

    * POWELL SAYS THERE'S A LOT TO LIKE ABOUT A TIGHT JOB MARKET ESPECIALLY WHEN THERE IS LITTLE INFLATION

    * POWELL SAYS FED WOULD LIKE TO GET BACK TO A STRONG LABOR MARKET WHERE WAGES ARE MOVING UP, LABOR FORCE PARTICIPATION IS MOVING UP AND INFLATION IS PERFORMING WITH ITS FRAMEWORK

    * POWELL SAYS WE BELIEVE WE CAN HAVE QUITE LOW UNEMPLOYMENT WITHOUT RAISING TROUBLING INFLATION

    * POWELL SAYS FED DOES A LOT OF RESEARCH ON INEQUALITY AND RACIAL DISPARITIES

    * POWELL SAYS WE SERVE ALL AMERICANS AND WE KNOW THAT

    * POWELL SAYS THE WHOLE COMMITTEE IS SUPPORTIVE OF THE STATEMENT OF LONGER RUN GOALS AND EVERYONE SEES NEED TO ADDRESS CHANGES IN THE LONGER RUN ECONOMY

    * POWELL SAYS FED IS THE FIRST MAJOR CENTRAL BANK TO ADOPT THIS FRAMEWORK AND HERE IS NO COOKBOOK

    * POWELL SAYS WE UNDERSTAND WE HAVE TO SUPPORT THIS FRAMEWORK WITH OUR ACTIONS TO EARN CREDIBILITY

    * ASKED ABOUT DISSENTS, POWELL SAYS THERE ARE DIFFERENT IDEAS OF HOW TO DO THIS BUT THAT IS HOW IT IS WHEN YOU HAVE DIVERSE VIEWS

    * POWELL SAYS COMM. REAL ESTATE ALREADY BENEFITS FROM SEVERAL OF OUR FACILITIES

    * POWELL SAYS COMMERCIAL PROPERTIES OFTEN HAVE COVENANTS PREVENTING THEM FROM TAKING ON MORE DEBT, SO HARD TO PROVIDE BROAD RELIEF TO CMBS

    * POWELL SAYS FURTHER SUPPORT TO REAL ESTATE MARKET MAY REQUIRE FURTHER ACTION FROM CONGRESS

    * POWELL SAYS WILL REQUIRE FURTHER ACTION FROM CONGRESS IN REGARD TO CMBS

    * POWELL SAYS IT IS LESS INTUITIVE FOR PUBLIC TO UNDERSTAND THAT INFLATION CAN BE TOO LOW

    * POWELL SAYS FED WANTS INFLATION TO AVERAGE 2% SO PUBLIC WILL EXPECT THAT AND THAT WILL BE BUILT INTO INTEREST RATES

    * POWELL SAYS WE'RE NOT LOOKING TO HAVE HIGH INFLATION, JUST FOR IT TO AVERAGE 2%

    * POWELL SAYS THESE WON'T BE LARGE OVERSHOOTS AND THEY WON'T BE PERMANENT

    * POWELL ENDS PRESS CONFERENCE (Reporting by Dan Burns)

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