International Monetary Fund chief Christine Lagarde warned on Friday that Britain could face years of economic uncertainty if it decides to leave the European Union.

Speaking alongside UK chancellor George Osborne in London, she said the result of such a vote would be a sharp decline in the value of sterling, a contraction in economic growth and higher prices for consumers.

International Monetary Fund chief Christine Lagarde warned on Friday that Britain could face years of economic uncertainty if it decides to leave the European Union.

Speaking alongside UK chancellor George Osborne in London, she said the result of such a vote would be a sharp decline in the value of sterling, a contraction in economic growth and higher prices for consumers.

UK POOL

London - 13 May 2016

1. Christine Lagarde, IMF managing director, approaches podium

2. SOUNDBITE (English) Christine Lagarde, IMF managing director:

"Negotiations on new arrangements with the European Union and other trading partners could in our view take years, leading to a protracted period of uncertainty, and the longer this uncertainty goes on, the more heavily it will weigh on investment and growth. The majority of the economic analysis that has been conducted agree that the vote to depart the EU would be costly in the long run, even after this uncertainty has been resolved, and in the short term there is also a risk of an adverse market reaction to a Leave vote, the implication of which could be particularly severe given what I said earlier about the UK's financial position in the world and the UK's high current account deficit. Should a sharp drop in external financing follow an exit vote, for example, this would imply a significant depreciation of the sterling and large contractions of investment and consumption, implying lower output, lower growth and higher domestic prices."

Federal Reserve Chairman Jerome Powell says the U.S. economy should keep expanding at a solid, though somewhat slower pace this year.

But he warns of growing risks, including a global slowdown, volatile financial markets and uncertainty about U.S. trade policy.

In delivering the Fed's semiannual monetary report to Congress, Powell says the Fed will be "patient" in determining when to boost its benchmark policy rate in light of the various "crosscurrents and conflicting signals."

He says the Fed's rate decisions will be "data dependent" as the economic outlook evolves.

The Fed in December indicated it could hike rates two times this year. But many private economists believe the Fed will keep rates unchanged until late this year and may not hike at all.

Powell said that the economy grew at a strong pace last year, with employment and inflation remaining close to the Fed's goals.

He said it appeared that overall growth was slightly below 3 percent in 2018. The Fed expects 2019 growth to slow somewhat.

Powell cited a number of factors that could slow growth have emerged in recent months.

He noted that growth has slowed in major foreign economies, including China and Europe, and "uncertainty is elevated" around major policy issues such as Brexit, Britain's proposed exit from the European Union, and ongoing U.S. trade negotiations with various countries.

POOL

Washington, DC - 26 February 2019

+++CAMERA SWITCHED AT SOURCE+++

1. Wide of Federal Reserve Chair Jerome Powell arriving for hearing

2. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"The economy grew at a strong pace on balance last year, and employment and inflation remained close to the Federal Reserve's statutory goals of maximum employment and stable prices, our dual mandate. Based on available data we estimate the Gross Domestic Product or GDP rose a little less than 3 percent last year, following a two and a half percent increase in 2017. Last year's growth was led by strong gains in consumer spending and increases in business investment. Growth was supported by increases in employment and wages, optimism among households and businesses, and fiscal policy actions. In the last couple of months some data have softened but still point to spending gains this quarter. While the partial government shutdown created significant hardship for government employees and many others, the negative effects on the economy are expected to be fairly modest, and to largely unwind over the next several months."

+++BLACK FRAMES+++

3. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"The job market remains strong. Monthly job gains averaged 220,000 in 2018, and payrolls increased an additional 304,000 in January. The unemployment rate stood at 4 percent in January, a very low level by historical standards, and job openings remain abundant. Moreover, the ample availability of job opportunities appears to have encouraged some people to join the workforce, and some who otherwise might have left to remain in it. As a result, the labor force participation rate for people in their prime working years, which is to say the share of people ages 25 to 54, who are either working or actively looking for work, has continued to increase over the past year. In another welcome development, we are seeing signs of stronger wage growth."

+++BLACK FRAMES+++

4. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"Overall Consumer Price Inflation, as measured by the 12 month change in the price index for personal consumption expenditures, is estimated to have been one point seven percent in December; held down by recent declines in energy prices. Core PCE (personal consumption expenditures) inflation, which excludes food and energy prices and tends to be a better indicator of future inflation, is estimated at 1.9 percent. At our January meeting, my colleagues and I generally expected the economic activity to expand at a solid pace, albeit somewhat slower than in 2018, and the job market to remain strong."

+++BLACK FRAMES+++

5. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"While we view current economic conditions as healthy, and the economic outlook as favorable, over the past few months we have seen some crosscurrents and conflicting signals. Financial markets have become more volatile toward year end, and financial conditions are now less supportive of growth than they were earlier last year. Growth has slowed in some major foreign economies, particularly China and Europe. And uncertainty is elevated around some unresolved government policy issues, including Brexit and ongoing trade negotiations. We will carefully monitor these issues as they evolve."

6. Cutaway of senators on dais

Federal Reserve Chairman Jerome Powell says the U.S. economy should keep expanding at a solid, though somewhat slower pace this year.

But he warns of growing risks, including a global slowdown, volatile financial markets and uncertainty about U.S. trade policy.

In delivering the Fed's semiannual monetary report to Congress, Powell says the Fed will be "patient" in determining when to boost its benchmark policy rate in light of the various "crosscurrents and conflicting signals."

He says the Fed's rate decisions will be "data dependent" as the economic outlook evolves.

The Fed in December indicated it could hike rates two times this year. But many private economists believe the Fed will keep rates unchanged until late this year and may not hike at all.

Powell said that the economy grew at a strong pace last year, with employment and inflation remaining close to the Fed's goals.

He said it appeared that overall growth was slightly below 3 percent in 2018. The Fed expects 2019 growth to slow somewhat.

Powell cited a number of factors that could slow growth have emerged in recent months.

He noted that growth has slowed in major foreign economies, including China and Europe, and "uncertainty is elevated" around major policy issues such as Brexit, Britain's proposed exit from the European Union, and ongoing U.S. trade negotiations with various countries.

POOL

Washington, DC - 26 February 2019

+++CAMERA SWITCHED AT SOURCE+++

1. Wide of Federal Reserve Chair Jerome Powell arriving for hearing

2. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"The economy grew at a strong pace on balance last year, and employment and inflation remained close to the Federal Reserve's statutory goals of maximum employment and stable prices, our dual mandate. Based on available data we estimate the Gross Domestic Product or GDP rose a little less than 3 percent last year, following a two and a half percent increase in 2017. Last year's growth was led by strong gains in consumer spending and increases in business investment. Growth was supported by increases in employment and wages, optimism among households and businesses, and fiscal policy actions. In the last couple of months some data have softened but still point to spending gains this quarter. While the partial government shutdown created significant hardship for government employees and many others, the negative effects on the economy are expected to be fairly modest, and to largely unwind over the next several months."

+++BLACK FRAMES+++

3. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"The job market remains strong. Monthly job gains averaged 220,000 in 2018, and payrolls increased an additional 304,000 in January. The unemployment rate stood at 4 percent in January, a very low level by historical standards, and job openings remain abundant. Moreover, the ample availability of job opportunities appears to have encouraged some people to join the workforce, and some who otherwise might have left to remain in it. As a result, the labor force participation rate for people in their prime working years, which is to say the share of people ages 25 to 54, who are either working or actively looking for work, has continued to increase over the past year. In another welcome development, we are seeing signs of stronger wage growth."

+++BLACK FRAMES+++

4. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"Overall Consumer Price Inflation, as measured by the 12 month change in the price index for personal consumption expenditures, is estimated to have been one point seven percent in December; held down by recent declines in energy prices. Core PCE (personal consumption expenditures) inflation, which excludes food and energy prices and tends to be a better indicator of future inflation, is estimated at 1.9 percent. At our January meeting, my colleagues and I generally expected the economic activity to expand at a solid pace, albeit somewhat slower than in 2018, and the job market to remain strong."

+++BLACK FRAMES+++

5. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"While we view current economic conditions as healthy, and the economic outlook as favorable, over the past few months we have seen some crosscurrents and conflicting signals. Financial markets have become more volatile toward year end, and financial conditions are now less supportive of growth than they were earlier last year. Growth has slowed in some major foreign economies, particularly China and Europe. And uncertainty is elevated around some unresolved government policy issues, including Brexit and ongoing trade negotiations. We will carefully monitor these issues as they evolve."

6. Cutaway of senators on dais

The Federal Reserve left its key interest rate unchanged Wednesday and signaled that it's unlikely to either raise or cut rates in coming months amid signs of renewed economic health but unusually low inflation.

The Fed left its benchmark rate — which influences many consumer and business loans — in a range of 2.25% to 2.5%.

Its low-rate policy has helped boost stock prices and supported a steadily growing economy.

A statement from the Fed spotlighted its continuing failure so far to lift annual inflation to at least its 2% target rate.

The Fed's preferred 12-month inflation barometer is running at about 1.5%. In pointing to persistently low inflation, the statement might have raised expectations that the Fed's next rate change, whenever it happens, could be a rate cut.

The Fed cuts rates when it's trying to stimulate inflation or growth.

But at a news conference later, Chairman Jerome Powell declined to hint of any potential coming rate cut.

He suggested that the current too-low inflation readings may be transitory or might not be fully capturing real-world price increases.

"The committee is comfortable with our current policy stance," Powell said.

His comments appeared to deflate a modest stock market rally that occurred after the Fed issued its statement, with its mention of unusually low inflation.

POOL

Washington - 1 May 2019

++SOUNDBITES SEPARATED BY BLACK++

1. Chair of the Federal Reserve, Jerome Powell walking to podium

2. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"We reviewed economic and financial developments in the United States and around the world and decided to leave our policy interest rate unchanged. My colleagues and I have one overarching goal: to use our monetary policy tools to sustain the economic expansion with a strong job market and stable prices for the benefit of the American people. Incoming data since our last meeting in March have been broadly in line with our expectations. Economic growth and job creation have both been a bit stronger than we anticipated, while inflation has been somewhat weaker."

++SOUNDBITES SEPARATED BY BLACK++

3. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

" Overall the economy continues on a healthy path and the committee believes that the current stance of policy is appropriate. The Committee also believes that's solid underlying fundamentals are supporting the economy: including accommodative financial conditions, high employment and job growth, rising wages and strong consumer and business sentiment."

++SOUNDBITES SEPARATED BY BLACK++

4. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"Although first quarter GDP rose more than most forecasters had expected, growth in private consumption and business fixed investment slowed. Recent data suggest that these two components will bounce back Supporting our expectation of healthy GDP growth over the rest of the year."

++SOUNDBITES SEPARATED BY BLACK++

5. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"At the start of the year, a number of crosscurrents presented risks to the outlook including weak global growth, particularly in China and Europe, the possibility of a disruptive Brexit and uncertainty around unresolved trade negotiations. While concerns remain in all of these areas, it appears that risks have moderated somewhat. Global financial conditions have eased supported in many places around the world by an accommodative shift in monetary policy and in some cases fiscal policy. Recent data from China and Europe show some improvement and the prospect of a disorderly Brexit has been pushed off for now. Further, there are reports of progress in the trade talks between the United States and China. The committee views these developments along with the outlook for continued growth, a strong job market and muted inflation pressures as consistent with continued patience in assessing further adjustments in monetary policy."

++SOUNDBITES SEPARATED BY BLACK++

6. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"Our outlook and my outlook is a positive one, is a healthy one for the US economy for growth for the rest of this year and I would say that the basis for that really is consumer spending and business investment."

The Federal Reserve left its key interest rate unchanged Wednesday and signaled that it's unlikely to either raise or cut rates in coming months amid signs of renewed economic health but unusually low inflation.

The Fed left its benchmark rate — which influences many consumer and business loans — in a range of 2.25% to 2.5%.

Its low-rate policy has helped boost stock prices and supported a steadily growing economy.

A statement from the Fed spotlighted its continuing failure so far to lift annual inflation to at least its 2% target rate.

The Fed's preferred 12-month inflation barometer is running at about 1.5%. In pointing to persistently low inflation, the statement might have raised expectations that the Fed's next rate change, whenever it happens, could be a rate cut.

The Fed cuts rates when it's trying to stimulate inflation or growth.

But at a news conference later, Chairman Jerome Powell declined to hint of any potential coming rate cut.

He suggested that the current too-low inflation readings may be transitory or might not be fully capturing real-world price increases.

"The committee is comfortable with our current policy stance," Powell said.

His comments appeared to deflate a modest stock market rally that occurred after the Fed issued its statement, with its mention of unusually low inflation.

POOL

Washington - 1 May 2019

++SOUNDBITES SEPARATED BY BLACK++

1. Chair of the Federal Reserve, Jerome Powell walking to podium

2. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"We reviewed economic and financial developments in the United States and around the world and decided to leave our policy interest rate unchanged. My colleagues and I have one overarching goal: to use our monetary policy tools to sustain the economic expansion with a strong job market and stable prices for the benefit of the American people. Incoming data since our last meeting in March have been broadly in line with our expectations. Economic growth and job creation have both been a bit stronger than we anticipated, while inflation has been somewhat weaker."

++SOUNDBITES SEPARATED BY BLACK++

3. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

" Overall the economy continues on a healthy path and the committee believes that the current stance of policy is appropriate. The Committee also believes that's solid underlying fundamentals are supporting the economy: including accommodative financial conditions, high employment and job growth, rising wages and strong consumer and business sentiment."

++SOUNDBITES SEPARATED BY BLACK++

4. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"Although first quarter GDP rose more than most forecasters had expected, growth in private consumption and business fixed investment slowed. Recent data suggest that these two components will bounce back Supporting our expectation of healthy GDP growth over the rest of the year."

++SOUNDBITES SEPARATED BY BLACK++

5. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"At the start of the year, a number of crosscurrents presented risks to the outlook including weak global growth, particularly in China and Europe, the possibility of a disruptive Brexit and uncertainty around unresolved trade negotiations. While concerns remain in all of these areas, it appears that risks have moderated somewhat. Global financial conditions have eased supported in many places around the world by an accommodative shift in monetary policy and in some cases fiscal policy. Recent data from China and Europe show some improvement and the prospect of a disorderly Brexit has been pushed off for now. Further, there are reports of progress in the trade talks between the United States and China. The committee views these developments along with the outlook for continued growth, a strong job market and muted inflation pressures as consistent with continued patience in assessing further adjustments in monetary policy."

++SOUNDBITES SEPARATED BY BLACK++

6. SOUNDBITE (English) Jerome Powell, Chair of the Federal Reserve:

"Our outlook and my outlook is a positive one, is a healthy one for the US economy for growth for the rest of this year and I would say that the basis for that really is consumer spending and business investment."

Federal Reserve Chairman Jerome Powell said Wednesday before the Senate Banking Committee that very low unemployment rates no longer necessarily push up inflation. A relationship between the two existed "50 years ago" but that has gotten "weaker and weaker and weaker," Powell said.

Powell's comments in the second day of testimony on Capitol Hill suggest the Fed is more comfortable keeping short-term interest rates low and suggests that Fed policymakers may cut rates at its meeting later this month.

For decades, economists assumed that low unemployment - such as the current jobless rate of 3.7% - meant that employers would have to raise pay to attract and keep workers, and in turn, would then raise prices to cover higher wage costs. Many Fed officials historically would then support raising interest rates to forestall what was called a "wage-price spiral."

But now, Powell said, the unemployment rate can likely fall much further than in the past without sparking inflation, which means that interest rates can also stay lower.

"I think we're learning all of those things," he said.

Powell's prepared testimony to the Senate Banking Committee on Thursday was identical to the remarks he delivered Wednesday before the House Financial Services Committee on Wednesday.

Before the House and Senate committees, Powell said that the central bank is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month.

"Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell said in his opening comments.

Powell's remarks on Wednesday sent stocks surging as investors believed the Fed chairman was sending his strongest signal yet that the Fed was ready to cut its policy rate, which currently stands in a range of 2.25% to 2.5%.

The Fed raised rates four times in 2018, drawing the ire of President Donald Trump, who has called the central bank clueless by pursuing needless rate hikes that have slowed economic growth and depressed stock gains.

Much of Trump's criticism has focused on Powell, his choice as Fed chairman.

The president has said he has the power to fire Powell or demote him, something that legal experts dispute.

Asked about Trump's threats on Wednesday, Powell repeated what he has said before that he has a four-year term as chairman and intends to serve the full term.

Powell got support from lawmakers in the House and the Senate for his efforts to maintain the Fed's independence from political pressure.

POOL

Washington - 11 July 2019

1. Wide cutaway of Powell testifying

2. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"Our baseline outlook is for economic growth to remain solid, labor markets to stay strong and inflation to move back up over time to the committee's 2 percent objective. However, uncertainties about the outlook have increased in recent months in particular economic momentum appears to have slowed in some major foreign economies and that weakness could affect the U.S. economy. Moreover, a number of government policy issues have yet to be resolved including trade developments, the federal debt ceiling, and Brexit. And there is a risk that weak inflation will be even more persistent than we currently anticipate. We are carefully monitoring these developments and we will continue to assess their implications for the U.S. economic outlook and inflation."

3. Medium cutaway of committee

4. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"In our June meeting, we indicated that in light of increased uncertainties about the economic outlook and muted inflation pressures we would closely monitor the implications of incoming information for the economic outlook and would act as appropriate to sustain the expansion. Many FOMC (Federal Open Market Committee) participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook."

5. Wide cutaway of well and committee

6. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"Is there a new paradigm out there as far as the evaluating this today and is it because of the global economy or what is it? Because we have low unemployment but we have at the moment not a lot of pressure from your testimony and what we observe on inflation."

7. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"The relationship between slack in the economy or unemployment and inflation was a strong one 50 years ago. If you remember that in the 60s there was a close correlation there. And that that has gone away and it's really been."

8. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"But we had a different economy then did we not?"

9. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"Very different economy in so many ways. And this in this way that really I would say that period at least 20 years ago that period was over and the relationship between unemployment and inflation became weak. It's become weaker and weaker and weaker. In addition to that, I think we're learning that interest rates, that the neutral interest rate is lower than we had thought. And I think we're learning that the natural rate of unemployment is lower than we've thought. So monetary policy hasn't been as accommodative as we had thought. So I think we're learning all of those things at the end of the day there has to be a connection because low unemployment will drive wages up and ultimately wages higher wages will drive inflation but we haven't reached that point. And in any case that connection between the two is quite small these days."

10. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"Thank you Mr. Chairman. Chairman Powell thank you for your service. Thank you for your work to keep the Federal Reserve independent of both parties and do your job for what it was set up to be. We salute you for that."

11. Wide of committee

Federal Reserve Chairman Jerome Powell said Wednesday before the Senate Banking Committee that very low unemployment rates no longer necessarily push up inflation. A relationship between the two existed "50 years ago" but that has gotten "weaker and weaker and weaker," Powell said.

Powell's comments in the second day of testimony on Capitol Hill suggest the Fed is more comfortable keeping short-term interest rates low and suggests that Fed policymakers may cut rates at its meeting later this month.

For decades, economists assumed that low unemployment - such as the current jobless rate of 3.7% - meant that employers would have to raise pay to attract and keep workers, and in turn, would then raise prices to cover higher wage costs. Many Fed officials historically would then support raising interest rates to forestall what was called a "wage-price spiral."

But now, Powell said, the unemployment rate can likely fall much further than in the past without sparking inflation, which means that interest rates can also stay lower.

"I think we're learning all of those things," he said.

Powell's prepared testimony to the Senate Banking Committee on Thursday was identical to the remarks he delivered Wednesday before the House Financial Services Committee on Wednesday.

Before the House and Senate committees, Powell said that the central bank is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month.

"Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell said in his opening comments.

Powell's remarks on Wednesday sent stocks surging as investors believed the Fed chairman was sending his strongest signal yet that the Fed was ready to cut its policy rate, which currently stands in a range of 2.25% to 2.5%.

The Fed raised rates four times in 2018, drawing the ire of President Donald Trump, who has called the central bank clueless by pursuing needless rate hikes that have slowed economic growth and depressed stock gains.

Much of Trump's criticism has focused on Powell, his choice as Fed chairman.

The president has said he has the power to fire Powell or demote him, something that legal experts dispute.

Asked about Trump's threats on Wednesday, Powell repeated what he has said before that he has a four-year term as chairman and intends to serve the full term.

Powell got support from lawmakers in the House and the Senate for his efforts to maintain the Fed's independence from political pressure.

POOL

Washington - 11 July 2019

1. Wide cutaway of Powell testifying

2. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"Our baseline outlook is for economic growth to remain solid, labor markets to stay strong and inflation to move back up over time to the committee's 2 percent objective. However, uncertainties about the outlook have increased in recent months in particular economic momentum appears to have slowed in some major foreign economies and that weakness could affect the U.S. economy. Moreover, a number of government policy issues have yet to be resolved including trade developments, the federal debt ceiling, and Brexit. And there is a risk that weak inflation will be even more persistent than we currently anticipate. We are carefully monitoring these developments and we will continue to assess their implications for the U.S. economic outlook and inflation."

3. Medium cutaway of committee

4. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"In our June meeting, we indicated that in light of increased uncertainties about the economic outlook and muted inflation pressures we would closely monitor the implications of incoming information for the economic outlook and would act as appropriate to sustain the expansion. Many FOMC (Federal Open Market Committee) participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook."

5. Wide cutaway of well and committee

6. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"Is there a new paradigm out there as far as the evaluating this today and is it because of the global economy or what is it? Because we have low unemployment but we have at the moment not a lot of pressure from your testimony and what we observe on inflation."

7. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"The relationship between slack in the economy or unemployment and inflation was a strong one 50 years ago. If you remember that in the 60s there was a close correlation there. And that that has gone away and it's really been."

8. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"But we had a different economy then did we not?"

9. SOUNDBITE (English) Jerome Powell, Chairman of the Federal Reserve:

"Very different economy in so many ways. And this in this way that really I would say that period at least 20 years ago that period was over and the relationship between unemployment and inflation became weak. It's become weaker and weaker and weaker. In addition to that, I think we're learning that interest rates, that the neutral interest rate is lower than we had thought. And I think we're learning that the natural rate of unemployment is lower than we've thought. So monetary policy hasn't been as accommodative as we had thought. So I think we're learning all of those things at the end of the day there has to be a connection because low unemployment will drive wages up and ultimately wages higher wages will drive inflation but we haven't reached that point. And in any case that connection between the two is quite small these days."

10. SOUNDBITE (English) Sen. Richard Shelby, (R) Alabama:

"Thank you Mr. Chairman. Chairman Powell thank you for your service. Thank you for your work to keep the Federal Reserve independent of both parties and do your job for what it was set up to be. We salute you for that."

11. Wide of committee

Stocks marched broadly higher Wednesday afternoon after the Federal Reserve signaled it could hold off on interest rate increases in the coming months, citing muted inflation.

The Fed's benchmark short-term rate will remain in a range of 2.25 percent to 2.5 percent after having been raised four times last year. The central bank says it plans to be "patient" about future rate hikes in light of "global economic and financial developments and muted inflation pressures."

The Fed's cautionary words about rates mark a softening from its previous meeting, when it appeared to leave open the prospect of further increases soon.

Investors cheered the Fed's message after its latest meeting that it foresees no need to raise borrowing rates anytime soon even while the economy remains on firm footing. The Dow Jones Industrial Average, which had already been up strongly, surged about 200 points once the Fed statement was released and was up about 430 points 30 minutes later.

POOL

Washington, DC - 30 January 2019

1. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"The U.S. economy is in a good place and we will continue to use our monetary policy tools to help keep it there. The jobs picture continues to be strong, with the unemployment rate near historic lows, and with stronger wage gains. Inflation remains near our 2 percent goal. We continue to expect that the American economy will grow at a solid pace in 2019, although likely slower than the very strong pace of 2018. We believe that our current policy stance is appropriate at this time."

+++WHITE FLASH+++

2. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"Growth has slowed in some major foreign economies, particularly China and Europe. There is elevated uncertainty around several unresolved government policy issues including Brexit, ongoing trade negotiations, and the effects from the partial government shutdown in the United States. Financial conditions tighten considerably late in 2018 and remain less supportive of growth than they were earlier in 2018. And while most of the incoming domestic economic data have been solid some surveys of business and consumer sentiment have moved lower giving reason for caution."

+++WHITE FLASH+++

3. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve

"Today the FOMC decided that the cumulative effects of those developments over the last several months warrant a patient wait and see approach regarding future policy changes. In particular our statement today says in light of global economic and financial developments and muted inflation pressures the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate."

+++ENDS ON A SOUNDBITE+++

Stocks marched broadly higher Wednesday afternoon after the Federal Reserve signaled it could hold off on interest rate increases in the coming months, citing muted inflation.

The Fed's benchmark short-term rate will remain in a range of 2.25 percent to 2.5 percent after having been raised four times last year. The central bank says it plans to be "patient" about future rate hikes in light of "global economic and financial developments and muted inflation pressures."

The Fed's cautionary words about rates mark a softening from its previous meeting, when it appeared to leave open the prospect of further increases soon.

Investors cheered the Fed's message after its latest meeting that it foresees no need to raise borrowing rates anytime soon even while the economy remains on firm footing. The Dow Jones Industrial Average, which had already been up strongly, surged about 200 points once the Fed statement was released and was up about 430 points 30 minutes later.

POOL

Washington, DC - 30 January 2019

1. Mid of Federal Reserve Chair Jerome Powell entering

2. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"The U.S. economy is in a good place and we will continue to use our monetary policy tools to help keep it there. The jobs picture continues to be strong, with the unemployment rate near historic lows, and with stronger wage gains. Inflation remains near our 2 percent goal. We continue to expect that the American economy will grow at a solid pace in 2019 although likely slower than the very strong pace of 2018. We believe that our current policy stance is appropriate at this time."

+++BLACK FRAMES+++

3. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"Growth has slowed in some major foreign economies, particularly in China and Europe. There is elevated uncertainty around several unresolved government policy issues including Brexit, ongoing trade negotiations, and the effects from the partial government shutdown in the United States. Financial conditions tightened considerably late in 2018 and remain less supportive of growth than they were earlier in 2018. And while most of the incoming domestic economic data have been solid, some surveys of business and consumer sentiment have moved lower giving reason for caution."

+++BLACK FRAMES+++

4. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"Today the FOMC decided that the cumulative effects of those developments over the last several months warrant a patient wait and see approach regarding future policy changes. In particular, our statement today says in light of global economic and financial developments and muted inflation pressures the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate."

+++BLACK FRAMES+++

5. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"In this environment we believe we can best support the economy by being patient and evaluating the outlook before making any future adjustment to policy."

+++BLACK FRAMES+++

6. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"In addition the case for raising rates has weakened somewhat. A traditional case for rate increases is to protect the economy from risks that arise when rates are too low for too long, particularly the risk of too high inflation. Over the past few months that risk appears to have diminished. Inflation readings have been muted and the recent drop in oil prices is likely to push headline inflation lower still in coming months."

+++ENDS ON A SOUNDBITE+++

Stocks marched broadly higher Wednesday afternoon after the Federal Reserve signaled it could hold off on interest rate increases in the coming months, citing muted inflation.

The Fed's benchmark short-term rate will remain in a range of 2.25 percent to 2.5 percent after having been raised four times last year. The central bank says it plans to be "patient" about future rate hikes in light of "global economic and financial developments and muted inflation pressures."

The Fed's cautionary words about rates mark a softening from its previous meeting, when it appeared to leave open the prospect of further increases soon.

Investors cheered the Fed's message after its latest meeting that it foresees no need to raise borrowing rates anytime soon even while the economy remains on firm footing. The Dow Jones Industrial Average, which had already been up strongly, surged about 200 points once the Fed statement was released and was up about 430 points 30 minutes later.

POOL

Washington, DC - 30 January 2019

1. Mid of Federal Reserve Chair Jerome Powell entering

2. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"The U.S. economy is in a good place and we will continue to use our monetary policy tools to help keep it there. The jobs picture continues to be strong, with the unemployment rate near historic lows, and with stronger wage gains. Inflation remains near our 2 percent goal. We continue to expect that the American economy will grow at a solid pace in 2019 although likely slower than the very strong pace of 2018. We believe that our current policy stance is appropriate at this time."

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3. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"Growth has slowed in some major foreign economies, particularly in China and Europe. There is elevated uncertainty around several unresolved government policy issues including Brexit, ongoing trade negotiations, and the effects from the partial government shutdown in the United States. Financial conditions tightened considerably late in 2018 and remain less supportive of growth than they were earlier in 2018. And while most of the incoming domestic economic data have been solid, some surveys of business and consumer sentiment have moved lower giving reason for caution."

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4. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"Today the FOMC decided that the cumulative effects of those developments over the last several months warrant a patient wait and see approach regarding future policy changes. In particular, our statement today says in light of global economic and financial developments and muted inflation pressures the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate."

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5. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"In this environment we believe we can best support the economy by being patient and evaluating the outlook before making any future adjustment to policy."

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6. SOUNDBITE (English) Jerome Powell, Chair, Federal Reserve:

"In addition the case for raising rates has weakened somewhat. A traditional case for rate increases is to protect the economy from risks that arise when rates are too low for too long, particularly the risk of too high inflation. Over the past few months that risk appears to have diminished. Inflation readings have been muted and the recent drop in oil prices is likely to push headline inflation lower still in coming months."

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