Thanks for joining us today. I would like to begin by acknowledging the tragic loss in tremendous hardship that people are experiencing both here in the United States and around the world. The coronavirus outbreak is first and foremost a Public Health crisis and the most important response is coming from those in the front lines in hospitals, emergency services, and care facilities. On behalf of the Federal Reserve, let me express are severe sincere gratitude to those who put themselves in risk. The forceful measures we are taking to control the spread of the virus have brought much of the economy to an abrupt halt. It is worse worth remembering the measures we are taking to combat the virus are an investment in our individual and collective health. We should do everything we can to provide relief to those suffering for the public good. While many standard Economic Statistics have yet to catch up with the reality we are experiencing, it is clear that the effects on the economy are clear. Millions of workers are losing their jobs. Next weeks jobs report is expected to show that the Unemployment Rate, which was at 50year lows two months ago, has surged into double digits. Household spending has plummeted as people stay home. Measures of Consumer Sentiment have fallen precipitously. Hotels, airlines, restaurants, department stores, and other retailers have been particularly hardhit. Manufacturing output fell sharply in march and is expected to drop even more this month as many factories have temporarily closed. Overall, Economic Activity will likely drop at an unprecedented rate in the Second Quarter. Inflation is also being held down, reflecting weaker demand and lower Energy Prices. Both the depth and the duration of the economic downturn are extraordinarily uncertain and will depend in large part on how quickly the virus is brought under control. The severity will also depend on the policy actions taken at all levels ofquickly the virus is bt under control. Government to cushion the blow and support the recovery when the Public Health crisis passes. Reserves responses reserves responses guided by our mandate to promote maximum employment and stable prices for the American People and to support the stability of the Financial System. We are also committed to using our full range of tools to support the economy in this challenging time. Last month, we quickly lowered our Interest Rate to near zero. We stated then and today that we expect to maintain Interest Rates at this level until we are confident that the economy has weathered recent events and is on track to achieve our maximum achievement and price stability goals. Of course, lowering Interest Rates cannot stop the sharp drop in Economic Activity caused by the closures and other forms of social distancing and low rates will not effectively spur the economy if those rates do not feed through to broader financial conditions or of households and businesses are unable to get credit. The economic disruptions caused by the virus created tremendous strains in some Financial Markets and have impaired the flow of credit in the economy. Families can be forced to cut back on necessities and be forced to lose their homes. Businesses could be forced to downsize worsening the downturn. Preserving the flow of credit is essential for mitigating the damage to the economy and setting the stage for the recovery. Broad anden taking forceful actions to these ends. To support the flow of credit, to foster smooth market functioning, and promote effective transition of Monetary Policy to broader financial conditions, we have been ofchasing large amounts treasury and mortgagebacked securities. The market for the securities play a Critical Role in the economy and they came under great stress last month as the scale of economic disruption became clearer and as investors clamored for liquidity. Our purchases have helped Market Conditions improve in recent weeks. Have slowedthis, we our pace of purchases. Is tothe primary purpose preserve smooth market functioning and effective policy transmission, the purchases will also foster more accommodative financial conditions. Programsso undertaking to provide stability to the Financial System. Households, businesses of all sizes, and state and local governments. These programs benefit the economy. , by serving as a backstop to key credit markets, they can improve credit functioning by improving the willingness of credit lenders to provide. Many rely on emergency lending. Owers only available we are deploying these lending powers to an unprecedented extent enabled in large part by the backing of congress and the treasury. We will continue to use these powers forcefully and proactively until we are confident that we are on the road to recovery. I would stress that these are lending powers and not spending powers. The fed cannot grant money to particular beneficiaries. We can only make loans to solid entities with the expectation that they will be repaid. Asy borrowers will benefit, will the overall economy. For many others, getting a loan may be difficult to repay and it may not be the answer. In these cases, direct fiscal report may be needed support may be needed. Elected officials have the ability to tax and spend. The cares act and other legislation provide direct help to people, businesses, and communities. This direct support can make a critical difference and also in limiting longlasting damage to our economy. At the fed, were doing all we can to help American Families and businesses weather this difficult period. When the spread of the virus is under control, businesses will reopen and people will come back to work. We will continue to use our tools to assure that the recovery, when it comes, will be as robust as possible. Thank you, and ill be glad to take your questions. Jeanna smialek. Chair powell, thanks for taking your questions. You guys have cut rates to zero. Youre buying up huge quantities of government debt. I guess the question is, what more can you realistically do to help the economy, and where do you see a need for congress to step in . Chairman powell let me say that were committed to using our full range of tools to support the economy in this challenging time. Were going to use them, as i mentioned, forcefully, proactively, and aggressively until were confident that were solidly on the road to recovery, and also to assure that that recovery, when it comes, will be as robust as possible. As long as needed, well use them, and i would just say we have a number of dimensions on which we can still provide support to the economy. As you know, our credit policies are not subject to particular dollar limit. We can also do new ones. We can continue to be part of the answer. Will there be a need to do more . I think the answer to that will be yes. Congress has also reacted quite aggressively and strongly with the cares act and other laws, several other laws and that is appropriate. With enhanced Unemployment Insurance and the Paycheck Protection Program, we have seen a historically large reaction, but i would say that it may well be the case that the economy will need more support from all of us if the recovery is to be a robust one. Nick timiraos. Thanks, chair powell. Nick timiraos of the wall street journal. I want to follow up on jeannas question and ask what, specifically, do you think elected officials should consider in order to help return or hasten a stronger return to full employment, and what policy tools did you discuss at your meeting today that might be used to stop a deflationary spiral . Chairman powell let me start. Ill take the questions in the order you gave them. In terms of, if i can say legislative priorities, were not responsible for fiscal policy. Those will be decisions for congress to make. I would say that policies that protect workers, businesses and households from avoidable insolvency, that keep businesses going so that theyre able to produce goods in it, and to either hold onto their employees or quickly rehire them, those are going to be key policies. Theyll come with a hefty price tag, but we would come out of this event eventually with a stronger economy and with less longrun damage to the economy. Thats a key thing that, really, congress could do over time. In terms of what we can do, i mentioned we have our Credit Facilities are wide open. We can do more on that front. In addition, weve had extensive discussions, as ive mentioned. Done a lot of thinking about what Monetary Policy might look like in coming months over a range of potential scenarios for the economy. We do think that our policy stance today is right where it should be for now. As you know, we cut rates to the effect of lower bound, and weve said that well keep them there until were confident that the economy has weathered the effects of the outbreak and is on track to achieve our goals. With asset purchases, were continuing to purchase treasury securities and agency mbs in the amounts needed to support smooth market functioning. Were doing those things, and i would say that we will continue to use our tools as needs be. Steve liesman. Mr. Chairman, question, Steve Liesman with cnbc. Ive got two questions here. First of all, why arent you announcing or conducting a specific Quantitative Easing Program . And maybe you could explain what the context is now of the purchases that will be made and the amounts that are to come. The second question i have is, is the Federal Reserve really taking enough risk to help households and businesses here . In that you just said that the programs that are out there maybe best for those who are able to repay loans, but dont you have a series of programs essentially lending only those able to repay, which is essentially helping those who may need it the least . Thank you. Chairman powell let me say again. In terms of asset purchases and other measures, we do think our policy stance is appropriate now. Weve had discussions, as ive mentioned, over time, and done quite a bit of thinking about what we might do in the future. We think, for now, our policy stance is appropriate. Were not going to change it now, and were really waiting to see more from the economy. There are a range of potential paths the economy could be on, and i think as the time approaches for, then well address your first question, which is about asset purchases. But thats not something were doing today. Its something that we have talked about, and for now, we like our current policy stance. In terms of risk, we operate under the laws that congress passes, and there are a number of aspects under section 13. 3, and you can see that theyve permitted us to, i think, move very quickly, and move into areas where weve never been before and do so quite aggressively. I think were going places and providing help in places where we never have and im glad that we are. I think its appropriate that we are. Nonetheless, these are lending powers, and if you read section 13. 3 of the Federal Reserve act, and i know you have, it does require require it does require that we be secured to our satisfaction, and we cant lend to insolvent companies. Its clear these are lending powers and we are ultimately bound to implement the laws that Congress Gives us. We do not make grants, we cant make grants, and the reason i raised that in my remarks is that i just want to be clear on that. We can do what we can do, and we will do it to the absolute limit of those powers. Well keep at it, and i just want people to know that we will be at it with the legal authorities that we have until we get through this thing. We will keep using our authorities, but there are authorities that we dont have, and there may be a need for those authorities to be used, as well as ours. Heather long. Hi, chair powell, its heather long from the Washington Post co. I have two co. Washington post the Washington Post. I have two questions for you, both on timing. The first, do you plan to launch the Corporate Credit facility and the main Street Lending facilities in may or early may . Anything you can give us, a sense on timing . The second, in the statement, the fomc refers today to a lot of mediumterm risks from the pandemic. That sounds like you all think this is going to be a long recovery, a long road to recovery. Can you give any more guidance on how you all see this recovery taking shape . Thanks. Chairman powell sure. In terms of this facilities, the corporate Credit Facilities are near being finalized and will be operating, i would say, soon, fairly soon. Main street facility, were close to announcing issuing a new term sheet. As you know, we put out a term sheet for comment a while back and we got a couple of thousand comments. We have carefully studied them. Weve tried to reflect those in what we are doing now. I think with main street, therell be at least a couple of different kinds of lending going on there. This is a broad area of the economy with many different kinds of credit needs, so were going to keep at that for some time, i think, adding in sectors and lending products. I think well probably be continuing to work and expand main street for some time, but it wont be done quite as quickly, but the first part of it, i think, will be done fairly quickly. In terms of our statement, so what we said was that ill just read the sentence. It says, ongoing Public Health crisis will weigh heavily on Economic Activity, employment, and inflation in the near term, and poses considerable risks of the Economic Outlook over the mediumterm. What we meant by that, over the mediumterm obviously, what were talking about is, not right now in the very near term. Its between now and the long term, so, the next year or so. I or so. I would point to a couple of risks to the outlook that we were thinking of. First is just the virus. How long will it take to get it under control . Will there be additional outbreaks . Will there be drugs that can either treat it, or a vaccine of some kind . All of that is very much shrouded in uncertainty. The second issue, and this is a very substantial one, is just the possibility of damage to the productive capacity of the economy through a couple of channels. The first is just workers, who, if one is unemployed for an extended period, that person can lose the skills that are needed, can lose touch with the labor force, and have difficulty restarting his or her career. Thats a feature of deep and long recessions, and thats something weve got to watch out for. Another is just businesses. These thousands of great medium and smallsized businesses that we have all over the country, they are worth so much more to the economy than the sum of their net assets. Theyre job creators, theyre really important, and if we see unnecessary insolvencies, a wave of those, that could be damaging to the performance of the economy over time. The good news is that we have policies, as i mentioned in my remarks. We have policies that can address those things, but not perfectly, so thats another risk. The third thing i would point to is just the global dimension. This is a very global phenomenon, and were seeing Economic Data from around the globe which is very, very negative, and that, too, can weigh on u. S. Economic performance over time. I would say, just on the u. S. Economy there are things you can say. The first is that, in the near term, were going to see significant declines in Economic Activity, significant declines in employment, and increases in unemployment. Were going to see that as a consequence of the virus and the measures were taking to protect ourselves from it. The next phases are more uncertain, highly uncertain, but we will go through a phase starting fairly soon where we begin to reopen the economy, and probably the Economic Activity will pick up as Consumer Spending picks up. Consumer spending, as i mentioned, is going down quite a lock. Itll begin to pick up as people start to return to their normal patterns of spending, but the chances are that it wont go right back to where we were because people will until theyre confident that the virus is well and truly under control they will be somewhat reluctant to undertake certain kinds of activities. It may take some time for us to get back. It probably will take some time for us to get back to a more normal level of unemployment and, ultimately, to maximum employment. Okay, james politi. Thanks, chair powell. You didnt firm up your guidance on this is james politi from the financial times. You didnt firm up your guidance on Interest Rates at this meeting, and given the risks that you just outlined, under what circumstances would you strengthen the feds commitment to keep rates at the lower bound. Is there any danger to delaying that . What circumstances would youon t kind of demand are you expecting for the programs that were cut up under the cares act . Are you expecting to rapidly reach capacity like the ppp plan did . On the first,l as i mentioned, you know we moved very quickly, very aggressively. We were the first to return to the effective lower bound where we are now. We got there essentially right away and we think thats the right place to be. We think if you look at surveys, you look at market pricing, the market expects us to be there for a good while and thats appropriate. So its not as though the market is pric