FACTBOX: Fed policymakers' recent comments

CHICAGO (Reuters) - The following is a summary of recent comments by Federal Reserve policy-makers:

* Denotes 2009 voting member of the Federal Open Market Committee, which sets U.S. monetary policy.

RICHMOND FED PRESIDENT JEFFREY LACKER, JAN 16:

"As long as you have some material risk that remains on a bank's books, any new equity investor is going to be subsidizing existing debt holders. That is going to pose an impediment to raising new equity and recapitalizing the banking system from the private sector."

* SAN FRANCISCO FED PRESIDENT JANET YELLEN, JAN 15:

"With respect to wealth, the combined impact of falling equity and house prices has been staggering ... it seems likely that inflation will move, for a time, below levels that are consistent with price stability."

"Federal Reserve policy-makers would find it unacceptable to left inflation fall below 1 percent ... we need to make it clear that would be undesirable, unwelcome and we would fight it."

* CHICAGO FED PRESIDENT CHARLES EVANS, JAN 15:

"Having an explicit numerical objective for inflation could help inflation expectations from falling very far."

"It could be useful to purchase significant quantities of longer-term securities such as agency debt, agency mortgage-based securities and Treasury securities."

* ATLANTA FED PRESIDENT DENNIS LOCKHART, JAN 15:

"Banks remain under stress, so it would be hard to predict that there will be no more failures."

"The capital injections have helped ... If the second $350 billion tranche of the TARP (Troubled Asset Relief Program) in fact is deployed, in all likelihood, some of that will be deployed to inject further capital into banks."

MINNEAPOLIS FED PRESIDENT GARY STERN, JAN 14:

"In view of the state of the credit markets and of the housing sector, it seems a fair bet that it will take time for momentum to build.

"Neither concern (deflation or inflation) can be dismissed out of hand, but if economic growth resumes in the United States as I expect, the threat of deflation should diminish commensurately."

PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, JAN 14:

"Our aggressive lending, while intended to help the economy and financial crisis recover, poses its own set of challenges. We must develop a well-articulated exit strategy if we are to maintain control of monetary policy."

* ATLANTA FED PRESIDENT DENNIS LOCKHART, JAN 12:

"The Federal Reserve has not exhausted its policy tools. The policy arsenal available to the Fed remains a powerful corrective force on the economy. Even with the federal funds rate effectively at zero, there is ample scope to do more ... if conditions require."

"A fed fund rate this low will have considerable macroeconomic effect, especially if accompanied by policies to improve the functioning of credit markets."

KANSAS CITY FED PRESIDENT THOMAS HOENIG, JAN. 7:

"The Federal Reserve must now manage its balance sheet in a manner that not only places liquidity in the economy, but also in a manner that does not undermine the long-term functioning of markets.

"The first thing I tell people on deflation is obviously there is always a possibility, but I don't consider it to be a large possibility."

* SAN FRANCISCO FED PRESIDENT JANET YELLEN, JAN. 4:

"This move (to zero to 0.25 percent) exhausts the Fed's ability to provide stimulus through 'conventional' monetary policy actions. But it by no means exhausts the Fed's options to stimulate the economy through other measures. The committee's focus going forward will be on 'nonconventional' programs that use its balance sheet to improve the functioning of financial markets, an arena where considerable scope for action remains.

"The financial and economic firestorm we face today poses a serious risk of an extended period of stagnation -- a very grim outcome."

ST LOUIS FED PRESIDENT JAMES BULLARD, JAN. 3:

"Now would be a particularly good time to (set an explicit inflation target) because you have this possibility of expectations drifting off to deflation or a lot of inflation.

"My main concern for the Fed in the medium term ... is how to keep inflation expectations anchored. We can no longer send signals by moving interest rates."

* CHICAGO FED PRESIDENT CHARLES EVANS, JAN. 3:

"If it were not constrained by zero, (economic) models would want to push it below zero, but that's not possible." Quantitative easing "is a way to mimic below-zero rates and provide support to the economy."

FOMC STATEMENT, DEC. 16:

"The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 0.25 percent.

"Since the committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.

"Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the committee expects inflation to moderate further in coming quarters.

"The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

"The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant.

"The committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity."

(Reporting by Ros Krasny; Editing by Kenneth Barry)