FACTBOX-U.S. Fed policy-makers' recent comments

CHICAGO, Aug 21 (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.

* FED CHAIRMAN BEN BERNANKE, AUG 21:

"Economic activity appears to be leveling out, both in the
United States and abroad, and prospects for a return to growth
in the near term appear good.

"Recovery is likely to be relatively slow at first, with
unemployment declining only gradually from high levels.

"Although we have avoided the worst, difficult challenges
still lie ahead. We must work together to build on the gains
already made to secure a sustained economic recovery and a new
financial regulatory framework."

TEXT OF FED STATEMENT FROM AUG 11-12 MEETING:

"Information received since the FOMC met in June suggests
that economic activity is leveling out. Conditions in financial
markets have improved further in recent weeks. Household
spending has continued to show signs of stabilizing but remains
constrained by ongoing job losses, sluggish income growth,
lower housing wealth, and tight credit. Businesses are still
cutting back on fixed investment and staffing but are making
progress in bringing inventory stocks into better alignment
with sales. Although economic activity is likely to remain weak
for a time, the Committee continues to anticipate that policy
actions to stabilize financial markets and institutions, fiscal
and monetary stimulus, and market forces will contribute to a
gradual resumption of sustainable economic growth in a context
of price stability.

"The prices of energy and other commodities have risen of
late. However, substantial resource slack is likely to dampen
cost pressures, and the Committee expects that inflation will
remain subdued for some time.

"In these circumstances, the Federal Reserve will employ
all available tools to promote economic recovery and to
preserve price stability. The Committee will maintain the
target range for the federal funds rate at 0 to 1/4 percent and
continues to anticipate that economic conditions are likely to
warrant exceptionally low levels of the federal funds rate for
an extended period.

"As previously announced, to provide support to mortgage
lending and housing markets and to improve overall conditions
in private credit markets, the Fed will purchase a total of up
to $1.25 trillion of agency mortgage-backed securities and up
to $200 billion of agency debt by the end of the year. In
addition, the Fed is in the process of buying $300 billion of
Treasury securities. To promote a smooth transition in markets
as these purchases of Treasury securities are completed, the
Committee has decided to gradually slow the pace of these
transactions and anticipates that the full amount will be
purchased by the end of October. The Committee will continue to
evaluate the timing and overall amounts of its purchases of
securities in light of the evolving economic outlook and
conditions in financial markets. The Fed is monitoring the size
and composition of its balance sheet and will make adjustments
to its credit and liquidity programs as warranted."

* NEW YORK FED PRESIDENT WILLIAM DUDLEY, JULY 29:

"Credit availability will be constrained for some time to
come, and this will serve to limit the pace of the recovery.

"If the recovery does, in fact, turn out to be lackluster,
the unemployment rate is likely to remain elevated and capacity
utilization rates unusually low for some time to come. This
suggests that inflation will be quiescent."

* SAN FRANCISCO FED PRESIDENT JANET YELLEN, JULY 28:

"We glimpse the first solid signs that economic growth may
be poised to resume. Indeed, I expect that to happen some time
this year. ... A gradual recovery means that things won't feel
very good for some time to come."

"I can assure you that we will act decisively and
appropriately to tighten the stance of monetary policy and
maintain price stability."

* FED CHAIRMAN BEN BERNANKE, JULY 26:

"I was not going to be the Federal Reserve chairman who
presided over the second Great Depression."

"Once the economy starts to grow, and begins to move ahead,
it will be very important for the Fed to start to unwind, to
raise interest rates."

DALLAS FED PRESIDENT RICHARD FISHER, JULY 23:

"We're going to have a slower rate of growth as we get a
realignment between consumption and savings, between how the
labor force is redeployed, for a new gearbox to be determined
and then for the gears to mesh."

"You don't necessarily have to have a double dip
(recession). The question is at what rate will you grow
afterwards. We're used to a rate of growth at was driven by
excessive leverage."

* FED CHAIRMAN BEN BERNANKE, JULY 21:

"Accommodative policies will likely be warranted for an
extended period. At some point, however, as economic recovery
takes hold, we will need to tighten monetary policy to prevent
the emergence of an inflation problem down the road. The FOMC
... has devoted considerable time to issues relating to an exit
strategy. We are confident we have the necessary tools to
withdraw policy accommodation, when that becomes appropriate,
in a smooth and timely manner."
(Reporting by Ros Krasny; Editing by Leslie Adler)