FACTBOX: Fed policymakers' recent comments

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

* Denotes 2007 voting member of the Federal Open Market Committee, which sets U.S. monetary policy.

FOMC STATEMENT, OCT. 31:

"Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance. However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction. Today's action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time.

"Readings on core inflation have improved modestly this year but recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and will continue to monitor inflation developments carefully.

"The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."

*FED BOARD GOVERNOR FREDERIC MISHKIN, OCT. 26

"Although market functioning has certainly not yet returned to normal, and while it is still too early to judge their ultimate success, these actions, along with the policy easing decided at the September meeting, have helped improve conditions in several short-term funding markets."

*CHICAGO FED PRESIDENT CHARLES EVANS, OCT. 22

"We cannot afford to be lax on the inflation front."

Still, risks remain that housing demand and prices "could weaken a good deal more than we expect," pulling consumer spending down as well, he said.

"If in fact the more likely scenario unfolds, in which conditions improve and risks recede, then policy should be prepared to respond to any developments that threaten the inflation outlook."

*FED BOARD GOVERNOR RANDALL KROSZNER, OCT. 22

"In the months ahead, the Federal Reserve will continue to monitor developments in the financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability," Kroszner told the Institute of International Bankers.

*FED CHAIRMAN BEN BERNANKE, OCT. 19

"Predictability is critical in building credibility. It is critical in reducing uncertainty, in making long-term interest rates respond in appropriate directions to Fed actions," he told a conference in St. Louis.