FACTBOX: U.S. Fed policymakers' recent comments

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

* Denotes 2008 voting member of the Federal Open Market Committee, which sets U.S. monetary policy.

FOMC STATEMENT, OCT 29:

"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports.

"Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.

"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 in coming quarters to levels consistent with price stability.

"Recent policy actions, including today's rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth.

"Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

* FED CHAIRMAN BEN BERNANKE, OCT 20:

"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate.

"The stabilization of the financial system, though an essential first step, will not quickly eliminate the challenges still faced by the broader economy."

* ATLANTA FED PRESIDENT DENNIS LOCKHART, OCT 20:

"We at the Atlanta Fed expect weakness to persist for some time into 2009 as credit markets gradually improve.

"With the deterioration in economic conditions and the recent associated falloff in energy and many other commodity prices, I anticipate further dissipation of inflationary pressures."

ST LOUIS FED PRESIDENT JAMES BULLARD, OCT 17:

"We're trying to keep a close eye on money creation and right now, inflation is contained."

CHICAGO FED PRESIDENT CHARLES EVANS, OCT 17:

"Unemployment rarely goes up this much without a recession following ... The housing market is a continuing strain, and we are experiencing disruptions in worldwide credit markets that are without precedent in the post-World War Two era."

* MINNEAPOLIS FED PRESIDENT GARY STERN, OCT 16:

"We should anticipate further declines in employment and softness in most components of demand for goods and services.

"In view of the scope and severity of the recent financial shock, the restraint on economic activity stemming from credit market headwinds could exceed the experience of the 1990s."

ST LOUIS FED PRESIDENT JAMES BULLARD, OCT 15:

"The third quarter, I think, will be flat to slightly negative. That is going to push up the probability that it will later be named a recession."

* FED CHAIRMAN BEN BERNANKE, OCT 15:

"By restricting flows of credit to households, businesses and state and local governments, the turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth.

"We will continue to use all the tools at our disposal to improve market functioning and liquidity, to reduce pressures in key credit and funding markets, and to complement the steps the Treasury and foreign governments will be taking to strengthen the financial system."

* FED VICE CHAIRMAN DONALD KOHN, OCT 15:

"The effects of the easier stance of policy on the cost and availability of credit were overwhelmed last week by the further erosion of confidence.

"I see the most probable scenario as one in which the performance of the economy remains subpar well into next year and then gradually improves in late 2009 and 2010."

SAN FRANCISCO FED PRESIDENT JANET YELLEN, OCT 14:

"The recent flow of economic data suggests that the economy was weaker than expected in the third quarter, probably showing essentially no growth at all. Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely. Indeed, the U.S. economy appears to be in a recession.

"By now, virtually every major sector of the economy has been hit by the financial shock."

ST LOUIS FED PRESIDENT JAMES BULLARD, OCT 14:

"Over-reliance on interest rate policy in this environment does little to solve the problems at hand and, in addition, may cause a new and difficult-to-solve inflation problem in the wake of the current turbulence."

* FED CHAIRMAN BEN BERNANKE, OCT 13:

"Our economy will not be able to function at its best unless and until financial market stability returns."

(Reporting by Ros Krasny)