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.

"My idea of being predictable is on the one hand to use benchmarks ... but also to provide information to the public what our outlook is, what our forecast is, how we see the risks and how we plan to respond.

"That communication, and providing adequate information, is really the only way to be adequately predictable in a world of uncertainty," Bernanke said.

"Intuition suggests that stronger action by the central bank may be warranted to prevent particularly costly outcomes."

*ST LOUIS FED PRESIDENT BILL POOLE, OCT. 19

"I think that, given the information set that we have, we are approximately in the right place," Poole told Reuters in an interview in St. Louis.

"If I thought that we were way off the right place, what evidence would I offer? Well, I think the market would be looking at the same thing that I'm looking at, and then we wouldn't be there, we'd be in a different place," he said.

"If you are going to favor a cut, you are going to say, not only do I think a cut is appropriate now, but with high probability I'm not going to regret that decision," he said.

"I want to be sure that if I turn out to favor lower rates, which I might, I don't know where I stand on this ... this is part of a regularity of policy behavior," he said.

"We are in a situation of unusual uncertainty because we have this market upset and we don't know how far along the healing process is ... It is not exactly business as usual."

PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, OCT. 18

"Simple rules may be useful, and could be useful in communication, in communicating key aspects about policy," Plosser told a conference sponsored by the St. Louis Fed.

"Behavior governed by simple rules is easier to monitor, it is easier to communicate and I think this contributes to an open and transparent way of conducting monetary policy."

CLEVELAND FED PRESIDENT SANDRA PIANALTO, OCT. 18

"The uncertainty around the outlook today is very high," Pianalto said after addressing the Ohio Grantmakers Forum.

"It's not clear how the financial market disruptions that we've seen are going to affect economic growth ... so ... we are waiting and learning," she said.

*KANSAS CITY FED PRESIDENT THOMAS HOENIG, OCT. 17

"The question that one asks is what are the implications for policy and the answer to that is obvious and is 'wait and see'. Because it depends on how all these factors play out," Hoenig told a dinner audience in Tulsa.

"The U.S. economy has got a lot going for it. For example, the fact that we have already eased policy is a positive factor for the real economy. Secondly, the rest of the world is still growing strongly and demand for U.S. goods is strong.

"Consumers are still buying, unemployment is low, we are still adding jobs in a very dynamic U.S. economy," he said.