Factbox: Fed policy-makers' recent comments

NEW YORK (Reuters) - The following is a summary of recent comments by Fed policy-makers:

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

FOMC STATEMENT, JUNE 25:

"Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters.

"The Committee expects inflation to moderate later this year and next year. However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.

"The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time. Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability."

* FED VICE CHAIRMAN DONALD KOHN, JUNE 19:

"The markets are in a lot better shape than they were in March, but having said that, I don't think anyone can guarantee what's going to happen next."

"I would expect that we would see a gradual improvement in financial markets, that our institutions are taking steps to make that possible, but there are no guarantees."

RICHMOND FED PRESIDENT JEFFREY LACKER, JUNE 16:

"Inflation is unacceptably high... Inflation expectations are higher than I would like, but they are stable. The apparent stability of inflation does not justify complacency, however. Just as easing policy aggressively in response to emerging downside risks made sense, withdrawing some of that stimulus as those risks diminish makes eminent sense as well."

* FED CHAIRMAN BEN BERNANKE, JUNE 16:

"There are limits to how big the deficit and debt can be. Soon it will begin to have effects on interest rates, it will have effects on economic growth, and on stability."

ST LOUIS FED PRESIDENT JAMES BULLARD, JUNE 11:

"The probability of a very bad outcome from the financial crisis is receding and we've still got the low level of interest rates that we took out during that time period. I see there being some inflationary consequences of that if we don't take action and stay on top of this situation.

"Policy can begin to address pressing inflationary concerns during the remainder of the year."

* DALLAS FED PRESIDENT RICHARD FISHER, JUNE 10:

"We want to make sure the message is clear ... that we will not countenance building inflationary expectations.

"We are witnessing a negative feedback loop ... which is that a weaker dollar can lead to further inflationary pressures which in turn leads to a weaker dollar, et cetera, and to dampened economic activity."

* FED CHAIRMAN BEN BERNANKE, JUNE 9:

"Indeed, although activity during the current quarter is likely to be weak, the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so ... the latest round of increases in energy prices has added to the upside risks to inflation and inflation expectations. The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations, as an unanchoring of those expectations would be destabilizing for growth as well as for inflation."

* NEW YORK FED PRESIDENT TIMOTHY GEITHNER, JUNE 9:

"Shock absorbers held in normal times against bad macroeconomic and financial outcomes" needed to be increased, he wrote in an Op-Ed piece in the Financial Times entitled, "We can reduce risk in the financial system."

"This will require more exacting expectations on capital, liquidity and risk management for the largest institutions that play a central role in intermediation and market functioning."

ST LOUIS FED PRESIDENT JAMES BULLARD, JUNE 6:

"Given the current economic environment and the outlook for the next 18 months, my view is that policy is appropriately calibrated at this time."

"After a 10-month period in which the dominant policy concern has rightly been the state of financial markets, policy can begin to address pressing inflationary concerns during the remainder of the year."

* FED BOARD GOVERNOR RANDALL KROSZNER, JUNE 6:

"Strains continue to result in restrictive conditions for home-mortgage borrowers."

"New originations are being held in lenders' portfolios, pressuring their balance sheets and, for example, leaving the spread between interest rates offered on jumbo and conforming mortgages very high."

* PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, JUNE 5:

"Policy interventions in financial markets run the risks of increasing moral hazard and inhibiting efficient price discovery. Moreover, interventions intended to quell instability can, by creating moral hazard, actually make instability more severe in the long run."

"Specifying in advance the conditions or states of the world under which the central bank will lend is an essential first step."

* FED VICE CHAIRMAN DONALD KOHN, JUNE 5:

"The housing market bottom isn't here yet. Prices are continuing to fall in many localities. As long as the housing market is on a downward path, there is a risk that the losses could continue to mount on a variety of loans."

"I think we have a stronger set of investment banks than we had a month and a half ago."

(Compiled by Reuters Fed team)