CHICAGO, Nov 14 (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.
* CLEVELAND FED PRESIDENT SANDRA PIANALTO, NOV 14:
'At the moment, the signs point to a recession beyond just a 'garden variety' downturn. The length and severity of the recession will depend on how quickly credit markets return to normal.'
* FED CHAIRMAN BEN BERNANKE, NOV 14:
'The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain. For this reason, policy-makers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant.'
* MINNEAPOLIS FED PRESIDENT GARY STERN, NOV 13:
'We have seen some important progress in recent weeks in funding markets. ... That said, significant strains continue in some markets and among financial institutions.
'Overall, credit has become more expensive and less available now than it was a few months ago. We should be under no illusions -- it will probably take some time for normalcy to return.'
* PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, NOV 13:
'There are all sorts of technical ramifications when the fed funds rate goes toward zero. There are a lot of questions we're going to have to grapple with going forward. You have to think about what this means for policy, market functioning, how we manage reserves.'
* FED VICE CHAIRMAN DONALD KOHN, NOV 12:
'Although we have seen signs of improvement, financial market functioning remains impaired in many ways, and we will need to reconsider whether additional steps are needed to reopen credit flows and support the economy.'
ATLANTA FED PRESIDENT DENNIS LOCKHART, NOV 7:
'Now is not a time to be tentative. The U.S. economy in September and October appeared to weaken dramatically ... problems are now broad-based.
'I foresee substantial weakness at least through the first half of 2009. This weakness will exacerbate the employment picture. In my outlook, unemployment will rise some more.'
* FED GOVERNOR KEVIN WARSH, NOV 6:
'Prospects for robust economic growth over the intermediate term are likely to be determined, not principally by the trajectory of housing prices, but by the speed with which a new financial architecture emerges.
'Bold official policy responses, even when successful in combating financial instability, may not be enough to support the resumption of trend economic growth over the medium term.'
* DALLAS FED PRESIDENT RICHARD FISHER, NOV 4:
'There are limits to what the central bank can do. Our efforts must be complemented by fiscal policy.
'The credit crisis has reached up and clutched the throat of the economy. I expect no growth and maybe some negative numbers in the last quarter and throughout 2009.'
* DALLAS FED PRESIDENT RICHARD FISHER, NOV 3:
'I think we might see some negative numbers in terms of headline inflation for a couple of months. That does not mean we are in a sustained deflationary trend.'
SAN FRANCISCO FED PRESIDENT JANET YELLEN, OCT 30:
'For the fourth quarter it appears that the economy is contracting significantly ... the mortgage meltdown is far from over, the economy and financial markets are still reeling from it.'
The Federal Reserve's benchmark lending rate 'could potentially ... go a little lower.'
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.'
(Reporting by Ros Krasny; Editing by Leslie Adler) Keywords: USA FED/COMMENTS (Ros.Krasny@thomsonreuters.com; +1 312 408 8592; Reuters Messaging: ros.krasny.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Denotes 2008 voting member of the Federal Open Market Committee, which sets U.S. monetary policy.
* CLEVELAND FED PRESIDENT SANDRA PIANALTO, NOV 14:
'At the moment, the signs point to a recession beyond just a 'garden variety' downturn. The length and severity of the recession will depend on how quickly credit markets return to normal.'
* FED CHAIRMAN BEN BERNANKE, NOV 14:
'The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain. For this reason, policy-makers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant.'
* MINNEAPOLIS FED PRESIDENT GARY STERN, NOV 13:
'We have seen some important progress in recent weeks in funding markets. ... That said, significant strains continue in some markets and among financial institutions.
'Overall, credit has become more expensive and less available now than it was a few months ago. We should be under no illusions -- it will probably take some time for normalcy to return.'
* PHILADELPHIA FED PRESIDENT CHARLES PLOSSER, NOV 13:
'There are all sorts of technical ramifications when the fed funds rate goes toward zero. There are a lot of questions we're going to have to grapple with going forward. You have to think about what this means for policy, market functioning, how we manage reserves.'
* FED VICE CHAIRMAN DONALD KOHN, NOV 12:
'Although we have seen signs of improvement, financial market functioning remains impaired in many ways, and we will need to reconsider whether additional steps are needed to reopen credit flows and support the economy.'
ATLANTA FED PRESIDENT DENNIS LOCKHART, NOV 7:
'Now is not a time to be tentative. The U.S. economy in September and October appeared to weaken dramatically ... problems are now broad-based.
'I foresee substantial weakness at least through the first half of 2009. This weakness will exacerbate the employment picture. In my outlook, unemployment will rise some more.'
* FED GOVERNOR KEVIN WARSH, NOV 6:
'Prospects for robust economic growth over the intermediate term are likely to be determined, not principally by the trajectory of housing prices, but by the speed with which a new financial architecture emerges.
'Bold official policy responses, even when successful in combating financial instability, may not be enough to support the resumption of trend economic growth over the medium term.'
* DALLAS FED PRESIDENT RICHARD FISHER, NOV 4:
'There are limits to what the central bank can do. Our efforts must be complemented by fiscal policy.
'The credit crisis has reached up and clutched the throat of the economy. I expect no growth and maybe some negative numbers in the last quarter and throughout 2009.'
* DALLAS FED PRESIDENT RICHARD FISHER, NOV 3:
'I think we might see some negative numbers in terms of headline inflation for a couple of months. That does not mean we are in a sustained deflationary trend.'
SAN FRANCISCO FED PRESIDENT JANET YELLEN, OCT 30:
'For the fourth quarter it appears that the economy is contracting significantly ... the mortgage meltdown is far from over, the economy and financial markets are still reeling from it.'
The Federal Reserve's benchmark lending rate 'could potentially ... go a little lower.'
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.'
(Reporting by Ros Krasny; Editing by Leslie Adler) Keywords: USA FED/COMMENTS (Ros.Krasny@thomsonreuters.com; +1 312 408 8592; Reuters Messaging: ros.krasny.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.