CHICAGO, May 20 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.
* FED VICE CHAIRMAN DONALD KOHN, MAY 20:
"With the information now in hand, it is my judgment that
monetary policy appears to be appropriately calibrated for now
to promote both rising employment and moderating inflation over
the medium term. But a large measure of uncertainty surrounds
that judgment and as the economy evolves, so will the
appropriate stance of monetary policy."
ATLANTA FED PRESIDENT DENNIS LOCKHART, MAY 17:
"We expect inflation to abate somewhat in the second half
and going into 2009 based upon our forecast of weak economic
growth; clearly in the first half, improving in the second half
but generally a below-trend, below potential course of economic
growth in this country."
NEW YORK FED VICE PRESIDENT WILLIAM DUDLEY, MAY 15:
"It will take time for market function to return to normal.
The reintermediation and deleveraging process has, in my view,
a considerable ways to go. The Federal Reserve is committed to
supplying liquidity to banks and primary dealers as needed to
ensure an orderly adjustment."
* FED CHAIRMAN BEN BERNANKE, MAY 15:
"I strongly urge financial institutions to remain proactive
in their capital-raising efforts. ... Doing so not only helps
the broader economy but positions firms to take advantage of
new profit opportunities as conditions in the financial markets
and the economy improve."
SAN FRANCISCO FED PRESIDENT JANET YELLEN, MAY 14:
"The 1970s were a horrible period. If there's one thing
that has to be very high priority, we don't want to go back to
a period that is anything like that.
"Monetary policy sometimes entails trade-offs. Sometimes
the fed funds rate may not be able to achieve all you want."
BOSTON FED PRESIDENT ERIC ROSENGREN, MAY 14:
"While most of the turmoil in financial markets occurred
during relatively benign macroeconomic conditions, the economic
situation has changed."
CHICAGO FED PRESIDENT CHARLES EVANS, MAY 13:
"The level of uncertainty regarding future developments
continues to be high and the path forward may be uneven. We
must keep this in mind as we evaluate the outlook."
KANSAS CITY FED PRESIDENT THOMAS HOENIG, MAY 13:
"Our big challenge will be to make sure that we bring
inflation in check and make sure that we do not report some of
the experiences we had in the late '70s and early '80s when
inflation became far too high."
SAN FRANCISCO FED PRESIDENT JANET YELLEN, MAY 13:
"I consider the current level of monetary accommodation to
be appropriate. That, together with the fiscal package, should
be sufficient to promote a gradual step-up to moderate economic
growth later this year. Likewise, I would expect that inflation
will moderate in coming quarters, as more slack in labor and
product markets emerges and as commodity prices level off."
* DALLAS FED PRESIDENT RICHARD FISHER, MAY 13:
"I'm not sure how deep the economic slowdown will be. ...
There still is growth in the world economy, even if we do slow
down. It's difficult for me to see a supply response that will
feed into that demand to relieve the price pressures we see on
* CLEVELAND FED PRESIDENT SANDRA PIANALTO, MAY 13:
"The core price measures in the United States are rising
somewhat faster than I would prefer, and inflation presents a
key risk to my outlook.
"The substantial easing of monetary policy to date,
combined with ongoing measures to foster market liquidity,
should help to promote growth over time and to mitigate risks
to economic activity."
CHICAGO FED PRESIDENT CHARLES EVANS, MAY 12:
"The current net stance of monetary policy is accommodative
-- and this is appropriate in order to address the way we
currently see the sluggish economy unfolding ... the real fed
funds rate is close to zero or perhaps slightly negative.
"Conditions will improve in the second half of this year,
but not enough to prevent economic activity from still running
at a relatively sluggish pace."
KANSAS CITY FED PRESIDENT THOMAS HOENIG, MAY 6:
"A sharp slowdown in growth has put the economy at the
brink of a recession while, at the same time, rising commodity
prices have caused inflation pressures to rise considerably.
"If inflation gets too high, the economy will suffer
"The current accommodative stance should be sufficient to
cushion the economy from a deeper slowdown and the risks that
financial disruptions could spill over to the broader economy.
"As the economy recovers and credit conditions improve,
however, it will be necessary for the Federal Reserve to remove
the policy accommodation in a timely manner."
* FEDERAL RESERVE CHAIRMAN BEN BERNANKE, MAY 5:
"High rates of delinquency and foreclosure can have
substantial spillover effects on the housing market, the
financial markets and the broader economy.
"Finding ways to avoid preventable foreclosures is a
legitimate and important concern of public policy."
(Reporting by Ros Krasny; Editing by Leslie Adler)