Highlights of Bernanke's Speech

Following are some of the notable quotes from a speech Federal Reserve Chairman Ben Bernanke delivered Friday at the Kansas City Fed's Economic Symposium in Jackson Hole, Wyo.:

---

"The Federal Reserve stands ready to take additional actions as needed to provide liquidity and promote the orderly functioning of markets."

---

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions. But developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy."

---

"The incoming data indicate that the economy continued to expand at a moderate pace into the summer, despite the sharp correction in the housing sector. However, in light of recent financial developments, economic data bearing on past months or quarters may be less useful than usual for our forecasts of economic activity and inflation."

"Consequently, we will pay particularly close attention to the timeliest indicators, as well as information gleaned from our business and banking contacts around the country. Inevitably, the uncertainty surrounding the outlook will be greater than normal, presenting a challenge to policymakers to manage the risks to their growth and price stability objectives. The [policymaking Federal Open Market] Committee continues to monitor the situation and will act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets."

---

"Obviously, if current conditions persist in mortgage markets, the demand for homes could weaken further, with possible implications for the broader economy. We are following these developments closely."

Bernanke's entire remarks can be found by clicking here.