compensation structures led to misaligned incentives and excessive risk taking, contributing to bank losses and financial instability.

If no action is taken on January 1, 2013, between expiration of tax cuts, sequestration, and a number of other measures, there will be a very sharp change in the fiscal stance of the Federal Government, which by itself with no compensating…

I think we are the premier economy, we are the safe haven, we have a strong interest in maintaining that status.

I think it is important for me to say that if Congress is being lulled, they should not be lulled.

Yes, I think a very substantial additional tack on the deficits is needed.

I appreciate this opportunity to discuss my views on the economic outlook, monetary policy, and the challenges facing federal fiscal policymakers.

If you determine that you want to change it, we will, of course, do whatever you assign us to do.

I do not think many people, including many good friends of mine on both sides of the aisles, would argue that tax cuts fully pay for themselves.

What we need is an armistice between Republicans and Democrats to solve this problem.

We need to make sure that the recovery continues and doesn't drop back and that unemployment rate continues to fall.

I have great sympathy for you. These are very, very difficult problems. They involve very fundamental questions of what the government should do and how big it should be.

Monetary policy can be a powerful tool, but it is not a panacea for the problems currently facing the U.S. economy.

I think we need to have open and fair trade.

Fiscal policy is of critical importance, as I have noted today, but a wide range of other policies--pertaining to labor markets, housing, trade, taxation, and regulation, for example--also have important roles to play.

we should continue to press for a more flexible exchange rate.

You can take policy actions which are supportive of recovery, and that would involve perhaps not doing sharp near-term cuts.

I strongly support efforts to put our fiscal policy back on a long-term sustainable path.

Fostering healthy job growth and job creation--economic growth and job creation is a shared responsibility of all economic policymakers in close cooperation with the private sector.

clearly this is an issue that we have to address, and it is not something that can wait 10 years.

There is ample room for debate about the appropriate size and role for the government in the longer term, but--in the absence of adequate demand from the private sector--a substantial fiscal consolidation in the shorter term could add to…

We need to make sure people have technical skills, because technological change has been one place where a lot of people are getting left behind.

Greater scope for market forces to determine the value of the RMB would reduce an important distortion in the Chinese economy.

I disagree. With so many Americans out of work, and with GDP growth having slowed to less than half of one percent annual rate in the first half of this year, additional actions are needed to strengthen the economy.

As I have said often before, I am in favor of the law of arithmetic.

The brinkmanship of the summer... was a negative for the financial markets.