If the fiscal cliff occurs, I don't think the Federal Reserve has the tools to offset that event.

There are limits to monetary policy.

Indeed, in general, healthy investment returns cannot be sustained in a weak economy, and of course it is difficult to save for retirement or other goals without the income from a job.

Monetary policy is not a panacea.

The crisis in Europe has affected the U.S. economy by acting as a drag on our exports, weighing on business and consumer confidence, and pressuring U.S. financial markets and institutions.

The crisis and recession have led to very low interest rates, it is true, but these events have also destroyed jobs, hamstrung economic growth and led to sharp declines in the values of many homes and businesses.

Well, optimism's a good thing. It - makes people go out and - you know, start businesses and spend and do whatever is necessary to get the economy going.

The Fed is totally open.

Investment banks manage to go bankrupt through their investment-banking activities, commercial banks manage to go bankrupt through their commercial-banking activities.

I generally leave the details of fiscal programs to the Administration and Congress. That's really their area of authority and responsibility, and I don't think it's appropriate for me to second guess.

Well, the U.S., of course, is the world's largest economy. It's about a quarter of the world's output. It's also home to many of the largest financial institutions and financial markets.

Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.

In fact, the world needs more nerds.

I am very proud of my nerd-dom.

It must be awfully frustrating to get a small raise at work and then have it all eaten by a higher cost of commuting.

The central bank needs to be able to make policy without short term political concerns.

The tax code is very inefficient. Both the personal tax code and the corporate tax code. By closing loopholes and lowering rates, you could increase the efficiency of the tax code and create more incentives for people to invest.

It takes about two and a half percent growth just to keep unemployment stable.

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

The American people are among the most productive in the world. We have the best technologies. We have great universities. We have entrepreneurs.

I've never been on Wall Street. And I care about Wall Street for one reason and one reason only because what happens on Wall Street matters to Main Street.

The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.

The economist John Maynard Keynes said that in the long run, we are all dead. If he were around today he might say that, in the long run, we are all on Social Security and Medicare.

In the future, my communications with the public and with the markets will be entirely through regular and formal channels.