Bullard Says Fed Would Consider More Action If Economy Worsens

Federal Reserve Bank of St. Louis James Bullard
Federal Reserve Bank of St. Louis James Bullard said, “I don’t think we can look at any more extension of operation twist beyond the end of this year.” Photographer: Scott Eells/Bloomberg

Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank would consider more stimulus if the economy slows significantly.

“If things slow down a lot more and the U.S. economy looked like it was going back into recession or there were risks of deflation then we would consider more action,” Bullard told reporters in London today. “But I don’t think we’re at that juncture.”

Bullard added that inflation rates in the U.S. are “around target” and the situation isn’t similar to that of 2010.

“I don’t think we can look at any more extension of operation twist beyond the end of this year,” Bullard added.

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