Bullard says Fed policy to stay easy despite exit chatter

Fri Feb 22, 2013 6:33pm IST

President and CEO of the Federal Reserve Bank of St. Louis James Bullard poses during an interview at the Federal Reserve Bank of St. Louis June 8, 2011. REUTERS/Peter Newcomb/Files

President and CEO of the Federal Reserve Bank of St. Louis James Bullard poses during an interview at the Federal Reserve Bank of St. Louis June 8, 2011.

Credit: Reuters/Peter Newcomb/Files

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REUTERS - The U.S. Federal Reserve will keep its loose monetary policy stance for a long while despite increasing signs of concern among policymakers about the potential costs of asset buying, a top Fed official said.

"Fed policy is very easy and it's going to stay easy for a long time, I think," James Bullard, St. Louis Fed president, said in an interview with CNBC television.

Bullard said Fed policy has actually become more aggressive because outright purchases of Treasuries are more powerful than a previously existing maturity expansion program that did not involve balance sheet expansion.

He argued the economy could grow as much as 3 percent this year now that some of the key risks to the global economy, like the fiscal cliff or the prospect of a euro zone break-up, had receded.

(Reporting By Pedro Nicolaci da Costa; Editing by Chizu Nomiyama; Editing by Chizu Nomiyama)

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