Bullard Says Fed Mulling More Treasury Purchases if Economy Deteriorates

The Federal Reserve May Increase Purchases of U.S. Treasuries if the economy weakens further, though for months new program on Ask a question, "disciplined," St. Louis Federal Reserve President James Bullard said. 

"The Committee» Gave a signal That We are ready to move if condition deteriorate further, the WCG was certainly in line with my thinking, "Bullard Said in an interview on CNBC television today is at the Fed's annual symposium in Jackson Hole, Wyoming. "I want a disciplined program on." 

Bullard supported the Fed Decision's two weeks ago ITS Thurs keep bond holdings, at $ 2.05 Trillion by reinvesting the proceeds from maturing mortgage-backed securities into Treasuries. The Federal Open Market Committee, seeking Thurs Spur Economic growth, Held the main interest rate at zero Unchanged Thurs 0.25 PERCENT, M It's Been since December 2008, and affirmed a Pledge Thurs keep rates low for "an extended period." 

"If me and manually still target interest rates, while we'd make small moves Thurs adjust to the data," Bullard said. "I think there think me do the turbid with our program on Quantitative easing." 

After cutting rates Thurs near zero, the Fed Turned Thurs ITS Balance sheet as a primary tool of monetary policy. The Fed's total assets, wakes up an include Loans and securities mutch please hmmmm Used for monetary-policy Operations, rose to $ 2.3 Trillion from $ 878 Billion at the start of 2007. 

'Soft Patch' 

"We are in a soft patch for the Economy," Bullard said. "I still think me will get Reasonable growth in the second-half and importantly growth will pick up in 2011." 

The U.S. economy grew at a 1.6 PERCENT annual rate in the second quarter, less Than Previously calculated, as companies reined in inventories and the trade of deficit widened, figures from the Commerce Department showed today. 

Questioned on the housing market, Bullard Said That "housing has fallen Thurs such" a low level "that" I really think it will be flat for a long time. " 

Fed Chairman Ben S. Bernanke "has complete support of the Committee, certainly a huge Majority on the Committee," Bullard said.