June 27, 2012 / 10:34 PM / 6 years ago

Fed's Lockhart: not time for the bigger guns yet

Dennis Lockhart, President, Federal Reserve Bank of Atlanta, takes part in a panel discussion titled "Twist and Shout: The Limits of U.S. Monetary Policy" at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012. REUTERS/Danny Moloshok

WASHINGTON (Reuters) - The Federal Reserve would only likely launch another full-on round of bond buying if the economy took a turn for the worse or if Europe’s problems flared out of control, a top policymaker said on Wednesday.

“I don’t think the conditions have developed that require us to bring out bigger guns quite yet,” Atlanta Fed President Dennis Lockhart said in an interview with Nightly Business Report. Lockhart is a voter this year on the central bank’s policy-setting panel.

Another round of quantitative easing “is certainly an option,” he added. A dramatic slowing of growth, a wave of job layoffs, or falling prices that raise the specter of damaging deflationary spiral are all possible triggers for Fed action, he said.

Reporting By Mark Felsenthal; Editing by Sandra Maler

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