A third round of Treasurys purchase is not necessary unless the U.S. economy deteriorates further, according to James Bullard, president of St Louis Federal Reserve Bank.
Recent economic data have signaled that the U.S. economy is doing better than economists think, Bullard told CNBC Tuesday, and a third round of bond buying by the Fed - in a program known as quantitative easing , or QE - is not needed.
"I think QE3 would require the economy to deteriorate somewhat from where it is right now," Bullard said. "The basic story on the U.S. economy is that we've had good news over the last six months or so, especially compared to the recession scenario that was being painted in the August-September time period of last year."
The Fed has bought $2.3 trillion in bonds and kept rates near zero since December 2008 to stimulate growth. At its March 13 meeting, the Fed reiterated that it would keep ratesnear zero through late 2014 because of the lackluster economy.
A third round of bond buying may be in the works, according to Bill Gross, manager of the world's largest bond fund at PIMCO. He posted on Twitter Sunday that he expects the Fed to signal during its April meeting that more stimulus will be needed for the U.S. economy.
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