Fed’s Bullard says QE2 could be cut by some $100 billion

PRAGUE (Reuters) – The U.S. Federal Reserve’s $600 billion asset purchase program could be trimmed by some $100 billion given the strength of the U.S. economy, St. Louis Federal Reserve President James Bullard said on Tuesday.

He said there seemed to be difference of opinion in the Fed on the speed of reversing monetary easing.

“I think it could be on the order of $100 billion less than what we had initially thought, but I would leave that up to how the rest of the committee would want,” Bullard told reporters on the sidelines of an economic conference in Prague.

He said he preferred a way of tapering off asset purchases, then stopping them for a couple of months and keeping the balance sheet steady before taking further measures.

(Reporting Jan Lopatka and Michael Winfrey)

Fed’s Bullard says QE2 could be cut by some $100 billion