Fed member wants more data before slowing stimulus

Federal Reserve building in Washington
Karen Bleier/AFP/Getty Images

WASHINGTON James Bullard, a voting member of the Federal Reserve, says the Fed should review more economic data before deciding whether to reduce its bond purchases.

The president of the Federal Reserve Bank of St. Louis said during a speech in Boston that he understands why some believe economic growth will pick up later this year. But he said previous forecasts for improvement have proven premature.

Bullard has expressed concerns that inflation remains too low to begin reducing the $85 billion a month in bond purchases, which have kept long-term interest rates low to encourage more borrowing and spending.

His comments came shortly after the government said job growth slowed in July. Many economists said the modest job figures could prompt the Fed to wait until December to slow the purchases.