The Federal Reserve needs to wait and see more economic reports before deciding whether more easing or potential monetary policy tightening is needed, St. Louis Federal Reserve President James Bullard said during an interview with Bloomberg Radio.
Bullard, who said he sees the unemployment rate at 7.8% by the end of the year, noted that March's monthly employment report was just one "mediocre" report and not an immediate concern that would push the central bank toward further easing.
On Friday, the government said employers added 120,000 workers in March, well below the 203,000 economists had forecast. The unemployment rate dipped to 8.2% from 8.3% a month earlier.
The central bank is waiting for more data to confirm where the economy is headed before any future policy decisions are decided, he said during the interview.
Investors have been closely watching for any clues about whether the Fed will embark on more bond purchases, known as quantitative easing. Bullard isn't a voting member of the Federal Open Market Committee in 2012, but his comments are still analyzed to see what the Fed might be discussing.
Bullard is uncertain whether rates will stay exceptionally low until the end of 2014 as was projected in an official forecast from the Fed earlier this year. The central banker said he was uneasy about providing such an extended forecast since true economic conditions over the next three years are still so uncertain.
If economic conditions change dramatically, Bullard said he would not be afraid to change his forecast for when the central bank might tighten policy.
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