Bullard urges FOMC purchase Treasuries if deflation risk grows
By Diana Golobay

Federal Reserve Bank of St. Louis President James Bullard said the central bank should resume purchases of Treasury securities if the economy slows and prices fall rather than maintain a pledge to keep rates near zero.

"The US is closer to a Japanese-style outcome today than at any time in recent history," Bullard said, warning in a research paper released today about the possibility of deflation.