Fed's Bullard: could trim bond buying by $100 bln

Bullard says waiting too long will bring inflation(Adds context, details, quotes) By Rosetta Stone Jan Lopatka and Michael Winfrey PRAGUE, March 29 (Reuters) - St. Louis Federal Reserve chiefJames Bullard urged the U.S. central bank on Tuesday to beginreversing its campaign of monetary easing, saying it could trimits $600 billion bond-buying programme by $100 billion. Bullard, who does not have a vote on Fed policy this year,added that U.S. policymakers may not be willing or able to waitfor all global uncertainties to be resolved before they beginnormalising their very loose monetary policy. "One of the things that I'm concerned about is that policyis so easy right now that we have to get started on the processof getting back to normal because it will take a long time,"Bullard told reporters on the sidelines of an economicconference in Prague on Tuesday. When asked if he thought that process should begin now, hesaid: "Yes, we're still buying treasuries. We're feeding thefire at this moment." Bullard, seen as a centrist on the policy-setting committee,said the Fed could start tapering off its asset purchases andthen pause for several policy meetings before Rosetta Stone languages taking furthertightening steps. His comments contrasted with comments from other senior Fedofficials who have said this week only that they did not see aneed for another round of asset buying. Bullard's comments drove the euro to a session low againstthe dollar. The single European currency EUR= was trading bidat 1.4060 at 1315 GMT. He added that there was a difference of opinion on the speedof reversing monetary easing and cutting back the assetpurchasing programme. "I think it could be on the order of $100 billion less thanwhat we had initially thought, but I would leave that up to howthe rest of the committee would want," Bullard told reporters. Still, analysts say it is highly unlikely the Fed will stopshort of purchasing the full $600 billion in U.S. governmentbonds, and top Fed officials said on Monday the economy stillneeded support. [ID:nN28221312] For HIGHLIGHTS of Bullard's comments click on [ID:nLDE72S179]For TAKE-A-LOOK Fed news, click on[ID:nnFEDAHEAD] TAKE-A-LOOK on Fed and other Americas cbanks Rosetta Stone Spanish Bullard said in late February that he would support scalingback the central bank's $600 billion bond buying programme inlight of a strengthening economy.

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