LONDON - U.S. monetary policy is presently "appropriately calibrated", St. Louis Fed President James Bullard said Tuesday.
And Bullard ruled out any extension of Operation Twist beyond the end of the year, noting that the Fed is running out of balance sheet.
Speaking to reporters following an event at the Official Monetary and Financial Institutions Forum in London, Bullard said: "I do think it's appropriately calibrated for the situation."
Bullard stressed "the economy is weak, maybe there is downside risk but we have already taken all of that into account and on board -- that's why we have taken all the actions that we have."
He continued: "Those are all still on the books here. We have low interest rates, we still have a big balance sheet, operation Twist, we still have forward guidance -- all those things are still there".
"We have taken into account appropriately the entire situation," Bullard said.
Bullard also more or less ruled out any extension of Twist beyond the end of the year, saying: "Twist has been extended through the end of the year but we're running out of balance sheet -- there is a limited amount of short-term treasuries we can sell to buy long-term treasuries -- I don't think we can look at any more extension of Twist beyond the end of the year".
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