FRANKFURT — St. Louis Federal Reserve President James Bullard said Tuesday there will not be a good case for reducing the U.S. Fed's quantitative easing program until inflation begins to rise towards the Fed's target.

While Bullard sounded optimistic on the U.S. economy — maintaining his forecast of 3% GDP growth this year — he noted that inflation has remained stubbornly below the Fed's 2% target, and thus remains his primary reason to favor keeping the Fed's $85 billion asset purchase program in place for the time being.

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