HONG KONG - Atlanta Federal Reserve Bank President Dennis Lockhart said Tuesday that a third round of "quantitative easing" could not be ruled out but that conditions at the moment were not right.

"QE3 will work under the right circumstances, but I don't think circumstances prevail at the moment," he told the Institute of Regulation and Risk North Asia in Hong Kong.

Lockhart said risks to the US economy were modestly to the downside at the moment because of the potential spillover effect of the European debt crisis.

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