Given the “slow recovery” in the economy, the Federal Reserve should make “continued measured efforts” to spur gross domestic and employment growth, but for now these should be confined to using Fed “communication” tools to reassure markets that interest rates will stay low, Federal Reserve Bank of Atlanta president Dennis Lockhart said Monday.

A third round of large-scale asset purchases or “quantitative easing” cannot be ruled out, given the “larger-than-normal risks” posed by the European debt crisis, but QE3 is not appropriate in current circumstances, Lockhart said in Tokyo.

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