James Bullard, President of the St. Louis Federal Reserve Bank, speaks during an interview with Reuters in Boston, Massachusetts August 2, 2013. Bullard said on Friday that the U.S. economy is improving modestly but needs to gather more steam, while inflation remained too low for comfort, underscoring the debate within the central bank over when to scale back stimulus. REUTERS/Brian Snyder  (UNITED STATES - Tags: BUSINESS) - RTX128AB

James Bullard, President of the St. Louis Federal Reserve Bank, speaks during an interview with Reuters in Boston, Massachusetts August 2, 2013. Bullard said on Friday that the U.S. economy is improving modestly but needs to gather more steam, while ... inflation remained too low for comfort, underscoring the debate within the central bank over when to scale back stimulus. REUTERS/Brian Snyder (UNITED STATES - Tags: BUSINESS) - RTX128AB (Reuters)

Bullard: Risk of Upside Inflation in U.S.

Politics Reuters

Federal Reserve policymaker James Bullard said on Tuesday the "boom time" in the United States economy was creating the possibility that inflation could surprise on the upside.

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"With the U.S. economy expected to be going into a boom time there is some upside risk to inflation," Bullard said during a panel discussion at London City Week.

He added that policymakers and economists should not "go to sleep" and ignore the risks of a rise in inflation.

(Reporting by Marc Jones; editing by John Stonestreet)