QE3 among Fed's remaining bullets, Dudley says

"I don't think the Fed has run out of bullets," said New York Federal Reserve President William Dudley, listing the large-scale asset purchases, known as quantitative easing, as one of a few moves the Fed could make.

"It's possible that we could do another round of quantitative easing, we could do quantitative easing round three," he told the Bronx Chamber of Commerce.

Dudley also listed a commitment to low interest rates for a longer period, and a change in the way the central bank does monetary policy that would commit it to stimulus for a longer period, as other possible bullets in the chamber.

"There are a number of things we could do to provide greater stimulus but there are costs associated with each of them," he said.

Faced with the worst recession in decades, the Fed in late 2008 cut rates to near zero and has since bought $2.3 trillion in bonds to spur a recovery. The two rounds of easing, known as QE1 and QE2, were unprecedented and controversial because the economic rebound has been weak and plagued by high unemployment.

(Reporting by Jonathan Spicer, Editing by Chizu Nomiyama)