More Q&A comments from Fed St Louis President...>

FED: More Q&A comments from Fed St Louis President Bullard, speaking at MNI

event in Tokyo...

- On the neutral rate: For policy purposes, you should assume that it stays low,

since it has been in a 30-year downtrend - why would it suddenly change? Should

assume that it will stay low on a two-year horizon. Baseline assumption should

not be that it will revert to the mean.

- On price level / nominal GDP targeting: Unlikely to be adopted in the

near-term. Inflation targeting may not be perfect, but has worked well, and

alternative targets may not be of much greater benefit. If you have gotten 90%

of the benefit, an additional 10% improvement may not be worth the potential

confusion.

- On IOER / Fed Funds range: No decisions made at last meeting, but deciding on

how to deal with Funds rate trading at high end of range. Any decision would be

a technical adjustment, not meant to be a change in policy.

- On terminal size of the balance sheet: No final decisions.