Fed in no rush to cut bond buys, top policymakers say

WASHINGTON/SAN FRANCISCO (Reuters) - The Federal Reserve should scale back its asset purchase program only when the U.S. economy improves and even then only slowly, one senior U.S. central banker said on Monday. The two Fed officials, St. Louis Federal Reserve Bank President James Bullard and Federal Reserve Board Governor Jerome Powell, did not say exactly when they believe the Fed will begin withdrawing stimulus, a question that is at the forefront of many investors' minds. But their comments underscored Fed Chairman Ben Bernanke's repeated promise that the U.S. central bank will not reduce stimulus according to a set timeline, but rather in response to economic developments. The Fed should also "hold to our obligation to only do that as demand does strengthen in the United States," he said.

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