Fed's Hoenig-Deflation not a "large" possibility

KANSAS CITY Jan 7 (Reuters) - Deflation is not a "large possibility" in the United States, a senior Federal Reserve official said on Wednesday, and cautioned that inflation could resume its upward trend once the stimulus measures to jump-start the economy start to work.

"The first thing I tell people on deflation is obviously there is always a possibility, but I don't consider it to be a large possibility," Kansas City Federal Reserve President Thomas Hoenig said in response to a question.

"Inflation has come down ... but with the stimulus that is in place and if the economy does in fact pick up toward the end of the year, I think we will have pressures up because policy is very accommodative at this time," he added. (Reporting by Mark Felsenthal, writing by Lucia Mutikani)