UPDATE 1-Fed's Lockhart repeats too soon to rush to exit

Thu Oct 1, 2009 5:44pm EDT

(Adds detail, background)

MACON, Ga. Oct 1 (Reuters) - The U.S. economy is starting a tentative recovery but it is too early for the Federal Reserve to begin a full-on exit from its support policies, Atlanta Federal Reserve President Dennis Lockhart said on Thursday.

Lockhart's speech at the Macon State College School of Business closely mirrored one he gave on Wednesday in Mobile, Alabama.

Lockhart said he thought it might be some time before a comprehensive withdrawal of the U.S. central bank's policies would be necessary.

The Fed has cut interest rates to near zero, offered hundreds of billions of dollars in short-term funding, and bought large amounts of longer-term securities to cushion the economy during the deep downturn. (Reporting by David Beasley, writing by Mark Felsenthal, Editing by Chizu Nomiyama)

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