Fed's Bullard: U.S. to benefit from flight to safety

Tue May 25, 2010 1:51pm EDT

(Corrects date to May 25)

LONDON May 25 (Reuters) - Safe-haven flows to the United States triggered by concerns about the euro zone debt crisis will be beneficial for the United States, St. Louis Federal Reserve President James Bullard said on Tuesday.

At an economic seminar in London, he added that this would help the U.S. economy achieve its growth forecasts for the next few years, provided there was no "serious" contagion from debt problems plaguing Greece.

"The U.S. will be an unwitting beneficiary from the crisis, much as we were in the Asia crisis," he said.

"Even though it will not be the greatest for Europe ... flight to safety will be good for the U.S."

(Reporting by Ian Chua and Naomi Tajitsu, Editing by Ruth Pitchford)

FILED UNDER: