Fed could be stoking next asset bubble: Fed's Bullard

ST. LOUIS Thu Nov 8, 2012 8:49pm EST

ST. LOUIS (Reuters) - St. Louis Federal Reserve President James Bullard cautioned on Thursday that the zero interest rates pursued by the U.S. central bank could force investors to move into riskier assets in a way that contributed to future financial turmoil.

"You might create some kind of bubble situation ... Markets pile too much into assets without accounting for the risks they are taking," Bullard told a corporate finance conference.

(Reporting By Alister Bull; Editing by Eric Walsh)

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