Don't reduce QE3 until inflation ticks up: Fed's Bullard

JACKSON HOLE, Wyoming (Reuters) - The Federal Reserve should keep buying bonds at the current pace until inflation rises back up toward the 2-percent target, a top U.S. central banker said on Friday in remarks that show how divided the Fed is on its quantitative easing program.

St. Louis Fed President James Bullard, a voter on policy this year, told reporters the Fed would have to rethink its strategy for reducing asset purchases if inflation, now around 1 percent, drifted lower.

(Reporting by Jonathan Spicer; Editing by James Dalgleish)