Bullard says concerned Fed too influenced by market volatility

NASHVILLE, Tenn (Reuters) - St. Louis Fed President James Bullard said on Saturday he was concerned the Fed paid too much heed to recent volatility in financial markets in its decision last week to hold interest rates near zero.

Bullard, who said he would have dissented if he had been a voting member of the policy setting committee, said recent markets swings should not detract from the Fed's focus on the whole economy, which he feels continues to do well.

"I did not like the reference to financial market conditions...Financial markets tend to wax and wane, sometimes suddenly. Monetary policy needs to be more stable," said Bullard.

The Fed in its statement last week said that "recent global economic and financial developments may restrain economic activity."

(Reporting by Howard Schneider; Editing by Diane Craft)

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