St. Louis Federal Reserve Bank President James Bullard said Thursday that a bubble could form in the U.S. economy even as the central bank tapers its easing policy.

"I don't see a major bubble right now, but one will form as we are trying to remove the accommodation in the years ahead, because that's what happened in the 2004-2006 period," he said at the Credit Suisse Asian Investment Conference in Hong Kong.

Bullard noted that in 2006, the housing prices had already started to peak at the same time the Fed was tightening its policy.

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