A third round of asset purchases is not needed unless the U.S economy deteriorates and inflation falls back below central bank's 2 percent target, St. Louis Fed's James Bullard said in a CNBC interview on Friday.

Bullard, whodoes notvoteon on policythis year, said recent economic reports back his view that unemployment should drop below 8 percent and the U.S economy may expand as much as 3 percent this year.

With the better data, the super-easy policy already in place — I think we've got a lot on the table here, Bullard said, suggestingit would be a neutral time for policy makers to pause and await upcoming data.