June 14 (Reuters) - The U.S. economy has avoided falling into deflation, St. Louis Federal Reserve Bank President James Bullard said on Monday.

Bullard, responding to questions after giving a speech in Tokyo, also said inflation expectations are healthy as financial markets show investors expect consumer prices to rise more than the Fed's desired level of inflation in five to 10 years.

Bullard is a voting member of the Federal Open Market Committee, the Fed's interest rate policy-setting panel. (Reporting by Stanley White)