St. Louis Fed President James Bullard said in a speech to the Official Monetary and Financial Institutions Forum in London that he believes that "monetary policy is appropriately calibrated given the current macroeconomic situation."

Policymakers are coming to terms with the possibility the euro area sovereign debt crisis could be more painful and more protracted than previously believed, Bullard added.

"The most likely way forward continues to be a long period of debt paydown and sluggish growth, both in Europe and the U.S., and that the most pressing policy issue is to accept this path and prevent any additional problems from developing as we press ahead," he said in prepared remarks.

(Reporting By Mark Felsenthal; editing by Patrick Graham)

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