Lockhart said there is plenty the central bank could do if the economy does deteriorate further, including ramping up asset purchases or shifting their composition.

Recent market volatility, driven in part by concerns of slowing economies both in the US and Europe, threatens consumer confidence and could put a crimp on spending, Lockhart told a Rotary Club meeting.

“The events of the last several weeks are a reminder that circumstances can quickly arise that may call for additional monetary stimulus,” Lockhart said

Last week, the Fed took the unprecedented step of promising to keep interest rates near zero for at least another two years. Lockhart said that in his view, the pledge hinged on economic conditions, and could be altered as the economic winds shift.

But Lockhart added that, even though the Fed had only made a verbal promise about rates themselves, that its balance sheet policy “should align with explicit rates policy.”