Fed bond move spurs backlash from Asia to Europe
BEIJING — China, Germany and Brazil warned the Federal Reserve’s move to inject money into the U.S. economy might harm the rest of the world, though Beijing said Friday the tactic was understandable because of the slow recovery. China’s central bank chief said the debate about the Fed’s attempt to spur growth by pumping $600 billion into the economy through purchases of Treasury bonds highlighted the need to reform the global financial system. Some governments worry the tactic, which will lower interest rates and is known as quantitative easing, might send money flooding into their markets seeking higher returns. That could push up exchange rates, hurting exports by making their goods…
Read more here:
Fed bond move spurs backlash from Asia to Europe
Posted by
on November 5, 2010. Filed under
News.
You can follow any responses to this entry through the
RSS 2.0.
You can leave a response or trackback to this entry