Bernanke: "critical" for the growth of the economy

/ Jacksonville... (Florida) - the Federal Reserve Chairman Ben Bernanke has defended the U.S. Central Bank critical binding purchase saying: return to a strong u.s. economy is critical to global stability. He suggested would thus strengthen dollar whose weakness caused rough Bogotá Cree in Beijing.

Decision of the Federal Reserve to buy 600 billion public debt fired bitter comments Nations who claim that it generates the volatility strengthen their currencies against the dollar, inflate the bubble and fuelling inflation in their economies.

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Berlin, the Minister of finance German Wolfgang Sch?uble pronounced: "with all respect, US policy is clueless."

Bernanke, answering questions Friday in Florida, college students emphasized the policies of the US Federal Reserve to give a boost to the low recovery the United States would dividends throughout the world.

"I believe it is important to note... as a strong u.s. economy, an economy recovery, it is essential not only for Americans, but it is also essential for the global recovery," says Bernanke.

G-20 tensions
Monetary policy of the Federal Reserve made more flexible with the new binding purchase plan Wednesday, was imported and other emerging market economies, and seems set to be a bone of contention with a group of 20 nations Summit in Seoul, next week.

The Minister of finance South African Pravin Gordhan said political Fed "the spirit of multilateral cooperation undermines" as the G-20, seeking to achieve .the ' money find themselves in financial markets in emerging countries with potentially devastating impact on their exports, he accused.

American politicians said Bernanke are fully aware of the importance of the dollar's strength in the global economy as réserve.Le dollar currency weakened sharply and made there again after the decision this week about a new so-called quantitative easing cycle.

"The fundamental best dollar will come when the economy is growing," said Bernanke. ""This is where the fundamental principles.

He told the students that commodity prices have increased significantly, they were the exception in the middle of generally silent prices for other products and should not be a serious problem.

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Bernanke has said there are plenty soft summer in the u.s. economy that will prevent producers of power fully products more expensive price in finished products purchased by consumers.

"Traded globally products such as energy, food... have been dating pretty abruptly," he said. "There where there are lot of slack in the economy...It is very, very difficult [...] for producers to pass these costs to the final consumer.?

Soft saving
He added that once the inflationary pressures become visible, the American Central Bank will be ready to change current monetary policy stance accommodating block inflation.

Official interest rates were close to zero for nearly two years.

"It will take a growth and a further reduction soft until we begin to see any type of tire pressure", he said.

Step all of the US Federal Reserve officials share trust Bernanke that inflation can be held in Kansas échec.Réserve City Bank President Thomas Hoenig has renewed his call for interest rates Friday, saying in a speech to real estate agents that new sales liaison program risks igniting inflation and another arrow and cycle of bankruptcy.

Criticism of the Fed's easy money policy can point to signs of improvement on the American job market where employers added jobs for the first time since may, as evidence the new asset purchases are inutiles.Mais analysts said the pace of jobs as insufficient to unfurl the unemployment rate.

"It is still probably not enough to get convinced Fed unemployment goes down or inflation will go, said John Canally, an economist at LPL Financial in Boston."

Most distributors interviewed by Reuters says that expect the fed to develop or expand its programme to stimulate the economy with the sales assets. firms dealing directly with us Federal Reserve economists stated that they expected no unemployment go below of 9.3% before July 2011.

Copyright 2010 Thomson Reuters.Cliquez on restrictions.


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