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Federal Reserve Chairman Ben Bernanke, plan to rejuvenate the economy through the purchase of the US Federal Reserve 600 billion in bonds of the Treasury Board is under attack renewed - this time other Republican economists.

They argue that pumping more money into the economy might trigger inflation and weakening dollar trop.Les economists are their case in a letter to Bernanke and advertisements to run this week in the Wall Street Journal and the New York Times.

The binding of the Treasury Board buys "risk currency debasement and inflation and we think that they will achieve objective the Fed for the promotion of employment", economists wrote in his letter.

At the same time, their risk of criticism, forcing the Federal Reserve closer in the politics of Washington, where many people fear the independence of the Central Bank can be compromised.

Economists expressed doubts that program will help the Fed chief goal: reducing unemployment, now trapped at a rate higher 9.6%.And they think it will be injected new risks in the global economy.

Bernanke, a Republican who was top of President George w. Bush to take the Fed Economist in 2006 reported frustration still sluggish economy and unemployment élevé.Même if the recession is over, the unemployment rate has been stuck at 9.5 per cent or more than one year.

Announcing November 3 bond purchase program, the Federal Reserve said could lower long-term interest rates and economic growth more forte.Bernanke said he thought that low-interest loans lead to borrow and develop businesses. Cheaper mortgages allow more people to buy or refinance.

Stock prices would increase wealth and trust of individuals and businesses, has suggéré.Et expenditure increase lifting revenues, profits and economic growth.

But at a Summit of leaders global South Korea last week, the Germany China and other countries complained that plan the Fed would u.s. exporters an edge competitive price by flooding world markets $.

Emerging as the Thailand and the Indonesia fear fall Treasury yields will send money floods went in search of higher yields. These emerging markets could leave vulnerable to injury if investors decide more later extract and move their money elsewhere.

23 Economists letter represents a new front of the attack on the Fed-purchase plan.Economists who signed it include Douglas Holtz-Eakin, who served as Councillor political top 2008 Republican candidate John McCain.John Taylor, a senior official of the Department of the Treasury administration Bush; and Michael Boskin, Chief Economist at father Bush, President George H.W. Bush.

In the letter, they said Bernanke that the programme should be "reconsidered and abandoned."

The existence of the letter was reported earlier Monday by the Wall Street Journal.

In response to this, a spokesman for the Federal Reserve American said: "" the Federal Reserve does not believe that it can solve problems of the economy on its propres.Qui will take time and the combined efforts of several parties, including the Central Bank, Congress, administration, regulatory agencies and private sector.""

The Fed said it will regularly review program, whereby the Treasury will buy 600 billion dollars in obligations for eight months.The ECB left the door open to scaling back, or the limitation of the bond purchases if the economy achieved better results than expected - or buy more if seriously weakened the economy.

Rate of decline in prices of the Treasury Board and has increased for a third day Monday after Bernanke's letter came to light.Predatory reflects the speculation that the Fed could not achieve the full $ predictably 600 billion bond purchase program.The yield on the 10-year Treasury Board has jumped to 2.93 %.C'est at its highest level since July, before the start of the US Federal Reserve it take measures to stimulate the economy of refining.

Bernanke urges that the US Federal Reserve has the tools to absorb safely any extra money pumped into the economy and to avoid triggering a worrisome inflation.

Yet even in the US Federal Reserve us, some members expressed unease about the potential risks of the programme and doubts as to how it will help the economy.

Kevin Warsh, who was among the 10 Fed officials who voted for the $ 600 billion program last week nevertheless expressed doubts as to whether it could boost the economy .and he warned against "risks", including the potential to trigger excessive inflation by the suite.WARSH said that the Fed may have to review its programme if the dollar continued to fall or commodity prices continued to increase, raising inflation throughout the economy.

Critics inside and outside of the u.s. Federal Reserve also worry that the last intervention opens to criticism is printing money to pay the debt of the gouvernement.Et which, in turn, tarnishes the independence of the Federal Reserve Central Bank.

"This puts the right Fed mid-politics," Holtz-Eakin said in an interview. "The risk of politicization of the US Federal Reserve, running a higher inflation and increasing international tensions are that the benefits outweigh the costs.?

Rep Mike Pence, R - IND., a criticism of the Fed bond purchase programme says it plans to introduce a bill that would change the mission of the fed to concentrate solely on keeping inflation at cocher.Actuellement, the US Federal Reserve has a 'dual mandate' Congress: to maintain inflation and unemployment faible.PENCE said it concerns, among other things, the Federal Reserve program would result in a dangerous surge in inflation.

? 2010 The Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

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