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Frankfurt, Germany, Federal Reserve Chairman Ben Bernanke hit on Friday to critics of the U.S. Central Bank bond purchasing program and issued an attack slightly veiled policy China to maintain its currency on a leash.

In his first speech since the u.s. Federal Reserve announced the program on 3 November, Bernanke also his case more aggressive so far this Congress also should provide more help stimulus.

No more stimulus, high levels of unemployment can persist for decades, there dit.Mais, in the manufacture of this argument, Bernanke risk fanning claims jumped the Fed into partisan politics.

Bernanke, to a chorus of events on the frenzy of goods within and outside of the Central Bank, said a more robust u.s. economy was essential for the global recovery and dismissed the charges, he was humiliated the dollar.

Video: Bernanke BCE

"The best way to continue to provide strong economic fundamentals which underlie the value of the dollar, as well as to support the global recovery is by policies that lead to a resumption of robust growth in a context of stability prizes at the United States," Bernanke said in a speech at a Conference at the European Central Bank in Frankfurt.

3 November decision the Fed buying more of 600 billions of dollars in debt the u.s. Government with the new currency generated outrage among policymakers in many countries, who accused United States seek to weaken the dollar to obtain a benefit from the export.

German Finance Minister Wolfgang Sch?uble called the policy "clueless."

Critics at home, including Republican leaders in Congress and certain officials of the US Federal Reserve, say they doubt the program will help the economy .they also fear it could harm - trigger inflation leading to a speculative buy on Wall Street.

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Fed officials surrounded their cars this week to defend the programme.Deux added endorsement Thursday, but another expressed opposition and a fourth monetary policy said should not play the main role in the conduct of a stronger recovery.

"Deficits and surpluses are generated by the behaviour of many countries not one single currency,"Bernanke said in a discussion later with the IMF Executive Director Dominique Strauss-Kahn and President of the European Central Bank, Jean-Claude Trichet.""

"It will be very difficult for their own exchange rates to restore balance and so I think that structural adjustments on both sides are needed," Bernanke said.

Strauss-Kahn said he also recognizes that global imbalances involved difficulties but said could not be addressed without "important changes in relative currency values".

"We must move forward in this direction," he said.

Addressing international criticism of the Fed action, Bernanke said that much of the recent weakness of the dollar reflects a workflow increases were notches as investors fled the greenback sovereign debt crisis European spring security.

History: Republicans Bernanke: QE2 could jeopardize dollar

Many emerging economies have worried this volatile investment entries triggered by the decline of the dollar may be destabilizing - fuelling inflation or bubbles.

Bernanke said the failure of some emerging market economies with trade surpluses to allow their currencies to appreciate the problems these countries face worse.

"Surplus countries currency undervaluation is inhibiting the necessary international adaptation and creation of cascading effects that would not exist if the exchange rate reflects better the fundamentals of the market", he said, without explicitly pointing to China.

American officials have long argued that an undervalued Chinese yuan gives the Central Asian export an unfair advantage.

Inflexible said Bernanke currencies have been a necessary rebalancing global growth and could eventually destabilize the world economy.

"For the big countries systemic importance with persistent surpluses into account, the continued growth of exports may eventually succeed if the implications of this strategy for global growth and stability are not taken into account", he said.""

Bernanke said sluggish u.s. growth, decrease in inflation and a rate of unemployment that has oscillated about 10 percent for the month convinced makers Fed they had to pump more than stimulus.

"On its current economic trajectory, the United States runs the risk of seeing millions of unemployed or underemployed during many years," he said in his speech. ""As a society, we find that unacceptable".

However, the Fed itself program can solve the problems of the economy, says Bernanke.

"There are limits to what can be accomplished by the single Central Bank", he said, jam expectations.

"A fiscal program that combines short-term measures to foster strong growth inducing stages of confidence to reduce structural deficits (budget) longer term would be an important complement to the policies of the Federal Reserve," he said.

Bernanke has already warned that the economy is too fragile for the Congress to reduce costs or increase taxes, even though he argued that the legislators and the White House must develop a credible plan to reduce deficits more trillion budget in the long term.

But the Director of the reserve amplified this avertissement.Il is the Republicans in Congress - coming off the coast of great victories in the election of mid-term - use their influence to push for less tax more discipline and Government spending.

Republicans are upset with Bernanke because they believe that the Fed is beyond its limits with liaison.Ils purchasing program argue that the Fed is printing money to pay for a massive government debt.

Republicans Rep Mike Pence and Senator Bob Corker, want mission the Fed to be overhauled.

They want the US Federal Reserve to concentrate solely on keeping inflation at cocher.Elle now has a 'dual mandate' of the Congress: to maintain the low unemployment and inflation.

Put on the defensive, felt Bernanke forced this week to meet with legislators on the Committee's Privy Senate Banking to defend program reserve fédérale.Collègues Bernanke flow were also making public appearances to support the action of the Federal Reserve these last jours.Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis and Cleveland Fed President Sandra Pianalto were on circuit Thursday.

Reuters and The Associated Press contributed to this report.

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World markets, which is sold in advance of the planned stimulus jumped again on Thursday and Friday. In Asia, Nikkei 225 the Japan jumped 2. 9pc, 1. 2pc, said S & P/ASX 200 Australia Hong Kong Hang Seng 1. 3pc and China's Shanghai Composite 1pc.

However, plan the Federal Reserve has weakened the dollar grew even more Asian currencies and heigthening risks monnaie.Corée South Brazil war and in Indonesia among others intervened unilaterally these past weeks to curb the rise in their currency.

Weakening greenback has prompted a wave of protectionism warnings and controls capital to prevent the so-called hot money Asian Nations potentially exacerbating tensions ahead group week next 20 Korea South Summit.

Xia Bin, Member of the Committee of the Chinese Central Bank monetary policy marks the plane stimulus "violent" and prevented it could cause a new global slowdown.

"If there is no deduction for the issuance of the major global currencies such as the US dollar, the presence of another crisis is inevitable," he said in a report from Beijing News.

Called developing to impose capital control measures to "prevent the influx of floating capital of affecting their economy.

The Korea Bank warned that the foreign receipts were gathered, pace in recent months but may change direction abruptly.

A senior finance said that Seoul is "active" Ministry official seek additional ways to curb excessive intakes.Foreign investment in bonds Koreans South, which plunged after the collapse of Lehman Brothers, enterprise services 2008 has begun to rise in the second half of last year.

Yoon Jeung-Hyun, the Minister of finance, stated that the Government is considering various measures, including a tax on foreign investment in bonds of the Treasury Board.

The Japanese Finance Minister, Yoshihiko Noda, said Friday that it would maintain a very close eye"on U.S. shifts among the concerns already reached records 15 years against the dollar, the yen could prepare more.

Tokyo intervened in the markets of foreign exchange in September for the first time in six years to try to cap the rise of stronger yen, which was hammered exporters, regarded as the key to the recovery of the Japan.

Hong Kong Financial Secretary John Tsang, said extra money flows would "bring more pressure on our stock market and property" and added: "We will look at the situation closely in the short term."

Central Bank of the Indonesia said that he perceived the influx of foreign capital as a threat greater than the increase in prices in the greater economy of Southeast Asia it maintained its interest to a historic low of 6 5pc key rates.

Bank Indonesia ordered commercial banks to raise their reserves to absorb surplus funds and curb pressures inflationnistes.Qui followed moves in July to curb short term foreign inputs and reduce the risk of sudden.

The Finance Minister Thai Korn Chatikavanij said that the Central Bank Governor is "narrow talks with Asian counterparts and if there is a continuous influx of capital in regional economies, we will put in place measures to combat speculation and prevent serious volatility.

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TOKYO – Asian markets rallied Friday after U.S. shares closed at their highest level since just before Lehman Brothers collapsed in 2008 as the Fed's latest attempt to lower long-term interest rates sent investors flocking to stocks.

Japan's benchmark Nikkei 225 stock index jumped 251.52 points, or 2.7 percent, to 9,610.30 in the morning session. South Korea's Kospi added 0.5 percent to 1,952.30 and Australia's S&P/ASX 200 gained 1.0 percent to 4,867.60.

Hong Kong's Hang Seng index climbed 1.5 percent to 24,914.60. China's Shanghai Composite Index rose 1.1 percent to 3,120.81. Shares in New Zealand, Singapore and Taiwan were all higher.

In New York, the Dow Jones industrial average surged 219 points, or 1.9 percent, to close at 11,434.84 on Thursday, the highest closing level since just before Lehman Brothers went under in September 2008, triggering the global financial crisis.

The Federal Reserve's decision Wednesday to spend $600 billion buying Treasury bonds over the next eight months in an attempt to spur economic growth is expected to lower long-term interest rates, making stocks a more attractive investment.

The move has also boosted the prices of commodities like oil since expectations the Fed would increase the money supply have weakened the dollar, which is the currency most commodities are traded in. A weaker dollar makes commodities more attractive to investors holding other currencies.

In currencies, the dollar inched up to 80.78 yen from 80.73 yen in New York late Thursday. The euro rose to $1.4212 from $1.4211

Benchmark crude for December delivery was up 40 cents at $86.89 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.80 to settle at $86.49 a barrel on the New York Mercantile Exchange.

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Dow Jones in stir-fry to a maximum of two fresh years, earning more than 170 points - or 1. 5pc - 11,386 - yesterday it 0. Pink 2pc after the Fed describes his plan link purchase. The broader S & P 500 gained 1. 3pc and technology-rich Nasdaq was increased by 1. 2pc.

US retailers reported strong sales in October and has helped to lift shares with gap until early commercial 7pc 4pc Macy.Preuve U.S. shoppers were more spending on traders assisted clothes get rid of an increase in the number of new claims for unemployment higher than expected.

Actions around the world was supported by the decision of the Federal Reserve to introduce quantitative easing most of creating more money and to increase the supply of money in the economy - which will need to buy $grant to Treasury bonds a month until next June.

"We believe QE2 will be more efficient that investors realize," Andrew Garthwaite, London head of global strategy for equity Credit Switzerland wrote in a report."Remain us overweight actions."

Positive feelings have lifted the other major awards European and Asian .the ' Germany DAX rose 1 65pc, CAC-40 France 8pc 1 and 2 2pc, despite pressures on exporters the dollar fell below the level of yen 81.Hong Kong Hang Seng added 1 6pc and Shanghai Composite Japan Nikkei China closed until 1 9pc to a maximum of seven months of 3,086.94.

Although the prospect of more money into the financial system has been a boon for stocks, dollar tombé.Le dollar is at its lowest level since December 2009 against a broad basket of currencies and secured against this index Thursday 1pc.

Finance Ministers in emerging as China and the Brazil criticized the Fed stimulus plan and said that additional supply of dollars of investment could lead to bubble in their country.

Sterling is increased to its highest in nine months against the dollar - briefly striking $1.63 - Thursday after the Bank of England held the interest rate and unlike conserved United States its programme for the purchase of goods organize according to the economic recovery signs United Kingdom is on the right track.

The pink 1pc of euro against the dollar as investors has increased tolerance to risk on inflation and growth forecasts in the euro area after the departure of the European Central Bank reference interest rates unchanged as expected.

In London, rising stock prices was assisted by a 6 1pc miner BHP jump, partly due to the decision of the Federal Reserve and the rest the outcome of the Canada block its $remained hostile to group potash fertilizer.

Other minor grew strongly and with the rise of Natural Resources, Xstrata, Kazakhmys and Rio Tinto between 5 1pc and 6 9pc.

Good new business has also helped the man mounted 14pc sentiments.Groupe upwards classification FTSE after that most large listed company hedge funds world beats its own first half profit forecasts and announces the resumption of the assets of the client.

The firm, which saw eight straight quarters of net, said customer assets rose to $40. 5bn at the end of September. against estimates of $39. 5bn in September.

Unilever, the consumer goods group increased by 5 3pc after an optimistic statement in its ability to raise prices and to reduce the cost of commodity prices higher that it corresponded forecasts with a counter rising sales of third quarter.

"Consensus beating results continue to be favourable to the market with the authorities in fact appear to be prepared ready and able to support the economic recovery, which is good news", Henk Potts, Barclays Wealth, equity strategist said.

The rise is tempered by a 4 6pc fall at Rolls Royce after Qantas Airways flights suspended its fleet of Airbus A380 after the failure which led to an emergency landing at Singapore Rolls-Royce Trent 900 engine.

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LONDON (AFP) – Europe's main stock markets accelerated opening gains on Thursday, as investors welcomed news that the US Federal Reserve launched a second wave of quantitative easing measures overnight.

In morning trade, London's benchmark FTSE 100 index of top shares leapt 1.74 percent to 5,849.01 points, Frankfurt's DAX 30 added 1.42 percent to 6,711.69 points and in Paris the CAC 40 soared 1.99 percent to 3,919.48.

At the same time, the US dollar plunged to the lowest level against the euro for more than nine months on the back of the move.

"Although the Federal Reserve's decision to pump further funds into the US economy hardly came as a surprise, it certainly seems to have kick-started the equity market this morning," said ETX Capital trader Manoj Ladwa.

"The FTSE has smashed through the previous high of 5,800 points and with the positive momentum, 6000 seems to be the next level for traders to gun for."

Asian equities also responded positively after the Fed announced overnight that it will launch a new 600-billion-dollar (423-billion-euro) asset-buying plan, known as quantitative easing (QE), to bolster the sluggish US recovery.

Tokyo soared 2.17 percent in value and Shanghai added 1.85 percent to finish close to a seven-month peak.

The US central bank's move was slightly higher than market expectations for around 500 billion dollars of additional QE measures.

However, sentiment remained cautious in Europe ahead of interest rate announcements from the Bank of England and the European Central Bank later on Thursday.

"The Fed chose to abstain from doing harm to the markets by announcing QE2 details roughly in line with what the majority of market participants have been expecting all along," said Societe Generale analyst Vincent Chaigneau.

Wall Street won some ground on Wednesday as traders weighed the Fed's multi-billion-dollar move, alongside a Republican victory in Congress.

The blue-chip Dow Jones Industrial Average rose 0.24 percent to close at 11,215.13 points.

The Federal Open Market Committee (FOMC) said Wednesday it would buy up new Treasury debt at a rate of around 75 billion dollars a month, a scale not seen since the depths of the 2008-2009 economic crisis.

While the Fed took similar measures during the crisis and has rolled over those expiring purchases, the expanded spending is unprecedented when the economy is not teetering on the edge of collapse.

The move followed Tuesday's mid-term elections in which control of the House of Representatives shifted to Republicans, who have called for less government interference in the US economy.

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The US Federal Reserve, led by Chairman Ben Bernanke should adopt a gradual approach to QE2. Photo: GETTY

That report called log "measured approach" compared with investors an initial purchase at least 500 billion dollars in debt from the Treasury over five months, to stimulate lending and to support an economic upturn that is too low to tame the high unemployment rate commitment base-case scenario.

The newspaper gave no source for the report on its Web site and said that, although details remain to be sorted internally, outline took shape.

Fed officials meet on 2-3 November and largely should embark on a second round of the monetary easing, but much uncertainty surrounds the scope and pace of bond purchases possible.

The log for the u.s. Federal Reserve said wanted to avoid the "shock and awe" style used in the global financial crisis in favour of an approach which allowed them to adjust their policies and may add to their purchases over time as the recovery unfolded.

Told that the Fed would leave open the possibility of buying more in the future, especially if inflation is expected to remain under 2pc prospects for unemployment remain high and could stop the program if the economy and inflation departed surprisingly.

Purchase link is likely to focus on obligations of the Treasury with maturities mainly between two and 10 years, he said.

The US Federal Reserve could buy bonds in the long term, although some officials are reluctant to that aggressively because it can expose them to losses in the long term without much added advantage, he said.

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Seven other policies Committee monetary members voted to leave the levels and EQ on hold, according to the minutes of the meeting of the Committee on monetary policy on October 6 and 7 published Wednesday.

Mr Posen and Mr. Sentance are external members of the CPC.

On balance, the minutes suggests that the Bank is toweards QE the redémarrage.alors inclination that most PPC members thought that the balance of risks has not changed sufficiently to justify action, some felt that the chances that the stimulus more should had increased in recent months.

"But they evidence were not sufficiently compelling to imply that needed a such course of action at the present time," said the minutes.

The last time there was a three-way split appropriate has been in the months before the financial crisis with the seized money markets and banks pulling credit grappled with sub-prime toxic assets.The price of oil had reached almost $ 150 per barrel and inflation was 3 8pc - far over 2pc target - and the rise of the Bank.

Then David Blanchflower made the right call vote for a rate cut while Tim Besley the credibility of the Bank on inflation targeting fears have little time to be presented by the collapse of Lehman Brothers.Both have left since the CPC.

Mr Posen last month, has argued that without additional stimulation do decision makers could be condemning the United Kingdom "lost decade" of slow growth and unemployment élevé.Il said that the collapse of demand in the short term could affect long-term economic - production, as companies react by cutting jobs annulling the investment and the closure of factories.

The result would be to reduce the nation under its potential production capacity condemning Britain the potential social and political disasters caused by high unemployment.

It seemed to reiterate the argument parameter October meeting Banque.Le minutes rate said that according to him, "the current level of capacity in the economy is large enough so that monetary policy can afford to promote faster growth without risking an underlying inflationary pressures increase in junk."

He added that QE more "... reduce the risk that a controlled growth period would be a self-reinforcing effect diminishes the ability to supply the economy."

In his speech last month, Mr. Posen said: "damage to our economy, our businesses and our staff can be made permanent by the inaction by policy makers - this does is not just through a bad patch, eager to be a return to growth and employment."

"The policy challenge is to obtain a result negative self-perpetuating many of term our children as well... would undermine".Policy makers should not settle for the low growth of fear of inflation.?

In what is likely to have been an exchange of views in the boardroom of the Bank, M. Sentance took his gun and pointed out that, although there is some evidence that the slowdown in growth "that must be seen alongside the strong dynamics of growth in the first half of the year".

GDP has increased by 1 2pc in the second quarter alone - is the fastest pace in nine younger.lfamily consensus for this year's growth is now 1 6pc to 1 3pc only four months ago forecasts that growth next year forecasts have spent 2 3pc 1 9pc.

Mr. Sentance also stressed the DCH needed to respond to the fact that inflation has been constantly above target, with newer - 3 1pc CPI figures - raise the spectre of the Governor having to write a letter ninth explantion for Chancellor since April 2007.

The minutes note that Mr. Sentance says inflation could further increase over target "with pressures to increase the standard VAT rate and rising oil and other commodity prices".

The minutes added: "in view of this member, in refraining from responding persistent inflation over the target, which was expected to continue for some time, it risked a loss of credibility that may affect business and consumers in the medium term confidence."

Sterling hit the day low against the euro and gilts cut earnings Wednesday after the triggered minutes more quantitative expectations facilitate data show UK public debt has increased to a record high for the month of September.

Nida Ali, economic adviser to the Club point of Ernst & Young, said: "it seems that concerns Committee's slow recovery UK increased steadily and solidified believes that further monetary stimulus may be necessary."

However, with overall spending today review and inflation in November report, Economist wait the MPC will be a better framework for making monetary policy decisions next month.

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Ben Bernanke has opened the door to another round of several billion dollars of "quantitative easing" - a polite but intellectually dishonest, name 'money-printing' photo: GETTY

Ben Bernanke, the Chairman of the Fed, told an audience in Boston yesterday that "the risk of deflation is higher than desirable" and "unemployment is currently forecast to persist for a time".

Central Bank makes us his political challenges facing difficult over the decades it weighs risks start another series of quantitative easing (QE) - or printing money .the financial markets are now convinced that the Fed will add to the 1.7 trillion (1.1 trillion of ￡) triggered during the depths of the responsible federal reserve récession.Certains us fear that continuing low inflation is originally consumer spending in the hope that prices will eventually be delay even lower.

Comments on inflation is "a clear signal that he (Bernanke) would further stimulus,", said Michael Gapen, an economist at Barclays Capital.

However, there remains a considerable doubt on the scale of any new dose of EQ and the exact form that should be.Mr. Bernanke stated that the Fed options include purchasing more resources in order to inject funds into the economy, as well as changing the way it communicates policy to financial markets and broader economy.

"The scene has been set for EQ program to be launched at the beginning of November," said Kevin Logan, Chief u.s. economist at HSBC. "Now we can expect advice to see what form it will take actually."

Price for the American Government bonds declined after speech Bernanke as bet the Fed could succeed to fuel inflation .the markets stock, investors who have rallied strongly in recent weeks on the hopes that the reserve US Federal would, in the news regularly organising.

Committee of the u.s. Federal Reserve - the body that defines the interest - rate is likely to see fierce debate on whether and how to make a second round of ve.

That the debate further honed in Britain hier.Créer more money to stimulate the economy is a possibility, but may be avoided, said a senior decisionmaker of the Bank of England.

"Currently, it is not clear if the next step with active purchasing program is more likely to be to sell the assets back or buy more," said Paul Fisher, Executive Director of the Bank markets. "The Bank is prepared to be.?

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Minutes of the recent meeting of the Federal Reserve has confirmed that the Central Bank is considering a new round of "printing money" to re-launch the stall recovery. Photo: Getty Images

Sterling climbed 1.77 cents to $1.6015, comes from the high eight months it affected intra-day trading, the euro has increased to $1.4123-its high since February and the yen has reached a peak of 15 years Y81.54. Weakness of the dollar and fears that the U.S. Treasury yields will be down for EQ as trigger interest in gold.However, investment haven of the planet has reached a new record of $1,386 per ounce, having already increased 25pc this année.Produits also rallying.

Minutes published this week of the reserve Federal us the most recent meeting confirmed that the Central Bank is considering a new round of "printing money" to re-launch the stall recovery.The new sparked a dollar sell-off, which has been losing ground against other currencies for some time.

China Thursday locked to slide the dollar's strength strike at recent critical acute United States .Li Xiangyang, a Director of the Chinese Academy of social sciences, a first group of reflection of Government accused America to be "the first manufacturer of tomb figures" phrase, in Chinese, reflected by a person who has set a bad precedent.

"The depreciation of the dollar seems to be focused on the market," Li wrote in the daily lives of the people. "In reality, it is a depreciation stained by very strong actions, deliberate. ?

The reprimand followed weeks attacks on China officials and economists, who claim second economic power world is distortion of trade flows by deliberately keeping its currency to support its industry export .the comments were soon followed by a call to Chinese Deputy Prime Minister Wang Qishan County to keep Clarke the discussion of trade policy.

"Two nations should further enhance trust and mutual understanding to avoid politicization economic and trade issues," said U.S. former Secretary of State Madeleine Albright in Beijing, according to the Xinhua News Agency official Chinese.

HSBC Analyst Jim Steel said litigation money helped support gold. ""The recent meeting of IMF having regard to the public release of disagreements between China and the United States on monetary policy," he said. "QE expectations are an important element, currency differences are also a first pilot of the price of gold.?

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