Chairman Ben Bernanke (Ben Bernanke) refused parameters, the Fed's bold move to strengthen the employment growth in the United States might have unwanted consequences in emerging market countries.
In Sunday's speech, Bernanke do not agree with the criticism that the Fed's efforts to promote the decline in U.S. interest rates may lead to higher inflation in emerging markets or to trigger a flood of investment funds into the instability of these countries.
In fact, he said, the efforts of the Fed and other industrial countries, the central bank should be conducive to global economic, stronger market goods to promote growth in developing countries.
Bernanke's speech to a meeting hosted by the Bank of Japan in Tokyo, and the International Monetary Fund.
At its September meeting, the Fed announced a plan to buy $ 4 billion a month of mortgage-backed securities to drive low interest rates, and give a boost to the real estate market. The increase in home sales may help to promote employment and accelerate economic growth.
Also expand the Fed to maintain low interest rates until at least mid-2015 time frame, and said that interest rates will remain low, even if the pace of growth in the U.S. economy began to more. , The Fed said it would continue its efforts until it sees a substantial increase of the U.S. job market.
Sunday, in his speech, Bernanke said that the Fed's efforts, not only conducive to the strengthening of the U.S. economy's recovery, but its effect by increasing the consumption and growth of the United States, to help support the global economy. "
Some foreign officials have criticized the Fed's policy, arguing that the very low interest rates in the United States will eventually weaken the dollar value of the U.S. trade advantage. The depreciation of the dollar makes American goods cheaper in other countries.
Bernanke said the Fed's long-term U.S. credit easing, the currencies of emerging market economies is little change in the value of the dollar.
Bernanke controversial criticism of the low interest rates in the United States and other industrial countries destabilizing investment flows to emerging economies could exacerbate inflation in these countries.
He said, he must not believe that the decision in the Federal Reserve and other developed countries, the interest rate policy of capital flows. Bernanke said that many developing countries can control these investment flows to prevent asset bubbles or higher inflation.
For example, a country may allow the value of its currency rise in foreign capital inflows. However, Bernanke said that the choice of a number of emerging market economies, in order to maintain the value of its currency low to gain a trade advantage. In his speech, he did not name any countries, but U.S. manufacturers claim that China is manipulating its currency to maintain its value against the dollar to boost its exports, and U.S. goods in China more expensive.
Bernanke said the package must be understood as - you can not have one without other advantages, underestimated and unnecessary capital inflows. "
The Fed is not expected to announce any major action, when its next meeting on October 23 to 24. Most analysts believe that the central bank is more inclined to wait and monitor the impact of the September action.
Bernanke in Tokyo to attend the annual meetings of the IMF and the World Bank. His speech was mainly distributed a copy of Washington.


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