Tags: merkel | central | banks

Germany Warns of Fed Power, Another Crisis

By    |   Wednesday, 03 Jun 2009 02:36 PM

German Chancellor Angela Merkel has harsh words for central banks around the world, suggesting they have eased monetary policy too far in their effort to fight recession.

She also says current central bank policy risks bringing back the financial crisis.

"I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line," she said in a Berlin speech cited by The Wall Street Journal.

Merkel isn’t too impressed with The European Central Bank either, saying it “has also bowed somewhat to international pressure with the purchase of covered bonds.”

She was referring to the ECB’s plan to buy 60 billion euros ($85 billion) of corporate bonds.

“We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years’ time,” Merkel says.

It is nearly unprecedented for a Western leader to criticize her own central bank, let alone other central banks for loose monetary policy.

In Germany, it has historically been the Bundesbank central bank that has insisted on tight monetary policy, often when the government would have preferred easier policy.

Merkel isn’t the only one who believes central banks around the world are easing too much.

Back in October, before much of the central bank action even took place, star investor Jim Rogers told CNBC that central banks are unleashing a “massive inflationary holocaust.”

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
German Chancellor Angela Merkel has harsh words for central banks around the world, suggesting they have eased monetary policy too far in their effort to fight recession.She also says current central bank policy risks bringing back the financial crisis."I view with great...
merkel,central,banks
245
2009-36-03
Wednesday, 03 Jun 2009 02:36 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved