In contrast, Bernanke defends easing as one of his lieutenants says Fed didn't act aggressively enough
China's central bank governor has warned that quantitative easing policies worldwide could cause inflationary risks, state news agency Xinhua said on Saturday.
The remarks by People's Bank of China Governor Zhou Xiaochuan come even as analysts credit policy easing from G4 central banks -- the U.S. Federal Reserve, the European Central Bank (ECB), the Bank of Japan and the Bank of England -- in the third quarter of the year as underpinning business confidence. ...
Central banks "should consider draining excessive liquidity injected into the market and eliminate inflationary pressure in the long-term," Zhou was quoted as saying by Xinhua, which cited the Journal of Public Research, a magazine published by the People's Bank of China.
In contrast, Federal Reserve chief Ben Bernanke defended
his easing policies at an IMF meeting, while New York branch head William Dudley issued a call
for even more action.Read Article