Thread: BACKLASH BUILDS AGAINST FED PUMPING $600bn

Backlash against Fed’s $600bn easing

By Alan Beattie in Washington, Kevin Brown in Singapore and Jennifer Hughes in London

Published: November 4 2010 18:43 | Last updated: November 4 2010 18:43

The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.

The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets.

China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.

Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency warâ€

Brazil ready to retaliate for US move in 'currency war'... http://www.ft.com/cms/s/0/326a6d62-e83d ... ab49a.html

CHINA WARNS FED MOVE 'HUGE RISK'... http://www.reuters.com/article/idUSTOE6A301Q20101104

Germany Concerned... http://www.cnbc.com/id/39968918

Ron Paul vows renewed Fed audit push next year... http://www.reuters.com/article/idUSTRE6A35QB20101104