Germany Warns of Fed Power, Another Crisis

Wednesday, June 3, 2009 2:36 PM

By: Dan Weil

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.