Germany says printing more money is a recipe for inflation
Federal Reserve Chairman Ben Bernanke
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JEREMY HOBSON: Fed Chairman Ben Bernanke faced his European critics today. Speaking in Germany this morning, he defended the Fed's extraordinary measures to boost the economy here in the U.S. Foreign leaders are worried about how their countries will be impacted by the Fed's decision to pump another $600 billion into the system.
Marketplace's European correspondent Stephen Beard reports.
STEPHEN BEARD: The Fed Chairman said that his monetary stimulus was vital to promote American growth and reduce unemployment. At 9.6 percent he said the U.S. level of joblessness is unacceptable. But he warned it could get worse, Bernanke denied that by printing more money the U.S. is pursuing narrow self interest. He said a robust American recovery would be good for everyone. It's the Fed's duty to provide enough stimulus.
BERNANKE: Insufficiently supportive policies in advanced economies could undermine the recovery, not only in those economies but for the world as a whole.
But the Europeans remain sceptical. And especially the Germans. They say printing more money is a recipe for inflation which is designed to drive down the value of the dollar and reduce U.S. debt. President Obama will face more European criticism at an EU summit tomorrow.
In London this is Stephen Beard for Marketplace.