The Straits Times
Published on Oct 14, 2012

Bernanke says US stimulus also a boon for global growth


WASHINGTON (REUTERS/AP) - Federal Reserve Chairman Ben Bernanke on Sunday denied the US central bank's highly stimulative monetary policy hurts emerging economies, saying stronger growth in the United States bolsters global prospects as well.

Mr Bernanke has often defended Fed actions against domestic critics, who argue the policy of keeping interest rates near zero while ramping up asset purchases hurts savers and risks future inflation.

But, in a speech in Tokyo, Mr Bernanke addressed international critics of the policy who argue that the unorthodox Fed policies weaken the US dollar and boost the value of developing country currencies, hurting their ability to export.

"It is not at all clear that accommodative policies in advanced economies impose net costs on emerging market economies," the Fed chief told an event sponsored by the Bank of Japan and the International Monetary Fund, in prepared remarks made available to reporters in Washington.