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Bernanke Defends US Fed's Policy

  • VOA News

U.S. Federal Reserve Chairman Ben Bernanke is seen prior to the International Monetary and Financial Committee at the annual meetings of the IMF and the World Bank Group in Tokyo, October 13, 2012.

U.S. Federal Reserve Chairman Ben Bernanke is seen prior to the International Monetary and Financial Committee at the annual meetings of the IMF and the World Bank Group in Tokyo, October 13, 2012.

The head of the U.S. Federal Reserve has rejected arguments that the central bank's monetary easing measures hurt emerging economies.

Ben Bernanke said Sunday the U.S. easing efforts strengthen the American economy. He said the moves also benefit the global economy by boosting growth and providing stronger markets for the goods of developing markets.

Some foreign officials have been critical of the Fed's policy, arguing that extraordinarily low U.S. interest rates end up giving the U.S. trade advantages by weakening the value of the U.S. dollar. A cheaper dollar makes U.S. goods less expensive in other countries.

The Fed has maintained an ultra-low interest rate policy for several years, pumping trillions of dollars into the U.S. economy to stimulate growth.

Last month, the Fed decided to inject $40 billion a month into a U.S. economy beset by high unemployment.

Bernanke said the dollar's value against the currencies of emerging market economies has not changed much during the Fed's prolonged period of credit easing.

Bernanke spoke in Tokyo at a conference sponsored by the International Monetary Fund and the Bank of Japan.
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