Editor’s Note: China wants the G20 to have the authority to “monitor” the Fed. Since the Fed has battled an audit by our own Congress it’s doubtful it will happen, but it will be interesting to see if they concede any ground to accommodate global monetary cooperation.
China’s state media has issued a new broadside at the US Federal Reserve’s move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank.
The Xinhua news agency said in a commentary the Fed was “risking the global recovery by following its own track for economic revival” by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds to stimulate the US economy.
The comments were published just days ahead of two key summits this week – the G20 meeting in Seoul and the Asia-Pacific Economic Co-operation forum in Yokohama, Japan – that are expected to focus on rebalancing global trade.
“There is an urgent need for the G20 … to set up a new mechanism that effectively monitors the issuer of the international reserve currency, especially when it is not able to carry out responsible currency policies,” Xinhua said.
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