–Criticises Federal Reserve Decision For More Quantitative Easing
BRUSSELS (MNI) – The euro-dollar exchange rate is not at a correct
level and could diverge even more ahead, Eurogroup President Jean-Claude
Juncker said Monday.
“The dollar vis-a-vis the euro is not at the level it should be,”
Luxembourg’s prime minister told members of the European Parliament
here, adding that he sees a risk of the rate “spiraling off course.”
European members of the G20 should ask the US some questions about
their “recent monetary decisions, because they don’t seem to be in line
with what was agreed at preparatory meetings,” for example in the G7, he
said.
Earlier this month, the Federal Reserve said it plans to pump
another $600 billion into the US economy by the end of June 2011 to try
to bolster its recovery.
“I don’t think it is a good decision; you are fighting debt with
more debt,” Juncker said, adding that he sees an inflationary risk from
the decision.
“I don’t think that the US decision will necessarily help solvency
or that American companies will invest more or that consumers will
consume more,” he said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$X$$$,M$$CR$,MGX$$$]