German Econ Minister Bruerdele says the Fed’s contemplation of more quantitative ease is the wrong way to stimulate growth and may amount to manipulation of the dollar.
ECB chief Trichet was ambivalent but seemed to see the Fed’s potential action from a broader perspective:
“The remark was made that the accommodating policy vis-a- vis the U.S. might mean problems for the emerging economies, at least in terms of inflation,” he said. “The point was made that it was much more complicated than that” and that combating deflation “was also a contribution to global prosperity. It was an exchange of views, with no particular conclusion.”
