The euro is not going through a crisis, although in some countries if the EU there are problems which must be solved, said the President of the European Central Bank Jean Claude Trichet. “There is no euro crisis. That is absolutely clear,” he added.
The US economic recovery is still too soft to bring down the country's high level of unemployment, the Federal Reserve warned on Tuesday. The central bank made the comment as it reaffirmed its commitment to continue purchasing 600 billion in bonds to stimulate the economy.
Economics 2008 Nobel Prize Paul Krugman said the United States is heading along a path of stagnation and deflation similar to that of Japan 18 years ago given the critical economic situation and the uncertain political scenario following the recent mid term elections that brought to Congress diehard Republicans.
The United States central bank chairman Ben Bernanke has criticised countries like China that run large trade surpluses. He said that by buying dollars, these countries were hurting the US recovery and the global economy with it.
The price of gold has hit another record high as investors worry about inflation and Europe's budget troubles. Tuesday morning it was trading at $1,421 an ounce.
Following the latest decision from the Fed to pump more money into the US economy which triggered a barrage of criticisms from overseas, chairman Ben Bernanke in a column published in The Washington Post explains what it did an why.
European Central Bank President Jean-Claude Trichet said on Thursday he did not think the United States was actively trying to weaken the dollar by printing money, despite criticism from emerging economic powerhouses.
German Economy Minister Rainer Brüederle from the liberal FDP blasted the United States monetary expansive policy which is geared to prop the declining US economy with strong liquidity injections.
Brazil said on Wednesday it was worried by the US Federal Reserve's plan to buy billions more dollars in bonds, saying the US policy of easy money could lead countries to enact protectionist policies.
Treasury Secretary Timothy Geithner vowed that the United States would not devalue the dollar for export advantage, saying no country could weaken its currency to gain economic health.