WASHINGTON (AP) — Chairman Ben Bernanke is rejecting arguments that the Federal Reserve's bold moves to bolster U.S. job growth could have unwanted consequences in emerging market countries.
In a speech Sunday, Bernanke disagrees with criticism that the Fed's efforts to drive U.S. interest rates lower could result in higher inflation in emerging markets or trigger a destabilizing flood of investment money into those nations.
In fact, he says, the efforts of the Fed and the central banks of other industrial countries should benefit the global economy by boosting growth and providing stronger markets for the goods of developing nations.
Bernanke's speech in Tokyo was at a conference sponsored by the Bank of Japan and the International Monetary Fund.
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