As President Obama meets with global colleagues at the G-20 summit in Seoul, South Korea, he is taking heat for the Fed’s decision to pump $600 billion into the American economy — from Germany’s finance minister to Sarah Palin.
As writer Judy Bachrach reports in World Affairs, Brazilian Finance Minister Guido Mantega likened the Fed policy to “throwing money out of a helicopter.”
And German Finance Minister Wolfgang Schauble said the policy is no better than Chinese efforts to keep its currency artificially low: “What the U.S. accuses China of doing, the USA is doing by different means.”
Palin, meanwhile, wonders if Obama is trying to encourage inflation. “A little inflation goes a long way towards driving down the value of the enormous national debt Obama has run up,” she wrote on her Facebook page.
For his part, Obama pointed out the Federal Reserve Board is an independent body, and “doesn’t take orders from the White House.’
Obama hasn’t criticized the Fed’s move:
It’s not our habit to comment on actions by the Federal Reserve. But as president of the United States, I can tell you that my instructions to my team, including (Treasury) Secretary (Timothy) Geithner is to focus every single day on how we can grow our economy, how we can increase exports, how we can make sure that even as we’re buying goods from places like South Korea we’re also selling goods to places like South Korea.