Financial Times FT.com

China says Fed policy threatens global recovery

By Geoff Dyer in Beijing and Kevin Brown in Singapore

Published: November 15 2009 16:02 | Last updated: November 16 2009 02:14

The US Federal Reserve is fuelling “speculative investments” and endangering global recovery through loose monetary policy, a senior Chinese official warned on Sunday just hours before President Barack Obama arrived in China for his first visit.

Liu Mingkang, China’s chief banking regulator, said that the combination of a weak dollar and low interest rates had encouraged a “huge carry trade” that was having a “massive impact on global asset prices”.

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