China Urged Caution in Fed Policy Tapering

Chinese officials have expressed concerns regarding the expected slowing of the U.S. bond buying program. The U.S. economy is showing signs of recovery and many expect that Ben Bernanke will announce that the Federal Reserve will tighten the bond buying program after its mid-September meeting.

Vice Finance Minister Zhu Guangyao and central bank Vice Governor Yi Gang both had reservations concerning how emerging economies would deal with the revenues leaving their countries in favor of healthier U.S. investments. They are urging the Fed to examine the possible effects of their fiscal policies. China, because of their cash reserves and monetary controls, is not likely to feel an impact. They do have a stake in the U.S. economy because of the 3.5 trillion dollars they have dedicated to covering U.S. debt. China’s economy is anticipated to grow about 7.5% this year but there are signs of a slow down, particularly as the Chinese government shifts focus from exports to domestic production and consumption.

During the G20 meeting, which will take place on September 5th and 6th, China is expected to participate in planning 100 billion dollar foreign currency fund that would act as a cushion for Brazil, Russia, India, China, and South Africa. This group is collectively known as the BRICS nations. China is dedicating a considerable amount of money to this cause.

For more details on the article Click Here

Want to see which jobs are available near you? Click here to see.