European Central Bank on the new U.S. disturbed by a loose monetary policy

Abstract: More importantly, though U.S. officials stressed that want to see a strong dollar, but the second round of devaluation in disguise is undoubtedly liberal, even though recent reports indicate that the scale may be relaxed moderately than expected.

When the Fed next week will decide whether to start the second round of quantitative easing, the European Central Bank officials have acted increasingly fear and trepidation.

Taking into account the further easing of the impact of the global financial system, the European level are taboo to talk about it in public. But in private, they feel the Fed acts this unease and anxiety.

Some officials said the second round of quantitative easing, the market will convey the message that the negative aspects of weak economic recovery. When the financial markets will be the first one, and may make an extreme reaction. Others said, and further printed bills significantly stimulating effect on the economy more good than harm, especially in the normalization of monetary policy the Fed return (eg interest rates) on the road.

Others pointed that the Fed is doing to their lives at risk, they do not grasp the scale of expansion after the loose control of the negative risks properly.

More importantly, though U.S. officials stressed that want to see a strong dollar, but the second round of devaluation in disguise is undoubtedly liberal, even though recent reports indicate that the scale may be relaxed moderately than expected.

"This is no essential difference between FX intervention." Senior source said, "almost no risk of deflation in the United States, and their surface replenishment of this act to stimulate consumption, but is 'fair without' performance."

A senior official said not without regret: "While the U.S. government has repeatedly stressed the strong dollar policy, but our interpretation is that only in the U.S. His comments for the first two pave the way for quantitative easing."

China willing to deepen the reform of RMB exchange rate, the Japanese yen rose eyeing the occasion, the European Central Bank increasingly worried that the euro against the dollar parity at the top does not reflect economic fundamentals, which could make their attacks again become a financial predators object.

"But we are not prepared to intervene in currency markets, and will adhere to the international community to avoid excessive volatility of foreign exchange commitments." The official added.

Frankfurt, said officials are not sure whether the second round of easing upward pressure on the euro will increase, because the euro's recent rally may have reflected this expectation. ECB certain "three hands", said the implementation of the second round from Japan shows the effect of relaxed, which is not the impact of currency, the yen is still closer and closer to a record high.

However, they fear, the Fed expanded the euro will continue to rise after the generous size. Second round of the biggest drawbacks is that loose, suggesting that the economy will double dip, the market will worry about whether the United States will experience the Japanese lost decade.