Some in G20 say Fed moves hurt other states-Brazil

Published 11/05/2010, 01:09 PM
Updated 11/05/2010, 01:12 PM

CHICAGO, Nov 5 (Reuters) - There is a growing consensus among some G20 countries that the Federal Reserve's program of pumping cash into the U.S. economy fuels the risk of bubbles abroad, Brazil Central Bank Governor Henrique Meirelles said on Friday.

A "common theme" is emerging that "excess liquidity in the U.S. is creating problems in other countries," Brazil's central bank chief told reporters in Chicago. "It is important this is addressed" in South Korea, location of the upcoming Group of 20 summit.

The Fed this week said it would pump another $600 billion into the U.S. economy in an effort to boost sluggish growth and help bring down a stubbornly high unemployment rate. The program, known as quantitative easing, has drawn criticism from a number of emerging countries who are feeling the effects from a deluge of foreign cash, pushing up local currencies.

The central bank chief spoke after meeting with CME Group Inc CEO Craig Donohue. (Reporting by Ann Saphir; Editing by James Dalgleish)

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