The U.S. must act responsibly and with regard for other nations when implementing its policies for monetary easing, the top official of the central bank of China said on Tuesday during a panel discussion, according to published reports.
Speaking in the southern Chinese island of Hainan, governor Zhou Xiaochuan with the People's Bank of China said the U.S. ought to act responsibly and keep in mind the effects on the global economy when it executes steps to spur its domestic economy, Bloomberg reports.
"We agree very much that to overcome a very serious financial crisis, the U.S. needs to inject liquidity," the governor said, according to The Wall Street Journal, noting the step is necessary. "Inevitably, some emerging economies will suffer too much capital inflow."
The commentary is notable in that China hosts the globe's second-largest economy and the world's most rapidly developing economy while the U.S. hosts the globe's biggest system. However, in recent months, economic data has indicated China's development and growth has hit snags while the U.S.' economic future appears to be brightening.
The governor said the U.S. should act with regard to other nations as some emerging economies have endured increased risks of inflation due to the large amount of U.S. dollars to enter their economies.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
