The U.S. Federal Reserve's new policy known as quantitative easing will generate distortion in the global market and hamper Brazil's efforts to curb the rise of the Brazilian real, Brazil's Central Bank Governor Henrique Meirelles said Friday.
"The quantitative easing creates excessive liquidity, which flows to countries such as Brazil," Meirelles said.
The Fed said it would pump another $600 billion into the U.S. economy in an effort to boost the sluggish economy and bring down the stubbornly high unemployment rate.
According to Meirelles, the Fed's new move will be addressed in the G20 Summit in Seoul, and he will work toward an agreement that will help the global economy.
Meirelles denied that the Brazilian Central Bank is preparing further measures to stop the fall of the U.S. dollar in the country.
Brazilian Finance Minister Guido Mantega also expressed his disapproval of the Fed's decision, saying that just pumping dollars into the market is not a solution unless other measures to stimulate consumption and generate jobs are taken.
(Xinhua News Agency November 6, 2010)