NEW DELHI – President Barack Obama on Monday voiced hearty support for the Federal Reserve’s decision to pour money into the economy, saying it was one of several “extraordinary measures” called for in troubled times.
“We can’t continue to sustain a situation in which some countries are maintaining massive surpluses, others massive deficits,” Obama said during a joint news conference with Indian Prime Minister Manmohan Singh, when “there never is the kind of adjustment with respect to currency that would lead to a more balanced growth pattern.”
Although pointing out that he does not control the Fed or weigh in on policies such as the decision to pump $600 billion into the American economy, Obama essentially defended the move against international criticism.
The German finance minister, for instance, recently said that it “doesn’t add up” that the Americans complain about Chinese currency manipulation and then “with the help of their central bank’s printing presses, artificially lower the value of the dollar.”
Obama suggested that the world has an interest in balancing out the value of currencies around the world, if only because weighting the system against the U.S. is bad for the global economy.
“The worst thing that could happen to the world economy, and not just ours but the entire world’s economy, is if we end up being stuck with no growth or very limited growth,” Obama said.
The Fed’s mission is the same as his, he said – to “grow” the U.S. economy.
The Associated Press