RTRS: U.S. Fed QE2 decision not a good one -Eurogroup's Juncker
Nov 8 (Reuters) - The chairman of euro zone finance ministers Jean-Claude Juncker criticised on Monday additional bond purchases by the U.S. Federal Reserve, pointing to a risk that they would not boost the U.S. economy but push capital into emerging economies.
"I don't think it is a good decision," Juncker told a European Parliament hearing.
"You're fighting debt with more debt. There is great criticism of the Chinese policy, but in a different way they (the United States) are pursuing exactly the same policy," Juncker said.
"I see the risk of inflating the situation and making it more difficult to get out of the crisis."
He said that the bond purchases would not necessarily boost investment among U.S. companies or consumption among U.S. consumers.
"I think there's a risk of passing on volumes of solvency to emerging countries which those countries cannot absorb. So I think the decision made by the Federal Reserve needs to be supplemented with other points of clarification so we needn't worry about it," Juncker said.