Fed Chairman Ben Bernanke on Thursday rejected the idea that low U.S. interest rates were helping to fuel speculation overseas and potentially inflating dangerous new asset bubbles.
"It's not the United States' responsibility to ensure that there are no misalignments on every economy in the world," Bernanke said. "I think it needs to be understood that United States monetary policy is intended to address both financial and economic issues in the United States."
Earlier this month, a senior Chinese official charged that the Fed's pledge to keep U.S. rates low for an extended period, coupled with the weak U.S. dollar, were creating "new systemic risk" for the global economy.
1"Bernanke: overseas bubbles not fault of low U.S. rates" - Reuters