German finance minister raps Fed's market-spooking communication

24th February 2016, Comments 0 comments

German Finance Minister Wolfgang Schaeuble urged central bankers to take more care when making comments, as he criticised the US Federal Reserve for inconsistent communication that he said destabilised the markets.

The finance chief of Europe's biggest economy told national news agency DPA he would, during a G20 meeting in Shanghai, "call on central bankers for better communication, so as to create more stability and reliability".

Schaeuble said he did not understand recent statements by the US central bank, which had said in December it was planning to tighten its monetary policy, "before giving indications in the other direction four weeks later".

German government ministers rarely speak out publicly about central banks for fear of being accused of trying to influence monetary policy.

Schaeuble, known for being frank, has nevertheless openly criticised the European Central Bank lately for being too accommodative.

"We should give the financial markets more stability," he said, adding that he did not see signs of a new economic or financial crisis despite recent market turbulence.

He also did not appear to be worried about slowing Chinese economic growth, a key source of concern for the German export engine.

"The data from China isn't that bad," he said.

© 2016 AFP

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