Federal Reserve Chairman Ben Bernanke offered his most pointed rebuttal yet on Friday to foreign critics who say the U.S. central bank's easy-money policies are causing inflation and asset bubbles abroad.
The rest of the world has an interest in the U.S. recovery that his policies are spurring, Mr. Bernanke argued in prepared remarks he plans to deliver in Paris as finance leaders from the Group of 20 nations gather.
Chairman of the Federal Reserve Ben Bernanke talked to Senators at the Senate Banking Committee in Washington on Feb. 17.
He said policy makers abroad have plenty of tools to fight inflation and asset bubbles themselves, including allowing their exchange rates to adjust higher to prevent overheating. Mr. Bernanke also said surging growth in developing economies, spurred in part by their own economic policies, were causing trouble for America.
"Spillovers can go both ways," he said. "Resurgent demand in the emerging markets has contributed significantly to the sharp recent run-up in global commodity prices."