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Obama: Federal Reserve $600 Billion Stimulus Not Designed to Weaken Dollar
Obama said the decision by the Federal Reserve to pump $600 billion into the U.S. economy was designed to give a boost to a slow recovery and address fears of deflation. Germany and other members of the Group of 20 of the largest economies meeting here this week have complained that the infusion of cash will devalue the dollar and hurt their exports to the United States.
The Fed operates independently from the executive branch and Obama has been careful to avoid interfering in its actions. But he broke from his policy of not commenting on the Fed decision to respond to those complaints.
"From everything I can see, this decision was not one designed to have an impact on the currency on the dollar, it was designed to grow the economy," Obama said at a news conference following the G-20 summit.
He added: "There was some concern that we had very low inflation, that a huge danger in the United states is deflation and that we have to be mindful of those dangers going forward."
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