U.S. Fed official warns on currency wars

SOMERSET, N.J. Fri Jan 11, 2013 11:01am EST

SOMERSET, N.J. Jan 11 (Reuters) - Many countries are trying to use monetary policies to protect their currencies, a troubling sign of possible "currency wars," a top U.S. Federal Reserve official said on Friday.

Wading into the sticky debate that often pits developed economies against emerging economies, Philadelphia Fed President Charles Plosser said growing currency wars would not be a healthy development.

Easy money policies by major central banks such as the Fed or European Central Bank often strengthen currencies of developing countries, hurting those countries' exporters. That in turn has prompted some governments or central banks to ease their own polices in response.