SEOUL, Nov 11 (Reuters) - G20 leaders need to use their summit to question U.S. President Barack Obama on why the Federal Reserve launched a second round of monetary easing, European Commission President Jose Manuel Barroso said on Thursday.
Leaders begin their meeting in Seoul with many countries unhappy over the Fed’s decision to buy $600 billion of government debt. They contend it is generating global instability by strengthening their currencies against the dollar, inflating asset bubbles and fuelling inflation in their economies.
“I think it is important during the G20 summit to listen to President Obama and get a better understanding of the different aspects behind the decision of the Federal Reserve,” Barroso told reporters.
He said he believed growth of the United States is important but he understood the concerns other countries had about the Federal Reserve’s move.
“It is especially important to avoid negative spillover effects from action taken by one country on the rest of the world,” he said.
Reporting by Rachel Armstrong; Editing by Nick Macfie