Yam warns of volatility after US move
20-03-2009
The Chief Executive of the Hong Kong Monetary Authority, Joseph Yam, has warned investors that the US debt market will be volatile. He was speaking following the Federal Reserve's announcement that it will inject nearly US$1.2-trillion into the American economy. The Fed will spend US300-billion buying government bonds, and another US$750-billion acquiring mortgage-backed securities. Mr Yam said "printing money" to stimulate the economy was not a sustainable approach. He warned there would be implications for the financial markets when the US halted this policy. But he said he expected it to maintain such an approach until the economy recovered.
