NEW CRITICISM TO THE MEASURES OF THE FED: China warns against a shock on emerging markets

• Obama: "The Fed does not get its orders from the White House"

• Russia wants the US to consult with the G20 when making major decisions

The recent decision of the US Central Bank (Federal Reserve - Fed) to support the economy by injecting an additional 600 billion dollars in the American banking system could create a shock on the financial markets of emerging countries, by causing major capital inflows into those countries, said Zhu Guangyao, the Chinese deputy finance minister of China.

The Beijing official said yesterday that he intends to have "candid discussions" with the United States, after the Fed announced that it would allocate 600 billion dollars on purchasing treasury certificates from the banks, in the next eight months, a measure intended to help the economic recovery.

"On a global level, we have 10,000 billion dollars in available capital, an amount far higher than the one that existed in the beginning of the global financial crisis", Zhu said, and he added: "The U.S. has not fully taken into consideration the shock of excessive capital flows to the financial stability of emerging markets".

The United States need to recognize their role and the responsibility when it comes to the world economy, Zhu Guangyao concluded.

China and Germany are the most vocal critics of Washington"s program, which was yesterday defended by US president Barack Obama. He said, during his visit to India, that the Fed"s warrant is to support the US economy, which would benefit the entire world. Obama declined to answer whether the decision of the American Central Bank could depreciate the dollar, but he said that the Fed does not get its orders from the White House, and it would therefore not be appropriate to comment on the decisions of the Fed.

The Fed"s decision also surprised Russia. The Moscow officials want the Fed to consult with the G20 before making important decisions, such as the program to purchase 600 billion dollars worth of securities.

"The Russian president, Dmitri Medvedev, will insist that such actions be taken after preliminary discussion with other G20 members", said Arkady Dvorkovich, Russia G20 negotiator.

The Fed"s program is a domestic affair of the US, to which Russia is not opposed "on principle", Dvorkovich said, but he added that such important decisions need to be coordinated with other members of the G20.

The chairman of the Fed, Ben Bernanke, insisted on answering to the criticism of the plan he announced last week, ensuring the American Central Bank had the necessary means to withdraw the injected liquidity in time and to avoid the rise of inflation.

The Fed"s decision was criticized by other countries as well. The leaders of the major emerging economies of Latin American and Asia warned that they would review further measures to mitigate the additional 600 billion dollars that the Fed wants to use to support the economy.

Emerging countries consider that the decision of the Fed could lead to the appreciation of their own currencies against the dollar.