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China Finance Minister Warns Fed Over Risks of Exiting Easy-Money Policies
But it should pay careful attention to the impact of its policy on the international financial system and properly handle the timing, tempo and intensity of its quantitative easing monetary policy exit, Mr. Lou said through an interpreter. The Fed sparked a torrent of capital flow reversals last month as officials outlined a possible exit plan from the banks easy money policies. The prospect of higher interest rates caused investors to restructure their portfolios, stoking volatility in currency, bond and equity markets around the globe.