Not Seen Signs of Liquidity Rush to Emerging Markets yet Post-Fed Move

18 Sep 2012
Fed's Move Right Step, But Not Sufficient Alone
KUALA LUMPUR--The U.S. Federal Reserve's recent move to buy mortgage-backed bonds isn't sufficient alone to support U.S. economic recovery efforts though it is a step in the right direction, said a managing director of the World Bank Tuesday. "It isn't going to be sufficient alone, major work is needed in the real economy side," Mahmoud Mohieldin told reporters on the sidelines of an Islamic finance conference. He said the Fed's move hasn't yet caused a rush of liquidity to emerging markets, and that he expects the euro zone to follow suit by taking support measures.