Jun.21 - German Chancellor Angela Merkel says the U.S. Federal Reserve has chosen the right time frame for cutting back its bond-buying stimulus programme later this year. (ROUGH CUT - NO REPORTER NARRATION)
ROUGH CUT - NO REPORTER NARRATION German Chancellor Angela Merkel says the U.S. Federal Reserve has chosen the right time frame for cutting back its bond-buying stimulus programme later this year. Merkel was speaking at the St Petersburg International Economic Forum, alongside Russian President Vladimir Putin on Friday (June 21). Comments by the Federal Reserve Chairman Ben Bernanke earlier in the week unsettled investors and triggered a sell-off in markets internationally. Putin said the withdrawal of monetary stimulus was an expected and necessary development. (SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL, SAYING: "l also think that the time frame which the Fed President obviously set is the right time frame. We should not forget that actually the liquidity was the reason for the last big financial crisis which we had in 2008-2009. There's no way we can plunge into such a crisis again". (SOUNDBITE) (Russian) RUSSIAN PRESIDENT VLADIMIR PUTIN, SAYING: "As for the reaction to Mr. Bernanke's (Federal Reserve President) statement, first of all, such a statement was expected by us - a correction had to come sooner or later. We can't continously inject liquidity into the economy without solving fundamental tasks that make it impossible to improve the situation."