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Earlier today, the finance chief of Europe's biggest economy – Germany's Finance Minister Wolfgang Schaeuble – urged central bankers to take more care when making comments to the public. His criticism comes just two days before the G20 meeting of finance ministers and central bank governors kicks off in Shanghai, China.
Schaeuble directed his warnings in particular toward the U.S. Federal Reserve. He believes its inconsistent communications with the public do nothing more than destabilize markets.
For example, Schaeuble said he did not understand recent statements made by the Fed, which had said in December it was planning to tighten its monetary policy "before giving indications in the other direction four weeks later," reported Channel News Asia earlier today.
When asked by Bloomberg Television on Feb. 8 about his feelings on the possible demise of Germany's chief lending institution Deutsche Bank AG (ETR: DBK), Schaeuble simply shrugged and said he had no concerns.
But perhaps he should be more concerned. Deutsche Bank posted a huge $7.4 billion loss for 2015 on Jan. 29 – its first annual loss since 2008. Shares of the German banking leviathan are down nearly 35% so far this year – down from its January start of $22.52 to today's $14.65.
- Channel News Asia: German Finance Minister Raps Fed's Market-Spooking Communication