Indonesia Prepares Defense for Fed Tapering

Indonesia needs to prepare its defense for the day when the Federal Reserve starts to pump less money into global markets, its finance minister said Thursday.
“It’s inevitable that the Fed will one day end quantitative easing,” Muhamuad Chatib Basri told reporters in Hong Kong. “We need to focus on stabilization.”

The southeast Asian nation is grappling with a slowing economy, rising inflation, a weakening currency and a vast current account deficit.
And investors are anxious about next year’s presidential election, which will be the first time the country has shuffled its leadership in a decade.
Fears that the U.S. Federal Reserve would roll back its $85 billion a month bond-buying program as early as September had prompted sharp capital outflows from emerging markets, including Indonesia, in recent months.

via CNN

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