Bernanke says Chinese $ holdings not problem

China`s accumulation of United States debt is not a problem for the US or for the Federal Reserve monetary policy, Federal Reserve chairman Ben Bernanke said in a letter dated 16 March but released on Monday 27 March.

"Because foreign holdings of U.S. Treasury securities represent only a small part of total U.S. credit market debt outstanding, U.S. credit markets should be able to absorb without great difficulty any shift of foreign allocations" said Bernanke in a letter to Senator Richard She