News Summary: ECB official defends bond plan

ECB official: bond purchase plan aims to carry out monetary policy, not help governments

Associated Press

DID NOT: A top European Central Bank official rejected accusations that the bank has exceeded its powers during the financial crisis, telling Germany's supreme court that its bond-buying program was only a tool to ensure that its monetary policy works.

DID TO: The Federal Constitutional Court held a second day of hearings to weigh allegations that the ECB's plan to purchase government bonds amounted to financing for governments, which is illegal. Critics also say it exposes taxpayers to potential losses and threatens the ECB's independence.

DOING MY JOB: Joerg Asmussen told the eight judges that the program is not meant to rescue governments in the 17-country eurozone but only to help the ECB conduct its monetary policy. It is tasked with keeping inflation close to but below 2 percent.

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