Governor Agustin Carstens of the Central Bank of Mexico urged the US Federal Reserve to make its plans regarding the reduction of its bond purchases clearer. He said the move by the US central bank to taper its USD 85 billion monthly bond purchases would challenge emerging economies the most.

In a panel discussion at the annual policy symposium sponsored by the Federal Reserve, Carstens said while the accommodation helped stabilize the world economy, it had "undesirable side effects" on emerging markets. Carstens urged central bankers, "What would have the most impact right now would be to have a much better, clearer implementation of the tapering. If you keep pampering the markets, the inflow of capital can be such that more stability risks can be accumulated in emerging-market economies."

Federal Reserve Chairman Ben Bernanke testified in Congress in May that the fed would be reducing its bond purchases. Since then, Bloomberg data showed stocks in emerging markets losing more than USD 1 trillion in market value.