The U.S. is communicating its monetary and fiscal policies as clearly as other major countries, a U.S. Treasury official said after finance chiefs from the Group of 20 nations called for greater transparency.
Central banks have ample opportunities to share their plans during forums such as the G-20, said the official, who spoke in Moscow today on condition of not being further identified.
After two days of talks in the Russian capital, the G-20 pledged “future changes to monetary policy settings will continue to be carefully calibrated and clearly communicated,” according to a statement released after the meeting.
Ministers devoted much of their discussion to concerns about the impact of quantitative easing, “how countries that issue reserve currencies will conduct that policy going forward, and how such policies will affect emerging-market countries and countries with developed economies,” said Russian Finance Minister Anton Siluanov, whose country holds the G-20 presidency.
Speculation about developed economies scaling back their unprecedented monetary easing has roiled emerging-market currencies and bonds since G-20 finance chiefs last met in April. From South Korea to South Africa, anticipation that the U.S. Federal Reserve would soon pare back its quantitative easing efforts drew concern and calls for coordination.
International Monetary Fund Managing Director Christine Lagarde said she alerted G-20 officials from advanced economies to indicate future adjustments in unconventional monetary policies, while urging emerging-market policy makers to prepare for future bouts of market volatility.
The U.S. is pursuing policies that support growth and create jobs, the official said, adding that expansion of the world’s largest economy benefits other countries. The U.S. economy will grow 2 percent this year, the World Bank said last month.
“You look at the core economy, it’s growing in the neighborhood of 2 percent right now, it looks like it might be growing a little faster at the end of the year,” Treasury Secretary Jacob J. Lew said in a July 18 interview with Bloomberg Television’s Peter Cook. “I think that if you look at Europe, 2 percent is far beyond their expectations.”
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