China urged the U.S. to limit global risks from shifts in monetary policy, while adding that there’s no need for a rescue plan for emerging markets, as Group of 20 leaders met at a summit in St. Petersburg, Russia.
An exit from monetary-easing policies poses a major challenge for the world economy, Vice Finance Minister Zhu Guangyao told reporters in the Russian city today, speaking through a translator. The U.S. should be mindful of spillover effects, said Zhu, who called for greater coordination between nations.
Emerging markets, which helped pull the world out of a recession after the global financial crisis, now face an exodus of cash and sliding currencies in anticipation of the Federal Reserve’s eventual tapering of its $85 billion in monthly bond purchases. Developed economies are turning into global growth engines as some emerging-market counterparts decelerate, the International Monetary Fund told G-20 leaders today.
Zhu said that now is “no time to be arrogant” on monetary policies.