China Urges U.S. to Limit Global Risks From Fed Policy Shifts
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.
To contact the reporter on this story: Scott Rose in Moscow at firstname.lastname@example.org