Global fi­nance lead­ers pledge closer co­op­er­a­tion

Daily Local News (West Chester, PA) - - MARKETPLACE -

World fi­nance of­fi­cials on Fri­day promised to co­op­er­ate more closely and uti­lize all their pol­icy tools to bol­ster an ane­mic global re­cov­ery that is now be­ing threat­ened by an anti-trade back­lash in the United States and re­newed mar­ket un­ease about Bri­tain’s planned exit from the Euro­pean Union.

Of­fi­cials of the Group of 20 ma­jor eco­nomic pow­ers ac­knowl­edged a broad range of new risks rang­ing from Don­ald Trump’s vows to im­pose penalty tar­iffs to pun­ish China and other coun­tries he be­lieves are pur­su­ing un­fair trad­ing prac­tices to ex­ten­sive wor­ries over whether Bri­tain’s planned exit from the EU could fur­ther drag down an al­ready weak global re­cov­ery. Chi­nese Fi­nance Min­is­ter Lou Ji­wei, the cur­rent chair­man of the G-20 fi­nance group, said fi­nance of­fi­cials re­al­ized the global sit­u­a­tion “re­mains chal­leng­ing and com­pli­cated” with growth in many na­tions still too slow de­spite years of ag­gres­sive mone­tary poli­cies by the Fed­eral Re­serve and other cen­tral banks.

“Un­cer­tain­ties and risks fac­ing the world econ­omy have in­creased,” Lou told re­porters. “Geopo­lit­i­cal ten­sions are grow­ing, ter­ror­ist at­tacks are fre­quent ... all of th­ese fac­tors have ma­jor im­pli­ca­tions on the in­ter­na­tional eco­nomic and fi­nan­cial mar­kets.”

The G-20 dis­cus­sions, which be­gan with a work­ing din­ner Thurs­day night, in­cluded fi­nance min­is­ters and cen­tral bank gover­nors from tra­di­tional eco­nomic pow­ers such as the United States, Ger­many and Ja­pan and emerg­ing economies such as China, Brazil and In­dia. Trea­sury Sec­re­tary Ja­cob Lew and Fed­eral Re­serve Chair Janet Yellen rep­re­sented the United States.

Lew told re­porters after the G-20 dis­cus­sions that he was en­cour­aged that there was grow­ing sup­port among other na­tions that more tools needed to be em­ployed be­yond mone­tary pol­icy to boost weak global growth, a po­si­tion the Obama ad­min­is­tra­tion has taken for a num­ber of years.

“From China to Canada ... we are see­ing more will­ing­ness,” Lew said. “I con­tin­ued to press for all tools to sus­tain growth.”

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