G20 demands swift action from us in budget dispute

G20 demands swift action from us in budget dispute

"The u.S. Needs to act urgently to address near-term financial uncertainties," G20 finance ministers and central bank chiefs said in washington on friday.

After a meeting at the annual meeting of the international monetary fund (IMF), the G20 countries did not elaborate in their rather brief statement on the budget blockade in the USA, which has been going on for days. Previously, the IMF had also held back with recommendations to policymakers in washington.

Without an increase in the debt ceiling, the world’s rough economy is already threatened by the 17. October to the insolvency. The head of the u.S. Federal reserve, ben bernanke, and treasury secretary jack lew are reported to have promised the G20 partners a timely solution. Since 1. October, the USA also does not have a valid budget. That’s why hundreds of thousands of state employees have been put on forced leave.

Russian finance minister anton siluanov, acting head of the G20, said after the meeting that various consequences of failure had been discussed: "but optimism had prevailed"." The americans had affirmed to do everything in their power.

The conflict over a higher U.S. Debt ceiling, the future monetary policy of the federal reserve and weaker growth in many emerging and developing countries are the main issues in washington. G20 reiterates call for rate changes in monetary policy to be "well considered and clearly communicated". The background to this is the concern that an exit from the extremely loose monetary policy of the USA, for example, will trigger new turbulence, especially in emerging economies.

Just over a month ago, the G20 came together for the summit of heads of state and government in the russian city of st. Petersburg. Petersburg came together. New decisions – for example on financial market regulation – were therefore not expected. In their declaration, the G20 ministers and central bank chiefs affirmed that there were signs of economic recovery in the developed countries, but slower growth in many emerging markets.

Among the challenges were the unacceptably high level of unemployment in many countries and the continuing risks of a downturn. The G20 countries want to present further comprehensive growth strategies by the time of the G20 summit in brisbane next fall under the australian presidency.

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