11 Oct 2013
G20 meeting focused on US debt ceiling talks
FXstreet.com (Barcelona) - The leaders of the Group of 20 nations, who gathered for a two-day meeting in Paris yesterday, focused their talks mainly on the debt-limit debate in the US, which seems to be drawing to a favorable close. The officials warned that a failure to resolve the situation in a timely manner would have a disastrous effect on the global economy.
Negotiations between US Republicans and Democrats intensified on Thursday and the Fed chief Ben Bernanke and Treasury Secretary Jack Lew reassured the participants of the summit that an agreement would be reached in time to raise the 16.7 trillion dollar debt ceiling.
"The problem needs to be cleared quickly because United States is in a position where it is pulling the rest of the world economy," Bank of Japan Governor Haruhiko Kuroda emphasized. Still, the general expectation among the G20 officials is that the US will reach an agreement before the October 17 debt ceiling deadline expires.
"It is quite clear that America has been pulled back from the brink, as sensible people expected," Australian Treasurer Joe Hockey said.
The G20 communique, due out later today, will contain the conclusions from the meeting on how to boost global growth and how would the world economy be affected by a potential US default.
Negotiations between US Republicans and Democrats intensified on Thursday and the Fed chief Ben Bernanke and Treasury Secretary Jack Lew reassured the participants of the summit that an agreement would be reached in time to raise the 16.7 trillion dollar debt ceiling.
"The problem needs to be cleared quickly because United States is in a position where it is pulling the rest of the world economy," Bank of Japan Governor Haruhiko Kuroda emphasized. Still, the general expectation among the G20 officials is that the US will reach an agreement before the October 17 debt ceiling deadline expires.
"It is quite clear that America has been pulled back from the brink, as sensible people expected," Australian Treasurer Joe Hockey said.
The G20 communique, due out later today, will contain the conclusions from the meeting on how to boost global growth and how would the world economy be affected by a potential US default.