–Don’t Expect Any Breakthroughs at G20 Meeting
By Heather Scott
MEXICO CITY (MNI) – Federal Reserve Vice Chair Janet Yellen
Saturday said she sees political impediments to quickly completing an
emergency financing backstop for the euro area.
Yellen, who was attending the meetings of the Group of 20 deputies,
ahead of the weekend meeting of finance ministers and central bankers,
told Market News International she does not expect any resolution of the
issue at this meeting.
Asked if European leaders appeared poised to finalize plans for the
crisis financing fund, Yellen told MNI, “I don’t know that they will. I
think there are a lot of political constraints in Europe that make it
difficult.”
The completion of the European Financial Stability Facility is
expected to be a key topic of the weekend meetings, with officials from
the United States, Canada, Mexico and others pushing EU officials to
rapidly finalize efforts to provide sufficient funding, that can be
rapidly deployed, to convince markets they can credibly deal with any
spillover if another crisis erupts.
Yellen said there had been a “lot of discussion of the additional
resources for the IMF and the firewall in Europe,” but she cautioned,
“Don’t expect any breaking news.”
U.S. Treasury officials have said repeatedly they will not support
additional resources for the IMF this year, and certainly not until the
European firewall is resolved.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MGU$$$,M$$CR$,MI$$$$,M$X$$$,M$M$$$,MMUFE$]
