G7 financial leaders warn of global economic uncertainty The US debt crisis
Kazuo Ueda, governor of the Bank of Japan (BOJ), Tokiko Shimizu, executive director at the BOJ, Joachim Nagel, president of Deutsche Bundesbank, Jon Cunliffe, deputy governor for financial stability at the Bank of England (BOE), Jerome Powell, chairman of the US Federal Reserve, Christine Lagarde, president of the European Central Bank (ECB), Tiff Macklem, governor of the Bank of Canada, Francois Villeroy de Galhau, governor of the Bank of France, Ignazio Visco, governor of the Bank of Italy, prior to the central bank session of the Group of Seven (G-7) finance ministers and central bank governors meeting in Niigata, Japan, on Saturday, May 13, 2023. Kiyoshi Ota/Pool via REUTERS
On May 13, 2566, Reuters news agencyThe Group of Seven (G7) financial leaders reportedly warned of deepening global economic uncertainty on Saturday. As they wrapped up a three-day meeting that was overshadowed by the U.S. debt ceiling impasse and the fallout from Russian invasion of Ukraine
Their gathering in the Japanese city of Niigata comes amid concerns about a U.S. debt default. causing uncertainty to the overall world This has been overshadowed by stubbornly high inflation and the failure of US banks.
“The global economy has shown resilience to many shocks. Including the COVID-19 pandemic. Russia's war of aggression against Ukraine and related inflation pressures …We need to be careful. Maintain flexibility and flexibility in macroeconomic policy. amid increasing uncertainty about the global economic outlook,” the leaders said in a statement after the meeting.
The statement did not address the outstanding US debt ceiling issue. This affects the market at a time when borrowing costs are rising due to monetary tightening by the US and European Federal Reserves.
U.S. Treasury Secretary Janet Yellen said on Friday that She will meet with senior Wall Street bankers next week about the possibility that Washington could default on its debt for the first time since 2332.
“Obviously. Distress in the world's largest economy will be negative for everyone,” World Bank President David Malpass told Reuters on the sidelines of the G7 meeting the same day. “The consequences will be bad if we don't succeed.”
For banking problems The statement said policymakers would address "information, supervision and regulatory gaps in the banking system".
While warning that inflation continues to rise, the G7 central banks reiterated their commitment to maintaining price stability and ensuring that inflation expectations remain healthy. and condemned Russia's invasion of Ukraine. and pledged to strengthen inspections of cross-border transactions between Russia and other countries. China is also in the leaders' minds. This year's president is Japan. It is spearheading efforts to diversify supply chains and reduce its heavy reliance on the world's second-largest economy.
