Recovery in global economies may be threatened by a slowdown in emerging markets if the US Federal Reserve does not provide more clarity on moves to reduce its support for financial markets, Indonesia’s finance minister has warned.
In the latest sign of rising alarm in emerging markets over the Fed’s plan to “taper” financial asset purchases, Chatib Basri told the Financial Times that uncertainty over US monetary policy could become a drag on economies such as Brazil, India and Indonesia, which are becoming ever more important contributors to global growth.
Speaking before the two-day G20 summit that starts in Russia tomorrow, he criticised the lack of “transparency about the process” of the US slowing its easy monetary policy. “We are living in an interdependent world, that’s why this issue needs to be discussed in a better way,” he said.