Sumary of Yellen tells world’s big economies: spend big, danger lurks:
- Treasury Secretary Janet Yellen on Thursday warned of the risk of a permanent divergence in the global economy in the wake of the COVID-19 crisis, and urged major economies to inject significant new fiscal support to secure a robust recovery..
- REUTERS/Tom Brenner/File Photo In a statement to the steering committees of the International Monetary Fund and the World Bank, Yellen underscored the need for major economies to continue supporting developing countries as they grapple with the COVID-19 pandemic, climate change and high debt burdens..
- She urged the World Bank to help countries, particularly the world poorest, get timely access to COVID-19 vaccines, and backed accelerated negotiation to replenish the World Bank International Development Association fund for the poorest countries – a goal the bank aims to reach by December..
- The United States had pledged $4 billion to the COVAX global vaccine distribution initiative, Yellen said, urging others to join in..
- She said Washington, which so far has only loaned vaccines to Mexico and Canada, was exploring sharing excess doses, but gave no details..
- Yellen comments reflect the Biden administration focus on strong international cooperation to tackle global challenges – a sharp departure from the “go-it-alone”.
- Yellen said in remarks prepared for her first meeting with the IMF International Monetary and Financial Committee and the World Bank Development Committee..
- The former Federal Reserve chair said substantial fiscal and monetary support from major economies had improved the global economic outlook significantly, but more efforts were needed..
- IMF Managing Director Kristalina Georgieva told reporters she was encouraged that the United States and China – the world two largest economies – shared a consistent view about their recovery prospects, and their “recognition of the responsibility they have for positive spillover impacts.”…