The G7 ministerial of finance ministers and central bank governors in Niigata, Japan was not the happiest of places, from all reports. Nervousness over the global financial crisis, and the unresolved matter of the U.S. debt ceiling, which is occupying all of President Joe Biden’s time, apparently had people on edge.
As soon as Treasury Secretary Janet Yellen arrived on May 11, even before the meeting began, she told a press conference that a failure to reach an agreement on the debt ceiling and an ensuing default on U.S. obligations “would produce an economic and financial catastrophe,” which would throw U.S. global leadership into question. Adding to the nervousness, a meeting Biden was supposed to have today with members of Congress to discuss the debt ceiling was postponed until early next week, and there is some doubt now whether he will be able to attend the May 19-21 G7 Leaders Summit in person in Hiroshima, if the issue isn’t resolved.
Bank of Japan Governor Kazuo Ueda told Reuters that if the problem isn’t solved, “the immediate fallout is something U.S. authorities would have to deal with. But (the G7 group) will likely scrutinize the situation,” as well.
