Yellen Wins G-20 Praise as Emerging Markets’ Angst Eased

Janet Yellen, in her first global forum as Federal Reserve chair, won praise for helping smooth emerging-market concerns as the Group of 20 nations pledged to be mindful of international repercussions of monetary policy.

In the lead up to the concluding communique released yesterday in Sydney, India and South Africa were among nations calling for the Fed to consider spillovers as it withdraws stimulus. Officials from the U.K. andAustralia had backed the Fed’s right to set policy to its own needs and said some were using the impact of tapering as an excuse for domestic failings.

Announcing the G-20’s priorities, Australian Treasurer Joe Hockey said Yellen was “hugely impressive” in dealing with the issue of taper fallout. “There was proper recognition that the movement of monetary policy in major developed countries either way, whether it be tightening or easing, is going to have an impact on emerging economies,” he said in a speech.