US and Europe should look in the mirror and correct economic path, says Guedes

The United States and Europe “should look in the mirror” and change fiscal and monetary policies, defended this Wednesday (12) the Minister of Economy, Paulo Guedes, in Washington.

Guedes went to the American capital to participate in the annual meetings of the World Bank and the IMF (International Monetary Fund). He has advocated that central banks tighten the siege against inflation, and said in the traditional statement to the body that the IMF has neglected global inflation and given wrong guidance.

This Wednesday, in a conversation with journalists, he demanded a stronger response from the most advanced economies. “Brazil is on the road to prosperity, it is doing well, coming out of this mess. Regarding the United States and Europe, this is the third or fourth meeting that we have to warn that they are far behind the curve, they are sleeping at the wheel,” he said. . The minister also joked that “it’s impressive, because usually IMF meetings are used to warn governments of emerging economies to do the right thing.”

“I think they should look at themselves in the mirror, because they are not doing a good job. They are far behind the curve in fiscal policies, they are far behind the curve in monetary policies. Inflation is out of control here”, said the minister, before also defend a more incisive action of international bodies for the end of the War in Ukraine to appease the inflation of food and energy.

The IMF is meeting this afternoon to discuss the economic repercussions of the war, but Guedes was unaware of the meeting. Brazil has avoided condemning Russia for the invasion of Ukraine in bodies such as the UN (United Nations).

A report released by the IMF this Wednesday, the “Fiscal Monitor”, pointed out that Brazil could have spent half of what it spent on emergency aid in the first years of the pandemic. Guedes questioned the report. “The IMF has to talk less nonsense and work a little more to alert the Americans, the Europeans. While they are pulling our ear, Brazil is growing more, inflation is lower”.

He again compromised, as he did on Tuesday, and said he did not believe “that the IMF is ill-willed with Brazil”, but reaffirmed that there are errors in the entity’s models. Guedes also defended advances by the Jair Bolsonaro government (PL) and praised Auxílio Brasil. “If the IMF is thinking that we spent too much on social programs, it doesn’t understand anything. Because we’re going to continue spending,” he said.

Also this Wednesday, in a parallel agenda to the IMF and World Bank events, Guedes participated in a JPMorgan conference with bankers and economists, where he defended the economic policies of the current government.

Closed to the press, the meeting was moderated by JPMorgan’s chief economist for Brazil, Cassiana Fernandez. The minister defended the reduction of public debt to a target of 60%, privatization and the spending cap. On Tuesday, he had already met with businessmen at the US Chamber of Commerce. The list included executives from FedEx, PepsiCo, Pfizer, WestRock, Cargill and ExxonMobil, among others.

Also in the city is the president of the Central Bank, Roberto Campos Neto. This Wednesday, he met with presidents of Latin American central banks. During the day, he will also meet with Thomas Jordan, president of the Swiss National Bank, and with Jean Lemierre, of BNP Paribas, one of the largest banks in Europe. In addition, he will also meet with former BC president and now director of the IMF’s Western Hemisphere Department, Ilan Goldfajn.

The executive director of the Fund, Afonso Belivaqua, also participates in the meeting. Campos Neto has avoided talking to the press during his visit to the American capital.