Obama, G-20 Will Pledge to Keep Stimulus, Froman Says

President Barack Obama and other Group of 20 leaders next week will pledge to keep economic stimulus policies in place until a recovery is certain, the White House’s G-20 liaison said.

In talks in Pittsburgh, the U.S. also will seek to phase out fossil-fuel subsidies and agree on how to rein in bankers’ bonuses, Michael Froman, a deputy assistant to Obama, said in an interview yesterday. The U.S. wants to build on a G-20 agreement in London earlier this month to toughen oversight of compensation practices and curb pay excesses, he said.

“It is important to plan for exit but it is still too early to begin to withdraw stimulus,” Froman said in the interview. The global financial situation has “changed dramatically” since the April G-20 meeting in London, he said in a separate briefing with reporters.

The leaders gather as economies from Brazil to Japan show signs of emerging from recessions. The G-20, a collection of industrial economies and emerging nations, will try to ensure the expansion is balanced, a goal economists say will require more savings in the U.S. and greater domestic demand in countries such as China.

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