Canada shows understanding of Fed tapering plans, ahead of G20

A G20 meeting in Moscow this weekend is likely to discuss the U.S. Federal Reserve's plans to taper its aggressive buying of bonds, a senior Canadian finance official said on Tuesday, but he declined to endorse emerging-market criticism of those plans.

A prominent feature of the talks among finance ministers and central bankers of the Group of 20 leading economies will be the increased market volatility that has emerged since they last met in Washington in April, the Canadian official said.

But there are many sources of that volatility, he said, appearing not to want to pin it all on the Fed, which has effectively said it was unsustainable to inject massive amounts of new cash forever. Canada would certainly support policies that manage and sustain the U.S. recovery, the official said.

(Reporting by Randall Palmer; Editing by Stacey Joyce)