Geithner Discusses US/China Relationship, Comments on Euro Zone Concerns
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U.S. Treasury Secretary Timothy Geithner sat down with FOX Business Network on Tuesday to discuss his take on the current state of world currencies and the relationship between the U.S. and China within the global economy.
Geithner started by stating that the global economy is in a better position to handle the issues at hand than it would have been in the last couple of years. The regulator also admitted that he is seeing encouraging signs in not only the US, but also in emerging markets such as China.
"We come into this in a much stronger position to manage the challenges ahead,” he said. “And Europe has laid out a very powerful set of policies, financial commitment to help them manage through this. And absolutely they have the capacity to manage it. If you just step back for a sec, the underlying numbers, and you can see them in the United States, broader confidence, strength of U.S. exports, pace of growth in China and around the world, is encouraging."
Geithner believes that Europe needs to take swift and purposeful action to contain and correct the issues arising within the euro zone, and that officials in the region must act with force to implement reforms and financial commitments, but also with speed and care.
Continuing, Geithner said that China needs to take measures to control its rapid rate of growth and emerging inflation. Still, Geithner is encouraged that China is showing stronger domestic demand and consumption, pushing up the demand for U.S. exports in the world’s most populous nation faster than in the rest of the global economy.
“China recognized again that these are, of course, their policies. But they have global implications, and I'm sure they'll take that into account.”
Geithner also underlined just how important it will be for the United States and the rest of the world to reduce deficits quickly and substantially.
“The president has laid out a very detailed, comprehensive set of policies that will bring those deficits down very dramatically over the next several years. We're going to let this commission think through this and make some recommendations. And, again, I think they recognize -- and you hear them say this when you hear -- when you see Erskine Bowles now was just talking about this, you see in how they talk an absolutely sophisticated, cold-hearted, cold judgment, recognition, reality about how challenging this is going to be.“
Geithner started by stating that the global economy is in a better position to handle the issues at hand than it would have been in the last couple of years. The regulator also admitted that he is seeing encouraging signs in not only the US, but also in emerging markets such as China.
"We come into this in a much stronger position to manage the challenges ahead,” he said. “And Europe has laid out a very powerful set of policies, financial commitment to help them manage through this. And absolutely they have the capacity to manage it. If you just step back for a sec, the underlying numbers, and you can see them in the United States, broader confidence, strength of U.S. exports, pace of growth in China and around the world, is encouraging."
Geithner believes that Europe needs to take swift and purposeful action to contain and correct the issues arising within the euro zone, and that officials in the region must act with force to implement reforms and financial commitments, but also with speed and care.
Continuing, Geithner said that China needs to take measures to control its rapid rate of growth and emerging inflation. Still, Geithner is encouraged that China is showing stronger domestic demand and consumption, pushing up the demand for U.S. exports in the world’s most populous nation faster than in the rest of the global economy.
“China recognized again that these are, of course, their policies. But they have global implications, and I'm sure they'll take that into account.”
Geithner also underlined just how important it will be for the United States and the rest of the world to reduce deficits quickly and substantially.
“The president has laid out a very detailed, comprehensive set of policies that will bring those deficits down very dramatically over the next several years. We're going to let this commission think through this and make some recommendations. And, again, I think they recognize -- and you hear them say this when you hear -- when you see Erskine Bowles now was just talking about this, you see in how they talk an absolutely sophisticated, cold-hearted, cold judgment, recognition, reality about how challenging this is going to be.“
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