Australian treasurer: Global credit crisis isn't over
The global credit crisis is not over and there remain large losses that have not yet worked through the U.S. financial system, Australian Treasurer Peter Costello said on Friday.
MELBOURNE: The global credit crisis is not over and there remain large losses that have not yet worked through the U.S. financial system, Australian Treasurer Peter Costello said on Friday.
``It isn't entirely clear who is holding the ultimate risk in respect to these losses,'' he told reporters in his home state of Victoria. ``The crisis isn't over; it still has some way to go.''
Costello said he welcomed the U.S. Federal Reserve's decision earlier this week to cut official interest rates as an ``important confidence building measure for the U.S. economy.'' The U.S. central bank lowered the fed funds rate a greater-than-expected half percentage point to 4.75 percent.
The treasurer said Australia ``will not be immune'' from the crisis, and had already seen some losses.
``The important thing is to keep our economy strong,'' Costello said. ``Our economy is growing faster than the U.S., our budget is stronger than the U.S. and we have to make sure we have steady, experienced management to get us through what will have global implications arising out of the U.S.''
``It isn't entirely clear who is holding the ultimate risk in respect to these losses,'' he told reporters in his home state of Victoria. ``The crisis isn't over; it still has some way to go.''
Costello said he welcomed the U.S. Federal Reserve's decision earlier this week to cut official interest rates as an ``important confidence building measure for the U.S. economy.'' The U.S. central bank lowered the fed funds rate a greater-than-expected half percentage point to 4.75 percent.
The treasurer said Australia ``will not be immune'' from the crisis, and had already seen some losses.
``The important thing is to keep our economy strong,'' Costello said. ``Our economy is growing faster than the U.S., our budget is stronger than the U.S. and we have to make sure we have steady, experienced management to get us through what will have global implications arising out of the U.S.''
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