G7 to examine market turmoil but won't rush to judgment: US
This week's Group of Seven finance ministers meeting will discuss the turmoil in financial markets, but will not rush to judgment on solutions, says a US official.
By Agencies |
WASHINGTON: This week's Group of Seven finance ministers meeting will discuss the turmoil in financial markets of the past few months, but leaders will not "rush to judgment" on solutions, a US official said on Wednesday.
US Treasury Under Secretary David McCormick said the upheaval in markets over the past few months will be part of Friday's discussions along with trade, energy, the environment and reform of international financial institutions.
"Clearly the recent financial market turmoil will be a focal point and a good part of the G7 meeting will be devoted to this issue," said McCormick.
The G7 meeting in Washington will include finance ministers and central banks from the seven leading industrialised nations - the United States, Japan, Germany, France, Britain, Italy and Canada.
McCormick said that Washington sees more analysis needed of the turmoil before any actions are taken.
Financial markets around the world were shaken in August as investment firms began to write off the value of risk US real estate investments and lenders began to tighten credit.
The fear of credit drying up prompted the US Federal Reserve to cut rates by half a percentage point in August in an effort to get credit flowing and ease some of the stress in the US housing market.
"The issues raised by the recent turmoil are complex and require careful analysis," McCormick said. "We must undertake this work quickly but we cannot rush to judgment."
US Treasury Under Secretary David McCormick said the upheaval in markets over the past few months will be part of Friday's discussions along with trade, energy, the environment and reform of international financial institutions.
"Clearly the recent financial market turmoil will be a focal point and a good part of the G7 meeting will be devoted to this issue," said McCormick.
The G7 meeting in Washington will include finance ministers and central banks from the seven leading industrialised nations - the United States, Japan, Germany, France, Britain, Italy and Canada.
McCormick said that Washington sees more analysis needed of the turmoil before any actions are taken.
Financial markets around the world were shaken in August as investment firms began to write off the value of risk US real estate investments and lenders began to tighten credit.
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The fear of credit drying up prompted the US Federal Reserve to cut rates by half a percentage point in August in an effort to get credit flowing and ease some of the stress in the US housing market.
"The issues raised by the recent turmoil are complex and require careful analysis," McCormick said. "We must undertake this work quickly but we cannot rush to judgment."
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