US will work with partners to avert future crisis: Paulson
US Treasury Secretary Henry Paulson warned that the struggling US economy may face rougher times ahead but insisted its fundamental prospects are in good shape.
By PTI |
WASHINGTON: US Treasury Secretary Henry Paulson warned that the struggling US economy may face rougher times ahead but insisted its fundamental prospects are in good shape.
The Treasury chief also said Washington would work with its global partners to take steps aimed at averting future financial crises.
"The financial market turmoil and its impact on global growth underscore the need for all countries to remain open to trade and investment," Paulson said after a meeting here of finance ministers and officials from the Group of Seven major industrialized countries yesterday.
"We have worked, and will continue to work, closely to address global challenges and take concrete actions," Paulson said.
G7 officials endorsed a plan earlier Friday aimed at preventing a repetition of the recent financial market turmoil which has caused tens of billions of dollars of losses for major banks and securities firms.
"There may be more bumps in the road" for the US economy, Paulson cautioned.
The current slowdown in the world's biggest economy has been called a recession by the International Monetary Fund, an assessment dismissed by President George W Bush's administration as "unduly pessimistic."
But it is clear that a persistent US housing slump and a related credit crunch have slowed US economic growth dramatically in recent months.
"I am confident in the long-term economic prospects of the United States," Paulson said. "However, the housing correction, together with high energy prices and financial market turmoil are weighing on US economic growth."
The Treasury chief also said Washington would work with its global partners to take steps aimed at averting future financial crises.
"The financial market turmoil and its impact on global growth underscore the need for all countries to remain open to trade and investment," Paulson said after a meeting here of finance ministers and officials from the Group of Seven major industrialized countries yesterday.
"We have worked, and will continue to work, closely to address global challenges and take concrete actions," Paulson said.
G7 officials endorsed a plan earlier Friday aimed at preventing a repetition of the recent financial market turmoil which has caused tens of billions of dollars of losses for major banks and securities firms.
"There may be more bumps in the road" for the US economy, Paulson cautioned.
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The current slowdown in the world's biggest economy has been called a recession by the International Monetary Fund, an assessment dismissed by President George W Bush's administration as "unduly pessimistic."
But it is clear that a persistent US housing slump and a related credit crunch have slowed US economic growth dramatically in recent months.
"I am confident in the long-term economic prospects of the United States," Paulson said. "However, the housing correction, together with high energy prices and financial market turmoil are weighing on US economic growth."
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