TribLIVE

| USWorld


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Treasury chief tells Europe leaders to push pro-growth policies

Daily Photo Galleries

By The Associated Press
Wednesday, April 17, 2013, 8:21 p.m.
 

WASHINGTON — Treasury Secretary Jacob Lew called on European leaders to pursue pro-growth policies in the short term rather than trim their budget deficits, noting that the U.S. economy is “inextricably tied” to the health of its global partners.

Lew's comments were delivered on Wednesday in a speech at Johns Hopkins University School of Advanced International Studies previewing this week's global finance meetings in Washington.

Earlier this week, the International Monetary Fund lowered its outlook for the world economy this year, predicting that government spending cuts will slow U.S. growth and keep the euro currency alliance in recession.

Lew said European leaders need to emphasize growth over austerity at a time when unemployment is approaching record highs in several countries. He also said that the Obama administration would keep working to persuade Congress to mitigate the adverse effects of the $85 billion in federal spending cuts that began on March 1.

“The current debate in Europe on its economic future is critical,” Lew said. “They must decide how to better support demand ... how to better balance the pace of fiscal consolidation with the need for growth.”

Lew also addressed currency policies that can be used for gaining trade advantages. The comments underscored U.S. concerns about China and Japan devaluing their currency to make their products cheaper overseas and U.S. and other foreign goods more expensive in their markets.

The Treasury Department last week said China needed to boost the value of its currency, the renminbi, against the dollar. The semi-annual currency report also warned Japan, saying such policies should be used to boost Japan's domestic economy and not to lower the value of the yen for trade advantages.

Such currency policies will be among the key discussion topics at this week's meetings in Washington. The meetings of the Group of 20 major economies begin on Thursday, while the spring meetings of the International Monetary Fund and the World Bank commence on Friday.

 

 
 


Show commenting policy

Most-Read Nation

  1. Fight against Islamic State at impasse, military commanders say
  2. Federal officials: Dallas nurse free of Ebola
  3. Doctor 1st Ebola virus case in New York City
  4. Open encrypted messages by updating technology access law, FBI Director Comey says
  5. Feds fault security of tax info gathered for health care law benefits
  6. Huge gold nugget goes on sale for $400K
  7. West Virginia University expels 3 students for postgame misconduct
  8. 3 killed in Md. mid-air collision
  9. Man shot from behind, Wecht’s autopsy finds
  10. Court: IRS not targeting conservative tax-exempt groups
  11. Driver accused of pretending to be Ohio cop
Subscribe today! Click here for our subscription offers.