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19 May 2015
World relying too much on US economy – US treasury secretary Jack Lew
FXStreet (Mumbai) - The US Treasury Secretary Jack Lew, in his speech at Bretton Woods on Tuesday said that the US economy continues to be a bright spot in the world, although he warned that other countries are relying too much on the economic growth in the US.
On FX
Lew said that it is necessary to distinguish policies aimed at improving growth from interventionist FX policies and that countries would not want monetary policy subjected to FX rules. He further added that FX measures in trade deals would be a poison pill.
On Europe
The Treasury secretary is of the view that the European economy is improving and the rebound in economic growth in Europe shall have a self correcting effect on FX, indirectly stating that he is unconcerned regarding sharp appreciation in the USD especially against the EUR.
On FX
Lew said that it is necessary to distinguish policies aimed at improving growth from interventionist FX policies and that countries would not want monetary policy subjected to FX rules. He further added that FX measures in trade deals would be a poison pill.
On Europe
The Treasury secretary is of the view that the European economy is improving and the rebound in economic growth in Europe shall have a self correcting effect on FX, indirectly stating that he is unconcerned regarding sharp appreciation in the USD especially against the EUR.