Treasury Secretary Geithner tells a Washington luncheon that the US economy has clearly stabilized but that the recovery will be bumpy and it will feel fragile for a while. It is essential to reduce deficits to a sustainable level or higher interest rates could interrupt the recovery, he says.
Also crossing the wires is news that the BOJ will consider accepting foreign bonds as collateral for money market operations. This is potentially dollar bullish as it will not require Japanese banks to liquidate USD-denominated holdings to use them for collateral at the BOJ.
