The various finance ministries are giving background briefings in the run-up to the G7 meeting this weekend. A US Treasury official is on the wires saying the world can’t rely on the US consumer to fuel a recovery. The world is not out of crisis yet and there is still much work to be done. Each major economy must make policy adjustments to sustain recovery, the official said.
This is becoming a familiar refrain from US officials as the consumer is expected to have less access to credit coming out of the recession than going in and also having less appitite to use credit as well. Most expect any US recovery to be tepid as a result.
