–Must Preserve Confidence In Capacity Of Pol System To Boost Economy
–To Take ‘Several Years’ For Weak Sectors Of US Economy To Recover

By Brai Odion-Esene

WASHINGTON (MNI) – The United States has not wavered from the
belief that a strong dollar remains in its best interest, and it is up
to lawmakers to demonstrate an ability to work together and make the
economy stronger, U.S. Treasury Secretary Timothy Geithner said Tuesday.

Speaking to financial executives at the Wall Street Journal’s CFO
Network Meeting, Geithner said his view on the value of the dollar
remains the same and that he hopes that opinion will never change.

“A strong dollar will always be in the interests of the United
States,” he declared.

And to maintain confidence in the United States, he continued, what
ultimately matters is for policymakers to remain focused on
strengthening the basic fundamentals of the American economy.

“And that means,” Geithner said, “not just repairing the damage
caused by this crisis, it means not just trying to make sure we get our
long-term fiscal house in order, but that we continue to focus on doing
things that make the underlying fundamentals of our economy stronger.”

If authorities get that process right, then the U.S. will continue
to preserve what he described as “a very substantial amount of
confidence in this as a place to invest long term.”

While there is currently a lot of confidence in the capacity of the
U.S. political system to ultimately act on those fronts, Geithner warned
against counting on the confidence indefinitely.

Politicians is Washington must demonstrate that they can come
together and solve some the country’s long-term problems, he said.

Asked to comment on the likelihood of a municipality default,
Geithner said states in the U.S. are still under a lot of pressure, but
some of that is now diminishing.

“Revenue is starting to come back as growth recovers,” he said.
“That means their pressure is going to be more manageable.”

It will still take a long time for states to work through their
fiscal issues, Geithner cautioned.

As for the broader U.S. economy, Geithner noted that while the
overall growth rate is slowing down as the effects of the government’s
fiscal stimulus programs recede, the private sector is starting to step
up again.

Future growth in the U.S. will have to be more export and
investment-driven, Geithner said, which is exactly what is being
witnessed so far in the recovery.

However, “this is still a very hard economy, a very difficult
economy,” he said.

Geithner warned parts of the U.S. economy most affected by the 2008
financial crisis — such as construction, housing — are still weak.

“It’s going to take several more years to dig out of that problem,”
he said.

** Market News International Washington Bureau: 202-371-2121 **

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