Geithner: U.S. committed to keeping dollar strong

NEW YORK, NY - APRIL 26: US Treasury Secretary Timothy Geithner speaks at the Council on Foreign Relations on April 26, 2011 in New York City. Secretary Geithner said he was pushing for a deficit target of 2.5% by 2015 and that he was backing a policy of a strong dollar despite recent losses. (Photo by Spencer Platt/Getty Images)



Published April 26, 2011
EFE

New York – Treasury Secretary Timothy Geithner said here Tuesday that the United States aims to keep the dollar strong and will not seek to drive down the value of its currency in pursuit of higher exports.

"Our policy has been and will always be, as long as at least I'm in this job, that a strong dollar is in our interest as a country," he said at the Council on Foreign Relations.

"We will never embrace a strategy of trying to weaken our currency to try to gain economic advantage," Geithner vowed, responding to a question about the dollar's recent slide.

The dollar has fallen significantly this year against other major currencies and was trading Tuesday at $1.46 to the euro, the greenback's lowest level in 16 months.

Geithner's reaffirmation of a "strong dollar" policy is seen as an effort to assure analysts and investors that President Barack Obama's administration is confident the U.S. economic recovery is on track.

Regarding the surge in oil prices, the treasury secretary said the spike will not hurt the U.S. economy.

"What's happening in oil is obviously potentially very significant. At current levels, on its own, it won't put the recovery at risk," he said.

Geithner also addressed the U.S. budget deficit, calling for a "credible strategy" to gradually reduce the shortfall without making hasty moves that could put the economic recovery in jeopardy.

"You have to commit to bring the budget deficit down to a level that will put our overall debt burden on a declining path as a share of the economy," the secretary said.

Obama outlined earlier this month a plan to slash the U.S. budget deficit by $4 trillion over the next 12 years.

The president's initiative calls for 75 percent of the deficit reductions to come from spending less, while the rest of the projected savings depend on repealing the Bush tax cuts for the wealthy.

Source


Note: Bolds and italics added.
.