Economy, Regulation

U.S. Treasury Secretary Lew: Recovery to continue if Congress acts quickly

Jack Lew

Jack Lew

U.S. Treasury Secretary Jack Lew said if Congress acts quickly to end the government shutdown and raise the debt limit, the economic recovery will return to its strengthening recovery.

“Private employers have added 7 and a half million jobs since February 2010, and businesses added more than 2 million jobs over the last year,” Lew said. “Manufacturing is expanding while the housing market continues to improve, posting gains in sales, prices, and residential construction. Substantial progress has been made in addressing the imbalances that triggered the financial crisis.”

Lew also pointed to the Obama administration’s progress in cutting the deficit by half from nine percent in 2009.

“It would be better policy to replace sequestration with a more balanced approach that strengthens our economy and supports greater job creation for middle class America,” Lew said.

Additionally, Lew said more progress is necessary towards developing a full banking union in Europe that includes a supervisory mechanism and resolution authority, deposit insurance, recapitalization capacity and a degree of risk. He also said Japan needs to boost domestic demand and implement structural reform, while China needs to demonstrate more sustainable-led growth.

He also stressed the nation’s commitment to implementing Basel III rules and regulating OTC derivatives markets, as well as introducing cross border proposals to enhance transparency and oversight of OTC markets.

“The United States has strongly supported efforts to strengthen the international financial architecture over the last four years – particularly in giving the IMF a stronger financial base, and a governance structure that better reflects the global economy,” Lew said. “We are actively working with Congress to secure legislation implementing the 2010 IMF quota reforms.  IMF quotas are the fundamental building block of the Fund, and it is important that quotas reflect countries’ weight in the global economy.”

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