The US has made a “fundamental shift” towards fiscal discipline, the country’s Treasury secretary said in an effort to reassure international investors concerned about a possible debt crisis in the world’s largest economy.
Tim Geithner played down rising political tensions over fiscal policy, expressing confidence that Republicans and Democrats would reach a deal to repair the country’s long-term finances.
“When you have both the president of the United States and the Republican leadership in Congress both embracing the same basic target for deficit reduction ... you have made the fundamental shift that makes it very hard for future presidents, future congresses to decide that you can live with the risks of higher deficits in the future,” Mr Geithner said on Thursday.