US against rush to curb deficits

G20 nations should beware of putting measures in place to curb deficits so quickly that they risk pushing the global economy back into recession, top US economic leaders warned.

G20 nations should beware of putting measures in place to curb deficits so quickly that they risk pushing the global economy back into recession, top US economic leaders warned. “We must demonstrate a commitment to reducing long-term deficits, but not at the price of short-term growth,” US Treasury Secretary Timothy Geithner and top US Economic Adviser Lawrence Summers wrote in a Wall Street Journal article.

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Meanwhile, Germany, France and Britain announced plans to introduce a bank levy to help meet the costs of the financial crisis, without waiting for the summit, underscoring a rift with key partners.