Tim Geithner on Tuesday identified “encouraging signs” in the US economy and a better outlook internationally, adding there would be a reduced role for a key US programme to stimulate the market for toxic assets and loans.
Mr Geithner said: “The force of the global storm is receding a bit,” as conditions in securitisation and the market for asset-backed securities eased.
The Treasury secretary, who is to travel to Italy for a Group of Eight meeting this week, declined to criticise European efforts to fight the financial crisis but said they would be judged on their merits.
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