HONOLULU, HI (AFX) - Treasury Secretary Paul O'Neill said though the U.S. economy has slowed, he has "full confidence in its resilience," repeating that its fundamentals "remain strong." "While the U.S. economy has slowed, I have full confidence in its resilience," O'Neill said in opening remarks to the Asia Development Bank annual meeting here.
Productivity growth, labor and capital market flexibility, and low inflation continue to indicate that "economic fundamentals... remain strong," he said.
O'Neill noted that macroeconomic policy actions have been taken to support a return to higher growth rates, including Federal Reserve monetary easing.
The Fed "has demonstrated resolutely its willingness to ease monetary conditions as needed," he said.
Expected tax cuts later this year will also "provide some stimulus," as well as stimulate increased economic efficiency, he added.
Noting that all major economies need to perform at their full potential in order to counter the global economic slowdown, O'Neill repeated his endorsement of Japanese Prime Minister Junichiro Koizumi's statements "indicating his commitment to reform."
O'Neill said he is now looking forward "to seeing Japan take the steps needed to trigger an enduring recovery."
"It is important for Japan, after ten years of sluggish growth, to achieve strong, stable growth," he said.