World Economy Anxious about Falling Dollar

Trichet declined to answer questions about interest policy changes in the next few days and only said that long and short-term interest rates were very low in Europe. John Taylor, deputy US Treasury Minister, remarked that the decrease of the US’s current deficit requires both national and economic precautions and said that they had prepared a plan to promote consumer savings to decrease the deficit. US Trade Representative Robert Zoellick expressed that the US had prepared a plan to decrease the current deficit by reducing consumer expenditure. Saying that decrease of the US’s budget deficit depends on other countries, especially India and China, Zoellick added, "It is very vital to associate these two improving economic power with the system."

The European Union’s complaints to the US that the dollar’s losing value has decreased the competitive power of European export goods have been passed on by the US to China.