WASHINGTON—The U.S. economy, while not poised to grow as rapidly as emerging nations and saddled with a $1.4 trillion a year deficit, has the fundamentals in place and “the resiliency and strength” to reclaim its position as the leading economy of the world, Treasury Secretary Timothy Geithner told attendees at the Investment Company Institute’s General Membership Meeting here Wednesday.
“The U.S. makes up one-fifth of global GDP and is only 5% of the world’s population,” Geithner said. “It is very important that the U.S. is restored as the leading economy in the world. I am very confident that we can again become the world’s leader and participate in global growth that will be driven by China and India. But we cannot do that without checks and balances on risk. We cannot do that without regaining the world’s trust. We cannot do that without setting spending caps to and a tax reform plan to meet President Obama’s goal to reduce the deficit by $4 trillion over the next 12 years.”