'We'll need US$1 trillion in savings if tax cuts for rich were extended,' US Geithner says

US Treasury Secretary Timothy Geithner gave grasping remarks today at a meeting of the Financial Stability Oversight Council celebrated in Washington DC, including that “a balance mix of reforms are needed for dig out of fiscal hole.”

Likewise, the US official said “the US government is slowing the economy after Europe’s trauma and the effects of oil. US politics is stuck and in the hands of Congress.”

Furthermore, Geithner recommended that a “growth programme should be tied to long-term reforms to restore fiscal sustainability”, and added, “Economy needs a very substantial programme of support for economic growth.”

Also, Geithner remarked that “the fiscal cliff uncertainty is a significant risk.”

“The best enforcement response to libor needed to restore trust, confidence in financial system.”

“US regulators were forceful from beginning; more enforcement to come on libor. It has not been fixed. The US has now taken the initiative to push more reforms, and set in motion very, very powerful enforcement response to concerns on libor.”