Prime Minister Yukio Hatoyama's new economic policies focused on boosting domestic demand are "very encouraging" as they are perfectly in line with major countries' ongoing efforts to aim for more balanced and sustainable growth, visiting U.S. Treasury Secretary Timothy Geithner said Wednesday.
"I think the broad direction that the prime minister's laid out is very encouraging," Geithner said in a group interview with reporters at the U.S. Embassy in Tokyo, adding there are "early signs of a stronger domestic demand-led economy."
Japan and the United States, along with other Group of 20 major economies, have agreed that countries with huge trade surpluses need to be less reliant on U.S. consumption and those spending too much need to save more for their future growth to avoid another economic crisis.