New York: Treasury Secretary Timothy F. Geithner said the US is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.
"Absolutely not," Geithner said, when asked in an ABC News interview broadcast whether a downgrade is a concern. "That will never happen to this country."
Geithner said investors around the world turn to US Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects "basic confidence" in the US and its ability to bounce back from the global recession, he said.
Moody's Investors Service last week said the US government's bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade.
The US plans to rein in the deficit once the labour market recovers, Geithner said. In the short run, that means focusing on ways to "make sure that this economy is growing again", he said. The administration says the deficit will shrink over the next four years as more Americans find jobs and the economy accelerates. "This is within our capacity to do," Geithner said.
