Geithner: Fed Will Not Contribute to IMF-Led Bailout
The U.S. Federal Reserve has no plans to give money to the International Monetary Fund to bolster the European bailout fund, despite reports suggesting the contrary, says U.S. Treasury Secretary Timothy Geithner.
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Speaking after a meeting on Tuesday with his German counterpart, Finance Minister Wolfgang Schaeuble, Geithner said that he is “very encouraged” by the reforms taken so far by European nations, but that reports citing anonymous sources saying the Fed would take part in a special fund for countries trying to control their debt is “not accurate.”
Geithner is on a three-day trip to Germany, France, and Italy, “to emphasize how important it is for the United States and the global economy as a whole” for Europe to succeed, he said.
The U.S. continues to support a constructive role by the International Monetary Fund in efforts to build a stronger Europe, said Geithner, though it has no intention at this time to contribute monetarily to those efforts.
Schaeuble and Geithner met ahead of a key summit of European Union leaders on December 9 aimed at finding ways to contain the debt crisis. Earlier Tuesday, Geithner met with European Central Bank President Mario Draghi and Bundesbank President Jens Weidmann.
On Wednesday and Thursday, Geithner will meet with French President Nicolas Sarkozy, Spanish prime Minister-elect Mariano Rajoy, and Italian Prime Minister Mario Monti.