Central bankers from the world's most important economies have welcomed a promise by the US to tackle its budget deficit.
Failure to correct the huge US trade and government budget deficits pose a risk to a world economy that is expected to grow at about 4 per cent or better this year, Group of 10 chairman Mr Jean-Claude Trichet said at a news conference.
"We were certainly aware of the declaration of [US Treasury] Secretary [John] Snow as regards the will of the US government to take into account the necessity of reducing the fiscal deficit," he said.
"It was said very, very clearly by Secretary Snow, and I take it that it is certainly very important . . . and has been considered very important by all observers," he said.
The Bush administration in early February unveils its budget plan and Mr Snow on Friday gave the first hint of budget discipline, saying he wants to "do things" and work with Congress to bring the US budget deficit down.