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IPFS News Link • Economy - Economics USA

Geithner says lending cuts could hurt U.S. influence


(Reuters) - U.S. Treasury Secretary Timothy Geithner urged lawmakers on Wednesday to approve capital increases for global lending institutions and warned that failure to do so could harm U.S. influence abroad.

"We live in a dangerous world, the world isn't standing still," he told a House of Representatives Appropriations subcommittee where he sought backing for a $1.24 billion budget increase to $3.36 billion for international programs that Treasury oversees.

"Other countries like China are ready to fill any vacuum left by a receding America and we have to take a very careful look when we're going to cut back things like this to make sure we're not undermining our core interests," Geithner said.