Bush Says Fundamentals Of US Economy Are Strong
13:23 EDT Tuesday, August 21, 2007
OTTAWA (Dow Jones)--U.S. President George W. Bush said Tuesday the fundamentals of the U.S. economy are strong and there is enough liquidity in the system as markets re-price risk.
"The fundamentals of the U.S. economy are strong," Bush said at a televised news conference at the end of a two-day trilateral meeting with leaders of Canada and Mexico in Montebello, Que. "Inflation's down, interest rates are low, the employment picture is strong, exports are up over 3% in the second quarter."
"(The) fundamental question, is there enough liquidity in our system as people readjust risk? And the answer is, yes there is," he added.
Canadian Prime Minister Stephen Harper reiterated that Canada's banks, corporations and its household sector are strong.
He said financial and monetary authorities are monitoring markets closely. He said it's not unusual for asset prices to go up and down.
"I can assure you that (the) Canadian financial sector, in particular our banks, Canadian companies in general, the household sector, our capital positions are very strong," Harper said.
Mexican President Felipe Calderon said his country's financial and banking system are strong enough to withstand the market turmoil. He said it hasn't been necessary for the Mexican central bank to add more liquidity to the financial system.
Whether the turmoil could have an impact on the real economy depends on the effect on U.S. growth, Calderon said.
-Nirmala Menon, Dow Jones Newswires; 613-237-0668; nirmala.menon@dowjones.com
(END) Dow Jones Newswires
08-21-07 1238ET
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