Bush to Call for World Economic Summit
Posted on October 8, 2008
The Fed helped coordinate an unprecedented rate cut this morning: U.S. rates were dropped by half a point. The markets rallied a bit, but closed down for the day. Meanwhile, President Bush is expected to convene an emergency summit of world leaders to discuss the economic crisis.
The Prime Minister, Nicolas Sarkozy, the French President and Silvio Berlusconi, the Italian Prime Minister, spoke with the United States President by telephone. Mr Bush urged his European counterparts to coordinate efforts to solve financial crisis spreading around the globe. All are expected to agree to attend a meeting if the details can be thrashed out.A summit is an excellent idea; it needs to happen as soon as possible. So much of our economy is based on consumer confidence. At this time it is crucial that world leaders make every effort to show true leadership. Having a summit sends a message of cooperation and world coordination that has never been seen before. The Fed is already coordinating with other major countries on interest rates and liquidity issues. This is a good next step to help get the world economy back on its feet.Downing Street said it was "a good idea" and welcomed the President's close attention to events in Europe. The idea was floated by Mr Sarkozy, who holds the presidency of the European Union. Dana Perino, the White House press secretary, said: "The president obviously talked to President Sarkozy about his idea to have a meeting. The president's open to that." The venue for the meeting would still have to be decided, although Washington is the likely destination.