Geithner: `Too early to shift toward policy restraint’

U.S. Treasury Secretary Timothy Geithner said on Saturday it was too early shift policy restrictions despite the early signs of economic improvement.

He said recovery has not yet arrived, and governments need to keep reinforcing recent improvements in global demand.

“These early signs of improvement are encouraging, but the global economy is still operating well below potential, and we still face acute challenges,” said Geithner in Lecce at the G8 ministers meeting.

Geithner said the government was committed to bring down the fiscal deficits quickly starting from 2011 especially reducing the rate of growth in health care costs that are adding to deficits.