Recent capital market challenges have prompted calls for immediate regulatory action. Before recommending lasting policy changes, US economic decision-makers are committed to working multilaterally to put these events in perspective, examine the root causes and respond in a thoughtful and timely fashion.

Despite understandable anxiety over current market turmoil, recent events are unfolding against the backdrop of very robust economic fundamentals. The global economy continues to grow at about 5 per cent annually; overall worldwide growth in recent years has been the strongest in three decades, with emerging markets as a key driver. US economic fundamentals remain strong: unemployment is low, wages are rising, core inflation is contained and our financial system remains well-capitalised.