Fed's Warsh tells G20 that past global savings glut is turning into investment surge

[ASHEVILLE, North Carolina] US Federal Reserve chairman Kevin Warsh on Monday (Aug 31) told G20 finance leaders that the world is seeing a global investment surge that is helping to power growth, reversing past savings gluts that kept capital idle due to a shortage of investment opportunities.

Warsh, attending his first international economic policy meeting since taking office in May, told the G20 opening plenary session that he was looking forward to learning more about growth prospects among member economies.

Warsh said that during past G20 meetings, even before the 2008 global financial crisis, and in years since, participants would have been discussing “a global savings glut,” but the situation has reversed.

“If I were to try to characterise this moment, it would be one of a global investment surge,” he said, adding that the notion of secular stagnation no longer applied. REUTERS