Top market riggers to huddle privately Tuesday in Frankfurt

Section:

Treasury's Paulson to Meet ECB's Trichet

By Marc Jones
Reuters
Friday, June 27, 2008

http://www.reuters.com/article/politicsNews/idUSL2745384320080627

FRANKFURT, Germany -- U.S. Treasury Secretary Henry Paulson will meet European Central Bank President Jean-Claude Trichet next week during a trip to Europe to discuss global economic issues.

The U.S. Treasury said this week that Paulson would visit Moscow, Berlin, Frankfurt, and London during a June 29-July 3 trip.

An ECB spokeswoman confirmed that Paulson would visit the ECB's Frankfurt headquarters on Tuesday, two days before the ECB's next interest rate meeting.

The ECB is widely expected to raise rates for the first time in more than a year, taking benchmark euro-zone lending rates to 4.25 percent from 4.0 percent.

The Treasury said discussions in Europe would focus on the health of the global economy, among other issues. Currency issues may also come up at the meeting.

The euro hit a near three-week high against the dollar on Thursday and Paulson and other U.S. officials have repeatedly backed a strong dollar.

U.S. Federal Reserve Chairman Ben Bernanke issued a rare warning about the inflation risks of a weak currency, addressing a conference in Spain on June 3 by video link. But the gains in the currency were reversed when Trichet signaled two days later that the ECB could raise rates at its next policy meeting.

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