Fed Chair Kevin Warsh Says the World Is Shifting from a Global Savings Glut to a Surge in Investment

[Financial News] Kevin Warsh, chair of the Federal Reserve System (FRS), said the era of a global savings glut has given way to a sharp rise in investment, which is now driving global economic growth.
According to British media, Warsh said at the opening plenary session of the Group of Twenty (G20) finance ministers and central bank governors meeting on the 31st (local time) that, at past G20 meetings from before the 2008 Global Financial Crisis (GFC) through the years that followed, participants often discussed a "global savings glut," but the situation has now reversed.
Warsh said, "If we were to define the current environment, it could be described as an era of 'global investment surge,'" adding that the concept of "secular stagnation," which holds that economic growth slows significantly for a long period because of a lack of innovation, no longer applies to the current economy.
He also said, "The United States and other G20 countries are examining whether they can grow faster than forecasts from traditional outlook institutions such as the Congressional Budget Office," and added, "The key question we need to ask is how much underlying growth potential there is, especially what is happening to productivity."
[email protected] Hong Chaewan Reporter