Bank of Israel’s Fischer Says U.S. Must Convince Bondholders

The U.S. needs to convince creditors it can lower its budget deficit, while global authorities may be postponing steps to strengthen the financial system against future crises, Bank of Israel Governor Stanley Fischer said.

“We, the rest of the world, people who hold the debt of the U.S., have to have a well-founded belief that the U.S. is going to deal, as it has always dealt, with its financial problems in a responsible way,” Fischer told Bloomberg Television in Paris today. “There has to be progress in that direction, progress in convincing people that will happen.”