Why Negative Rates could send the S&P 500 to 925
President Obama and British Prime Minister David Cameron.(Photo: Charles Dharapak, AP)
Though he opposed calls for a British withdrawal from the European Union, President Obama said Friday the United States respects the voters" decision for a "Brexit" and the referendum will have little effect on relations with either the United Kingdom or the EU.
"The special relationship between the United States and the United Kingdom is enduring, and the United Kingdoms membership in NATO remains a vital cornerstone of U.S. foreign, security, and economic policy," Obama said in a written statement.
As the American president and other world leaders reacted to the British vote to leave the EU, finance ministries across the globe monitored falling financial markets and tried to ease the worries of investors.
In his statement, Obama also expressed continuing support forthe European Union, saying it "has done so much to promote stability, stimulate economic growth, and foster the spread of democratic values and ideals across the continent and beyond."
Both the U.K. and EU remain "indispensable partners of the United States," Obama said, "even as they begin negotiating their ongoing relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world."
During an Aprilvisit to the United Kingdom, Obama spoke out against the Brexit referendumand warned that it could affect economic relations with the U.S.
In a newspaper column and during a news conference with British Prime Minister David Cameron, Obama said that the United States would be more interested in doing trade deals with a "big bloc" like the EU than a single nation like the United Kingdom.
The U.K. is going to be in the back of the queue" should Brexit come to pass, Obama said in April.
Cameron, who welcomed Obama"s opposition to leaving the EU, announced Friday he would resign in the wake of the referendum.
Brexit backers criticized Obama"s involvement in the British campaign.
Former London mayor Boris Johnson now a potential prime minister, post-Brexit said, "the Americans would never contemplate anything like the EU, for themselves or for their neighbors in their own hemisphere."
Vice President Biden, Treasury Secretary Jack Lewand a string of other government officials also lamented the Brexit votebut said they respected the voters" decision and pledged support for the British people in general.
"We will work closely with both London and Brussels and our international partners to ensure continued economic stability, security, and prosperity in Europe and beyond," Lew said.
The Group of Seven finance ministers issued a statement recognizing that "excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability," and they are workingto minimize the impact of Brexit.
"We will continue to consult closely on market movements and financial stability, and cooperate as appropriate," the ministers said.
Read or Share this story: http://usat.ly/28VB8HL
Source: http://www.usatoday.com/story/news/nation/2016/06/24/obama-we-respect-uks-decision-brexit/86329452/
