In his view, the economy, which is still expanding, could absorb that kind of fiscal action and benefit.

"Inevitably, these fiscal actions will have a negative effect on the delivery of city services," he said.

Inflationary expectations have been rising, and so has worry about the lack of adequate fiscal or monetary action to head it off.

But the possibility of fiscal action always stands in reserve.

The United Kingdom has been one of the major economies leading calls for fiscal action to stimulate aggregate demand.

As a result, further discretionary fiscal action is unlikely.

Each country indicated the fiscal and monetary actions it intended to take to achieve those results.

The combination of a deadlock with Congress and huge budget deficits has blocked meaningful fiscal action.

"With the surplus, we could have some timely fiscal action when the economy goes inevitably into recession," he said.

Europeans want to know whether rhetoric will be backed by fiscal and monetary actions to prevent a further decline in the dollar.