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Beyond the budget, Lew is expected to hew closely to the positions Geithner struck on such issues as Europe's debt crisis, the U.S. relationship with China and the administration's defense of the Dodd-Frank financial overhaul law that the banking industry has fought to weaken. One potential weakness for Lew: His relative inexperience with financial markets and international economic crises
-- areas that had played to Geithner's background. Analysts think Lew will keep pressuring Europe to deal aggressively with its budget and debt issues. But they think this will consume less of his time given that Europe's debt crisis now poses less of a threat to the global economy. On trade, Lew is expected to keep prodding China. The U.S. trade gap with the world's second-largest economy hit another record high last year. No breakthrough is expected, though. Lew will also need to calm investors who have grown concerned about possible currency wars after Japan's new government sought to lower the value of the yen as a way to boost exports and its weak economy. A weaker yen makes Japanese goods cheaper overseas and foreign goods costlier in Japan. And Lew will need to defend the Dodd-Frank Act, which overhauled financial regulation after the 2008 crisis. Since the law was passed in 2010, Wall Street has fought to weaken many of its stricter regulations.
[Associated
Press;
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