U.S. Federal Reserve Chair Kevin Warsh has diagnosed that the global economy has entered an era of an "investment surge," moving away from the past era of a "global savings glut."

According to Reuters and other outlets on the 31st of last month local time, Chair Warsh said at the opening plenary session of the G20 Finance Ministers and Central Bank Governors meeting held in Asheville, North Carolina, that "if one were to define this very moment, it would be a period of a global investment surge."

Noting that "global savings glut" was a major topic of discussion at G20 meetings for years before and after the 2008 global financial crisis, Warsh emphasized that "the situation has reversed."

He diagnosed that while funds previously remained on the sidelines without leading to productive investments due to a lack of investment opportunities, the situation has now shifted into a phase where a worldwide expansion of investment drives economic growth.

In alignment with this change, Warsh evaluated that the concept of "secular stagnation," which was once another major topic of the global economy, no longer fits the current situation.

"Standing here today, marking 100 days in office, secular stagnation feels like a term describing the distant past," he said, adding that "the new era is closer to 'secular growth.'"

Emphasizing that the global economy is in such a "period of tremendous change," Warsh stressed that policymakers must utilize the knowledge and experience they have accumulated while also recognizing the need for change.

(Photo: AP, Yonhap News)