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Japan's Finance Minister Fukushiro Nukaga said he wants the U.S. to make its “utmost effort'' to prevent financial turmoil in the world's biggest economy from worsening.

“We want the country to keep implementing bold and speedy measures,'' Nukaga told reporters today following a meeting of Group of Seven finance ministers and central bank governors in Washington.

Finance chiefs from the Group of Seven nations said in a joint statement today the global economic slowdown may worsen amid an “entrenched'' credit squeeze and signaled concern about the dollar's slide over the past two months.

Finance ministers and central bankers meeting in Washington downgraded their outlook for the world economy from that of just two months ago, blaming the U.S. housing recession, credit-market turmoil, high commodity prices and inflation pressures instant payday loan.

The G-7 pledged to implement further monetary and fiscal policies “as appropriate'' without giving details.

Policy makers met after the International Monetary Fund this week estimated a 25 percent chance of a global recession this year. A collapse in the market for U.S. subprime mortgages has pushed the U.S. economy toward its first contraction in seven years and prompted banks to shun lending after $245 billion of asset writedowns and credit losses since the start of 2007.

The G-7 officials also said they are “concerned'' about sharp “fluctuations'' in major currencies and their possible implications for economic growth and financial markets.

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