The Obama administration criticised Europe and Japan for its reliance on monetary policy to spur the economy. The administration added that it worried that a failure to implement other policy tools could further undermine a global economic outlook.

"The global economy should not again rely on the U.S. to be the only engine of demand," the administration said.

"Not only has global growth failed to accelerate, but there is worry that the composition of global output is increasingly unbalanced," the administration added.

The U.S. Treasury Department also criticised China and South Korea for its currency policies that hurt other trading partners including the U.S. China's currency remains "significantly undervalued," the Treasury Department said.