US Treasury Secretary says Economy Still "Tough", Recovery "Choppy" : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

US Treasury Secretary says Economy Still "Tough", Recovery "Choppy"

November 2, 2009

WASHINGTON, D.C. (RPRN) 11/02/09 — By Michael Bowman

The Obama administration says the U.S. economy is rebounding from a painful recession and a severe financial crisis, but the recovery will be slow and uneven. Treasury Secretary Timothy Geithner said America's soaring national debt must be curtailed, but that ensuring sustained economic expansion is of immediate importance.

After a year of shrinking output, the U.S. economy grew last quarter at a 3.5 percent annual rate.  Treasury Secretary Timothy Geithner hailed the news, but noted that steep economic hurdles remain. "Just five months after the president [Barack Obama] came into office, we got growth restarted.  But it is just the beginning.  We have a ways to go.  Unemployment is high and still rising.  This is a very tough economy, still, for huge numbers of American businesses," he said.

Geithner, who appeared on NBC's "Meet the Press" program, said it will take time before average Americans perceive economic improvements. "This is going to be a different recovery than [those seen] in the past, because Americans are going to have to save more.  A lot of damage was caused by this crisis.  It is going to take some time for us to grow out of this.  It could be a little choppy, it could be uneven, and it is going to take a while," he said.

Consumer spending accounts for more than two-thirds of U.S. economic activity.  But recent reports showed U.S. consumer confidence dipping and consumer spending down as government subsidies to purchase new cars have ended and tax credits for first-time home buyers are soon to expire.

That has led to charges by Republicans the economic recovery is an illusion, funded by inefficient government spending that has weakened America's long-term economic position by vastly expanding the national debt.  House Minority Leader John Boehner said "The [federal] stimulus bill is not working.  Unemployment is rising.  The debt to be paid by our kids and grandkids is exploding.  Enough is enough."

But Treasury Secretary Geithner insists the $787-billion stimulus package President Barack Obama signed into law in February has worked to stop the plunge of an economy that was in freefall when Mr. Obama came into office.  And, despite continuing bank failures, Geithner says America's financial system has also been rescued and a catastrophic credit squeeze has eased.

The treasury secretary did not dispute Republican contentions that mounting federal deficits are creating an unsustainable level of national debt. "It is going to have to come down. It is too high, and I think everybody understands this.  We have two central imperatives: restore growth and create jobs, but make sure people understand we are going to have to bring those fiscal deficits down as growth recovers.  First growth, though. Without growth you cannot fix those long-term fiscal problems," he said.

Geithner said he is encouraged by legislative progress on bills to reform America's health-care system and reduce health care costs, which he said will improve the nation's fiscal outlook.

About the author:

Voice of America. The Voice of America, which first went on the air in 1942, is a multimedia international broadcasting service funded by the U.S. Government through the Broadcasting Board of Governors.

Click here to see all news from this author/company

Filed Under: Article-byline, BANKING AND FINANCIAL NEWS, BREAKING NEWS, Economy

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

IT Secure Services Expands Business Operations Into Massachusetts

Manchester, NH 04/23/15 · Businesses In The 128 Tech Corridor Finally Have...

ASTEP Announces Cindy Gentry, Senior Partner at Mercer U.S., as New Advisory Board Member

NEW YORK, NY 04/21/15 · The Asperger Syndrome Training and Employment Partnership (ASTEP)...

500 BC Introduces YouQuest App. Update Your Life, Not Your Status.

Washington, DC 04/21/15 · Harnessing ancient wisdom to meet modern challenges. “Update...

Talkingtech.ca Launches Canadian Technology Forums

Toronto, Ontario 04/18/15 · Canadians with a love of everything hi-tech have...

Global Access CSG Announces New Chief Operating Officer

NEW YORK, NY and MINNEAPOLIS, MN 04/15/15 · Global Access CSG is pleased to announce the...

Newborn Foundation Featured at Shanghai Neonatal Forum

Saint Paul, MN / Shanghai, China 04/15/15 · Forum follows implementation visits to SW China newborn...

Minority-Owned Handbag Brand Continues to Emerge

Charlotte, NC 04/13/15 · He is commonly called “Mr. Sylvia”, but Sylvia...

By April 21, create a responsive site or be left out of Google top ranks

San Francisco, California 04/13/15 · By Anne Howard for TrafficStriker. Have you checked your...

Pressenger Mobile App Urges Users To Support Earth Day 2015 Thunderclap Campaign

Budapest, Hungary 04/11/15 · Participants use pre-call image to spread awareness about...

Diecasters shown how to save up to 85% off whole life running costs

Stuttgart, Germany 04/09/15 · Diecasters will be told how to save up...

Criminals Host Fake Government Services Web Sites

Reston, VA 04/08/15 · Criminals Host Fake Government Services Web Sites to...

Running Aces Introduces Renovated Simulcast Space in Preparation for Racing Season and Kentucky Derby

COLUMBUS, MN 04/08/15 ·   Running Aces Introduces Renovated Simulcast Space in Preparation...

Filipino Freedom Fighter to U.S. Army Officer - Bataan Death March Survivor

LOS ANGELES, CA 04/07/15 · By Farrell J. Chiles “My father told me us...