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

GeneSegues Therapeutics Awarded Contract For Development of Nanocapsule-based Vaccine for Biodefense Pathogen

MINNEAPOLIS, MN 12/18/14 · Company Collaborating With U.S. Army Researchers on Topically...

Enjoy a Virtual Tour of Canada's Favourite Spa

GRAFTON, ON 12/16/14 · A brand new tour of Ste. Anne's Spa...

Bahama Beach Club Hosts Christmas and 12th New Year’s Eve Party

Treasure cay 12/13/14 · If you're looking for the perfect place to...

Opportunistic Brand Savvy Investors set to snap up Stackcap Patent

London, UK 12/11/14 · Business savvy investors welcomed an exciting opportunity this...

Newborn Foundation Applauds Reauthorization of Newborn Screening Saves Lives Act

WASHINGTON, D.C. 12/11/14 · The U.S. House of Representatives has passed H.R....

SecurifyApp makes it safe to be Home Alone during this holiday season

New York, New Yrok 12/10/14 · More Americans fall victim to accident, theft and...

Routehappy Raises $3.3M in Funding to Expand Airline & Distributor Products

NEW YORK 12/10/14 ·  -- Routehappy, the product differentiation platform for air travel,...

Spa Lovers Select Ste. Anne's as Canada's Top Destination... Again!

GRAFTON, ON 12/04/14 · Spafinder Wellness once again has awarded Ste. Anne's...

Who Couldn`t Use a Hug? Announcing the HugTrain 6th Annual Hug Tour Dec 2014

Montreal, Quebec, Canada 12/03/14 · Cross Continental Canadian-U.S. Train Journey to Raise Spirits...

Zikto announces stretch goals for successful Kickstarter campaign

Los Angeles/Seoul, Korea 12/01/14 · Campaign reaches global audience! Riding high on the accomplishment...

Coffee With Dr. Stewart

Austin, TX 11/25/14 · A brother and sister bring an exciting new...

Arki Kickstarter reaches $100K target in 13 days

Los Angeles/Seoul, Korea 11/24/14 · One step closer to a walking revolution The kickstarter...

Zikto taking award-winning Arki to Startup Nations Summit

Seoul, Korea 11/22/14 · Zikto taking award-winning Arki to Startup Nations Summit The...

The End of Transparency? Don't be a fraud target

Carrollton, TX 11/18/14 · - Over the years, progressive and productive societies...