News / USA

US Treasury Secretary: Economy on the Mend

Multimedia

Audio
Michael Bowman

The U.S. economy is healing from a deep and prolonged recession, according to U.S. Treasury Secretary Timothy Geithner. Geithner struck an upbeat note on America's economic prospects, but also stressed the need to confront pressing risks to the nation's long term financial health.

Friday brought some hopeful news to the battered U.S. labor market. Although employers continue to cut jobs amid a fledgling economic recovery, the U.S. unemployment rate for January dipped below 10 percent to 9.7 percent. Treasury Secretary Timothy Geithner hailed the development on ABC's "This Week" program. "We are seeing some encouraging signs of healing. This is going to take a while, and it [the economic recovery] is going to be uneven. But there are encouraging signs in this [unemployment] report," he said.

Geithner noted that the drop in unemployment follows word that the U.S. economy expanded at an annual rate of 5.7 percent at the end of 2009. "We have an economy that was growing at almost six percent in the fourth quarter of last year -- the most rapid rate in six years. And we have the capacity as a government to reinforce that process, and help guide this economy back to the point where we are not just growing again, but we see growth translate into jobs," he said.

In its budget projections, the Obama administration is assuming that unemployment will remain stubbornly high -- above 9 percent -- well into next year. Fearing what some economists are already calling a 'jobless recovery', President Barack Obama is pressing Congress to enact financial incentives for small businesses to hire new workers.

Treasury Secretary Geithner says a jobs bill is vital, as is an overhaul of America's financial regulations to limit risk-taking by the nation's banks and major private financial institutions.

On that point, Geithner has the backing of his predecessor, former Treasury Secretary Henry Paulson, who spoke on NBC's "Meet the Press" program. "The economy is clearly recovering. Now, one of the factors that will help is more certainty with regard to actions out of Washington. For instance, certainty with regard to financial regulatory reform will help," he said.

Congress has debated financial reform ever since the financial meltdown of 2008, when major banks, investment houses, insurance giants and mortgage firms collapsed at a catastrophic rate, and credit for consumers and businesses all but evaporated. Many economists say, without far-reaching regulatory reform, the United States risks a repeat in the future.

Also appearing on "Meet the Press" was former U.S. Federal Reserve Chairman Alan Greenspan, who highlighted another long-term risk to America's economic health: its skyrocketing national debt. Greenspan said the debt will eventually constrain the U.S. economy and erode America's place on the world stage. "History tells us that great powers, when they have gotten into very significant fiscal problems, have ceased to be great powers," he said.

President Obama's budget projects federal deficits in excess of $1 trillion for this year and 2011. He has proposed a freeze on some domestic spending, and sought a bipartisan commission to craft a plan to tackle America's long-term fiscal imbalances.

You May Like

Video Video Claims to Show Shi'ite Forces in Iraq Executing Sunni Boy

While not yet independently confirmed, brutal killing already has gotten attention of Islamic State followers on social media More

After Six Years, Little Change for Niger Delta's Former Militants

Nigerians who laid down arms in exchange for government amnesty subsidies fear program may end with upcoming presidential elections More

Vietnam Pushes for More Educated Drivers to Curb Road Deaths

Transportation officials hope that making a greater effort to get drivers to learn the rules of the road will reduce fatal crashes More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA Spacecraft Approaches a Dwarf Planeti
X
George Putic
March 04, 2015 8:51 PM
NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video NASA Spacecraft Approaches a Dwarf Planet

NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video Young Muslims Radicalized Online

Young Muslims are being radicalized ‘in their bedrooms’ through direct contact with Islamic State or ISIL fighters via the Internet, according to terror experts. There are growing concerns that authorities and Internet providers are not doing enough to counter online extremism - which analysts say is spread by a prolific network of online supporters around the world. Henry Ridgwell reports from London.
Video

Video African Americans Recall 1960's Fight For Voting Rights

U.S. President Barack Obama and thousands of people will gather in the small southern U.S. city of Selma, Alabama, Saturday, March 7th to commemorate the 50th anniversary of a historic voting rights march that became known as “Bloody Sunday." VOA’s Chris Simkins traveled to Alabama and introduces us to some of the foot soldiers of the voting rights struggles of the 1960’s.
Video

Video Positive Messaging Transforms Ethiopia's Image

Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Cyber War Rages Between Iran, US

A newly published report indicates Iran and the United States have increased their cyber attacks on each other, even as their top diplomats are working toward an agreement to guarantee Iran does not develop a nuclear weapon and to free Iran from international sanctions. The development is part of a growing global trend. VOA’s Al Pessin reports from London.
Video

Video Answers Elude Families of MH370 Passengers

For the families on board Malaysia Airlines flight MH370, an airline official’s statement nearly one year ago that the plane had lost contact with air traffic control at 2:40 AM is the only thing that remains confirmed. William Ide reports.
Video

Video Land Disputes Arise Amid Uganda Oil Boom

Ugandan police say there has been a sharp increase in land disputes, with 10 new cases being reported each day. The claims come amid an oil boom as investors appear to be cashing in by selling parcels of land to multiple buyers. Meanwhile, the people who have been living on the land for decades are chased away, sometimes with a heavy hand. VOA's Serginho Roosblad reports.
Video

Video In Russia, Many Doubt Opposition Leader's Killer Will Be Found

The funeral has been held in Moscow for Boris Nemtsov, the opposition leader who was assassinated late Friday just meters from the Kremlin. Nemtsov joins a growing list of outspoken critics of Russia under the leadership of President Vladimir Putin who are believed to have been murdered for their work. VOA’s Daniel Schearf reports from Moscow.
Video

Video Simulated Astronauts Get Taste of Mars, in Hawaii

For generations, people have dreamed of traveling to Mars to explore Earth's closest planetary neighbor. VOA's Mike O'Sullivan reports that while space agencies like NASA are planning manned missions to the planet, some volunteers in Hawaii are learning how humans will cope with months in isolation on a Mars base.
Video

Video Destruction of Iraq Artifacts Shocks Archaeologists

The city of Mosul was once one of the most culturally rich and religiously diverse cities in Iraq. That tradition is under attack by members of the Islamic State who have made Mosul their capital city. The Mosul Museum is the latest target of the group’s campaign of terror and destruction, and is of grave concern to archaeologists around the world. VOA’s Kane Farabaugh reports.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More