News / USA

US Treasury Secretary Sees Continued Economic Growth

The Obama administration says the U.S. economy continues to recover from a deep recession and is less vulnerable to any future financial crisis.

Nearly a full year of economic expansion has yet to bring about significant reductions in America's stubbornly-high unemployment rate or the record-high federal deficit. Nevertheless, Treasury Secretary Timothy Geithner says the U.S. economy is on the right track after the worst recession of the post-World War II era.

"You are seeing a recovery," he said. "You are seeing private investment expand again and job growth starting to come back. That is very encouraging."

Geithner was speaking on NBC's Meet The Press program.

He acknowledged the economic recovery has been slow to gain momentum, but said the moderate pace is to be expected after a severe downturn made worse by a catastrophic financial crisis.

"This was a recession caused by a set of policies that left us with a $1.3-trillion deficit when the president came into office, and an economy that was falling off the cliff," he said. "Millions of Americans had already lost their jobs. The recession was a year old at that point. And given that Americans had been borrowing too much and we had a huge growth in risk-taking and leverage in the financial system, what you would expect is a more moderate-paced recovery than is typical."

Some economists worry about the possibility of a so-called "double-dip" recession, where the economy appears to be recovering, then stalls and plunges back into negative growth. Geithner said he sees no evidence that another downturn is imminent.

In the long term, the treasury secretary said the United States will be well-served by a financial reform bill President Barack Obama signed into law last week that attempts to shield the nation from the costs and economic damage arising from the collapse of major private financial institutions.

Appearing on ABC's This Week program, Geithner said the law will also help ordinary Americans.

"It will help consumers make better [financial] choices, with better disclosure and much more clarity about the terms of a credit card contract or mortgages loans," he said. "It also gives authority we [the federal government] did not have to put strong constraints on risk taking, on all the nation's largest [financial] institutions. That authority did not exist before, and it was central to what caused the near-collapse of the financial system."

The treasury secretary said President Obama will continue to champion tax cuts for all but the wealthiest Americans, as well as small businesses to foster economic expansion and job growth. He said tax hikes on top earners will be necessary to help tackle the massive federal budget deficit, which exceeds $1 trillion this year.

You May Like

Video Is West Doing Enough to Tackle Islamic State?

There is growing uncertainty over whether West’s response to ISIS is adequate More

China Crackdown on Dual Citizens Causes Concern

New policy encourages reporting people who obtain citizenship in another country, but retain Chinese citizenship; move spurs sharp debate More

Video Coalition to Fight Islamic State Could Reward Assad

Losing ground to Islamic State fighters, Syria's government says it is ready to cooperate with international community 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.
Is West Doing Enough to Tackle Islamic State?i
X
Henry Ridgwell
August 29, 2014 12:26 AM
U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Pachyderms Play Polo to Raise Money for Elephants

Polo, the ancient team competition typically played on horseback, is known as the “sport of kings.” However, the royal version for one annual event in Thailand swaps the horse for the kingdom’s national symbol - the elephant. VOA Correspondent Steve Herman in Samut Prakan reports that the King’s Cup Elephant Polo tournament is all for a good cause.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.

AppleAndroid