Geithner warns of rough spots in recovery

WASHINGTON, April 5 (UPI) -- U.S. Treasury Secretary Timothy Geithner said Sunday it is premature to know if the White House will ask Congress for additional stimulus funds.

In an appearance on CBS's "Face the Nation" program, Geithner warned that efforts to jump-start the recessionary U.S. economy are not going to be smooth.


"We're going to have fits and starts. There will be a period where it feels very bad and uncertain," he said in the interview. He said also that job losses may get worse before the economy improves. Unemployment has already reached 8.5 percent, the worst in decades.

"The typical pattern of recoveries is that growth recovers, growth starts to turn positive, people start to spend more, people -- businesses hire more, they invest more, before you see unemployment peak," he said. "That's the crude reality of recoveries."

Among the bright spots in the economy, Geithner pointed to the mortgage rates, which are at historic lows.

"Millions of Americans now are going to be able to refinance their homes, take advantage of lower interest rates. That's cash in the hands of the American people, and that's very powerful," he said.


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