Timothy Geithner Speaks On National Unemployment Rate As Recession Blues Hits U.S.August 3rd, 2009 - 6:18 pm ICT by GD
In the midst of speculations regarding the ‘unemployment rate’, the U.S. Treasury Secretary, Timothy Geithner has reportedly said that the unemployment rate may not peak until the latter half of 2010 even though broader economy suggests signs of recovery. While speaking on the unemployment benefits Geithner said, “It is something that the administration and Congress are going to look very carefully at as we get closer to the end of the year.”
Earlier on Sunday, top U.S. officials said that it may be necessary to extend jobless benefits in order to strive for the economic recovery and declined to rule out any sort of hike in the income tax in order to tame the huge budget deficit. “Historically, increased hiring typically lags increases in output, so it’s going to take time before you see it….in the employment statistics,” said White House Economic adviser, Lawrence Summers. According to the sources, about 1.5 million Americans is liable for unemployment benefits in the forthcoming months.
“There are signs the recession is easing,” said Geithner. “The broad consensus of private forecasters is that you are going to see positive growth in the second half of this year and expect that to continue,” he added. With an extended deficit of $1.8 trillion and spending estimated for a $1 trillion health care program, the officials look forward to cut down the economic slump that had plagued U.S.
On the other hand, the administration’s health care reform plans have been under the scanner of the Republicans who are crying foul over the whole issue. “We have put trillions of additional debt on future generations of Americans. In the words of the Congressional Budget Office and others it is unsustainable,” said Republican Sen John McCain.
It was still unclear that whether the U.S. President would be willing to set aside his campaign pledge that suggests not to raise taxes on Americans earning below $250,000 a year. “We have to bring them down to a level where the account we are borrowing from the world is stable at a reasonable level,” quipped Geithner.
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Tags: budget deficit, campaign pledge, congressional budget office, economic adviser, economic slump, employment statistics, future generations, health care program, health care reform, jobless benefits, john mccain, lawrence summers, national unemployment rate, private forecasters, recession blues, sen john mccain, timothy geithner, treasury secretary, u s treasury, unemployment benefits