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Obama: Shutdown slowed economic growth, damaged US credibility

Thursday, 17 Oct 2013 | 11:05 AM ET
Obama: Economy hurt by 'self-inflicted' crisis
Thursday, 17 Oct 2013 | 11:02 AM ET
President Obama says those who "manufactured" the budget crisis say they're trying to help the economy, but they are actually hurting it.

The just-ended fiscal crisis undermined U.S. credibility abroad and slowed economic growth at home, President Barack Obama said Thursday.

Hours earlier, Obama signed a compromise deal passed by the House and Senate after weeks of bickering. It extended the debt ceiling until until Feb. 7 and reopened the government by approving funding only until Jan. 15, lifting what he described as the "twin threats to our economy" for now.

(Read more: Shutdown's ripple effect on spending)

"There are no winners here—these last few weeks have inflicted completely unnecessary damage on our economy," Obama said. "We don't know yet the full scope of the damage, but every analyst out there believes it slowed our growth."

(Read more: This is what the shutdown really cost you)

President Barack Obama addresses the end to the debt ceiling crisis on Oct. 17, 2013.
Source: Whitehouse.gov
President Barack Obama addresses the end to the debt ceiling crisis on Oct. 17, 2013.

Obama said just the threat of default increased the country's borrowing costs, which adds to the deficit.

As a result of the uncertainty, many consumers have slashed their spending and half of CEOs said the shutdown set back their hiring plans over the next six months, he said. The American people are also fed up with Washington, he added.

(Read more: Main Street 'damage done' as government reopens)

"We know that families have gone without paychecks or services they depend on," he added. "We know that potential homebuyers have gotten fewer mortgages and small business loans have been put on hold."

President Obama's not so sweet victory
"I heard one angry president," says CNBC's John Harwood, reporting on the President 'venting' about the cost of the shutdown and the insult to furloughed Federal workers.

While some members of Congress pushed for the shutdown saying they were doing it for the economy, Obama said "nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises."

"At a moment when our economic recovery demands more jobs, more momentum, we've got yet another self-inflicted crisis that's set our economy back and for what? There was no economic rationale for all of this," he said.

—By CNBC's Katie Little. Follow her on Twitter @KatieLittle

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