Economic Deterioration Starting to Slow: Geithner
The pace of economic deterioration has started to slow down in some areas, Treasury Secretary Timothy Geithner told CNBC Wednesday.
“That’s promising but it’s going to take some time to work through,” he said in a taped interview. “The government is putting enough force on the economy as a whole and into the financial system so that we bring recovery back as soon as possible.”
Although the TARP has “substantial” resources, said Geithner, the crisis may require additional funding. In addition to government intervention, the private sector would also need to take part in stimulating recovery, he said.
“The government is going to have to take some risks but we need the investors and markets to take risks alongside us,” Geithner said. “There’s going to be a clear set of rules of the game consistently enforced and I think we’ll get to the right balance.”
Greater disclosure over financial institutions and liquidity in the financial system are essential in restoring confidence in the markets, he said.
“We want to make sure that the markets understand there will be enough capital in the system so there’s enough lending capacity to get through this kind of recession,” he said.
Geithner also said the Obama administration was committed to minimizing the U.S. trade deficit.
"Once we get through this recession, we're going to bring our resources and commitments more into balance and have sustainable deficits that leave our debt burden at a low and stable level over time," he said.
Geithner acknowledged that not everyone would agree with Washington's policies.
“We have no choice but to act our strategy,” he said, “Our strategy is going to be action.”
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