Romer 'More Optimistic' on Recovery: Report

The head of the White House council of economic advisors is "more optimistic" that the US economy is close to stabilization, the Financial Times reported Monday.

The emergency spending package will boost the economy over the next few months, but while a V-shaped recovery is still possible it is too soon to begin raising interest rates, Christina Romer told the paper.

"We do not want to repeat the mistake Japan made in the 1990s, when the moment things started to improve they tightened policy," she said.

With the White House facing criticism from Republicans that the $787 billion stimulus packages hasn’t prevented a spike in the jobless rate, Romer said spending will "ramp up strongly" in the summer and fall, the FT reported.