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Saturday, June 13, 2009

Geithner: "Economic storm receding"

by Calculated Risk on 6/13/2009 06:03:00 PM

From Reuters: Geithner: It's Too Soon To Withdraw Economic Stimulus

US Treasury Secretary Timothy Geithner said on Saturday it was too early to start withdrawing stimulus for the world's top economies, but governments should pledge a return to more sustainable fiscal policies in the future.

"Growth should remain the principal focus of policy among the G8 and broader G20 economies," Geithner told a news conference ... He said recovery has not yet arrived, and governments need to keep reinforcing recent improvements in global demand.

"It is too early to shift toward policy restraint," Geithner said
Geithner said the "force of the economic storm is receding" he told the BBC in Lecce that he wanted recovery firmly in place before withdrawing stimulus.

"We don't have a world economy that's growing anywhere close to potential yet. We want to see recovery firmly established before we start to get on to the next challenge," he said in the interview.
From NY Times: At Talks, Geithner Defends Stimulus
Where we have seen improvements, they are the result of the unprecedented scope and intensity of policy actions to support demand and financial repair,” Mr. Geithner said in a statement. “These early signs of improvement are encouraging, but the global economy is still operating well below potential, and we still face acute challenges.”
emphasis added
Despite the "unprecedented scope and intensity of policy actions", the global economy (and U.S. economy) are still in recession, and the so-called "improvements" are that the pace of contraction has slowed. We still have a ways to go.