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Reuters Summit-Geithner says focus still on US economic recovery

Published 10/20/2009, 05:55 PM
Updated 10/20/2009, 05:57 PM

WASHINGTON, Oct 20 (Reuters) - The Obama administration must stay focused on ways to reinforce the U.S. economy's fledgling recovery and the time for tightening the budget will come later, U.S. Treasury Secretary Timothy Geithner said on Tuesday.

"For there to be a recovery that's self-sustaining over time ... people have to be confident that we'll bring those deficits down over time and that's a difficult balance," he told Reuters in an interview. "Right now, the overwhelming imperative we face is still to make sure that we reinforce this nascent recovery."

Speaking at the Reuters Washington Summit, Geithner also said the administration will allow some of the flagship programs that had defined the $700 billion financial rescue program to wind down.

He reiterated that a strong dollar was important to the United States, and said Washington needed to pursue policies that strengthen the country's long-term economic prospects, including putting the budget on a more-sustainable track.

The U.S. dollar has fallen to 14-month lows against a basket of currencies as investors have worried that huge U.S. budget deficits mean the United States will be forced to keep borrowing at record levels. (Reporting by Glenn Somerville, David Lawder, Emily Kaiser, Tim Ahmann, editing by Anthony Boadle)

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