Economy is still hurting, but thaw in credit good sign
WASHINGTON – President Barack Obama declared Friday that the slumping economy has begun to show “glimmers of hope,” but cautioned that it remains severely stressed and will require lots more work to turn it around.
Once criticized for talking too pessimistically about the economy, Obama is highlighting the positive.
“We’re starting to see glimmers of hope across the economy,” the president said after a White House meeting with his economic team, including Treasury Secretary Timothy Geithner and top economic adviser Larry Summers. Federal Reserve Chairman Ben Bernanke also participated in the session.
Obama echoed Summers’ prediction a day earlier that the “sense of a ball falling off a table” would end in a few months.
The president highlighted signs of thawing in the credit markets, particularly for small businesses seeking loans, along with tax cuts he said workers will soon see in their paychecks and a jump in mortgage refinancings due to historically low interest rates.
Obama said those positive moves as well as infrastructure work and other spending underwritten by his $787 billion stimulus program all point to welcome signs of long-anticipated economic improvement.
“We’re starting to see progress,” Obama said. “And if we stick with it, if we don’t flinch in the face of some difficulties, then I feel absolutely convinced that we are going to get this economy back on track.”
The president threw in a dose of sober reality, too.
“Now, we have always been very cautious about prognosticating and that’s not going to change just because it’s Easter,” Obama said. “The economy is still under severe stress.”
Unemployment hit a 25-year high of 8.5 percent in March, and many people are still losing their homes or jobs, or fear losing them.
“So we’ve still got a lot of work to do,” Obama said. Without elaborating, he said the administration would take steps in the coming weeks to help further improve the business climate.
Gauging Wall Street’s response to Obama’s more upbeat take had to wait as the markets were closed for Good Friday.