Tags: larry | summers | recession | us

Obama Adviser Admits U.S. Has Long Way to Go

By    |   Friday, 12 Feb 2010 11:45 AM

Larry Summers, President Barack Obama’s top economic adviser,  says the economy has made great progress but acknowledges that more must be done.

“If you look at a year ago, we were on the brink of depression,” he says.

“The first thing we had to do was avert the collapse, and the recovery act (fiscal stimulus) has been successful in doing that," he told CNBC.

"But we’ve got a long way to go.”

Unemployment, while it fell to 9.7 percent in January, remains a problem, Summers says.

“Clearly, we've got an economy with a large amount of people out of work.”

Summers doesn’t take issue with economists who say that the 5.7 percent growth rate of the fourth quarter isn’t sustainable.

“The growth rate will fluctuate from quarter to quarter, and I think everyone has recognized that there were some special factors in this fourth quarter,” he said.

“At the same time, you have to look at any measure, whether it's GDP or final sales, look at where it is. Look at where it's been, and I think we're in a quite different place." he said.

"But at the same time, that doesn't mean we're in any position to pop champagne corks.”

Pimco Chief Investment Officer Bill Gross also is worried about the jobless rate.

“To posit a vibrant private economy based on the job destruction we’ve experienced is extreme,” he told CNBC.

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Larry Summers, President Barack Obama s top economic adviser, says the economy has made great progress but acknowledges that more must be done. If you look at a year ago, we were on the brink of depression, he says. The first thing we had to do was avert the collapse,...
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Friday, 12 Feb 2010 11:45 AM
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