U.S. Treasury Secretary Timothy F. Geithner said the economy is making progress while tough challenges lie ahead.
“The balance sheet of the business sector is exceptionally strong, and the economy as a whole is more productive than before the crisis,” Geithner said in remarks prepared for delivery to the Economic Club of Chicago today. “These are promising developments, but we still face some very tough challenges.”
Geithner said the challenges to the American economy are about barriers to economic opportunity, economic security and political constraints while “Europe and oil still present risks.”
“These challenges can only be addressed by government action to help speed the recovery and repair the remaining damage from the crisis and reforms and investments to lay the foundation for stronger future growth,” Geithner said.
The Federal Reserve said it would refrain from increasing monetary accommodation unless the economic expansion falters or prices rise at a rate slower than its 2 percent target, according to minutes of the March 13 policy meeting released yesterday.