Sunday June 28, 11:21 PM
White House advisor hopeful on US economic recovery
WASHINGTON (AFP) - The United States could experience strong growth as it comes out of the current economic downturn, a senior advisor to US President Barack Obama told the Financial Times on Sunday.
"I still hold out hope it will be a V-shaped recovery. It might not be the most likely scenario but it is not as unlikely as many people think," Christina Romer told the newspaper.
Romer, chairman of the president's council of economic advisors, said an influx of stimulus spending would be pumped into the economy this summer and fall.
"We always knew we were not going to get all that much fiscal impact during the first five to six months. The big impact starts to hit from about now onwards," she told the Financial Times.
The government's massive stimulus spending package has been criticized for expanding the already-large US deficit, but Romer warned that cutting spending before the economic crisis is through could be disastrous.
"We do not want to repeat the mistake Japan made in the 1990s, when the moment things started to improve they tightened policy," she said.
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