U.S. Treasury Secretary Timothy Geithner, former president and chief executive for the Federal Reserve Bank of New York, said today that the U.S. economy faces some risks associated with the European debt crisis, higher oil prices, year-end budgets and also tax increases. Mr. Geithner is also the last remaining member of Obama’s initial economic team and was a proponent for the financial institution bailouts in 2009, including easing conditions on financial institutions.
“We still live in a dangerous and uncertain world, with Europe confronting a severe and protracted crisis,” Geithner said in his remarks before the Greater Baltimore Committee group of non-profit organizations and regional businesses. He also went on to say “A credible strategy for economic growth requires a willingness to do things, not just cut things.”
Geithner also went on to say that the United States was facing “very tough challenges,” but then continued with words that they were manageable. “I prefer our challenges to those of any economy anywhere in the world,” and added that the expiration of the tax breaks along with the threat of budget cuts would be an opportunity for politicians to develop ways for a more controllable fiscal path.
At the same time, with talks of quantitative easing coming for QE3 and additional monetary policies contributing to the ballooning U.S. National Debt, the Federal Reserve will have to resort again to more actions to provide additional loans to banks to aid an economic stimulus.