Paulson: Credit Crisis May be Fading

WASHINGTON -- The worst of the credit crisis may have passed, Treasury Secretary Henry Paulson said Wednesday, while acknowledging that rising gas prices will blunt the effect of 130 million economic stimulus checks. He ruled out a second stimulus package for now, Paulson said in an interview with The Associated Press.

Paulson told the AP that the turmoil that has gripped Wall Street and took a turn for the worse again in March has eased somewhat. "There's progress," he said. "I think we're closer to the end of this than the beginning."

With oil surging to record levels above $123 per barrel and gasoline prices hovering around all-time highs of $3.62 per gallon, Paulson acknowledged that the high price people are paying at the pump would diminish the impact of the stimulus payments that are designed to give the economy a jump-start.

"Obviously, the high price of gasoline is unwelcome and is a challenge and is a headwind," he said, according to the AP.

-- NYSSCPA.org News Staff

Posted on 5/7/08