Rice: US economy is resilient
DAVOS, Switzerland (AP) - January 23, 2008 Speaking to an audience of chief executives and world leaders,
Rice said the $150 billion stimulus package proposed by President
Bush would "boost consumer spending and support business
investment this year."
Her remarks came after two days of wild market swings worldwide
and the surprise Federal Reserve interest rate cut on Tuesday
lowered its benchmark rate to 3.5 percent from 4.25 percent in
between regular policy-setting meetings.
"I know that many are concerned by the recent fluctuations in
U.S. financial markets, and by concerns about the U.S. economy,"
Rice said. "President Bush has announced an outline of a
meaningful fiscal growth package that will boost consumer spending
and support business investment this year."
She said U.S. Treasury Secretary Henry Paulson, who canceled his
own visit to the World Economic Forum annual meeting at the last
minute, was "leading our administration's efforts and working
closely with the leaders of both parties in Congress to agree on a
stimulus package that is swift, robust, broad-based, and
temporary."
The U.S. economy is "resilient, its structure sound, and its
long-term economic fundamentals are healthy," Rice said. "And our
economy will remain a leading engine of global economic growth,"
she added.
"So we should have confidence in the underlying strength of the
global economy - and act with confidence on the basis of the
principles that lead to success in today's world."