Paulson says Housing Remains Biggest Threat

July 31, 2008 10:37:12 AM PDT
Treasury Secretary Henry Paulson says the $168 billon government stimulus effort has proven to be a timely support for the economy and will continue to assist growth in the second half of this year. Paulson predicted in a speech Thursday that the economy will continue growing moderately the rest of this year even though the country faces major problems from the housing slump.

"We are making progress although not in a straight line," Paulson said. "Housing continues to be at the heart of our economic challenges and remains our most significant downside risk."