Video: Tim Geithner with Jake Tapper -- February 7, 2010
- “Absolutely not. And that will never happen to this country.”
- “When people were most worried about the stability of the world, they still found safety in the Treasuries and the dollar. That is a very, very important sign of basic confidence in our capacity as a country to work together to fix these problems.”
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Dow Jones
Bond rating agency Moody's Investors Service warned Wednesday that the triple-A rating of U.S. treasury bonds could be in peril unless the federal budget deficit is reduced or the economy rebounds.
The U.S. Treasury official noted that when investors were on edge about a global financial crisis, they sought safety in U.S. Treasury securities and the U.S. dollar,
"That is a very, very important sign of basic confidence in our capacity as a country to work together to fix these problems," Geithner told ABC-TV.
The Obama administration is "deeply serious" about deficit reduction, according to Geithner, who endorsed the creation of a bipartisan commission that would be charged with recommending ways to reduce the federal deficit over the long haul.
Geithner sounded an upbeat note on the U.S. economic outlook, saying "we're seeing some encouraging signs of healing," with the economy expanding at nearly 6% in the fourth quarter and the most recent unemployment report, which showed the jobless rate fell modestly.
"This is going to take awhile and it's going to be uneven," Geither cautioned. While the risks of a double-dip recession are much lower than they have been, Geithner said "we have more work to do" to spur job creation.
The Treasury Secretary disputed remarks by newly elected Sen. Scott Brown (R., Mass.), that the economic stimulus package enacted by Congress last year has failed to create jobs.
"I don't think there's any basis for that judgment," Geithner said. He called the stimulus measures "very, very effective," and pointed to improvement in the overall economy, noting: "We have an economy now that's growing again. With growth, you're going to see jobs created."
Regarding prospects for financial overhaul, the Treasury Secretary said President Obama is committed to ensuring that Congress enacts tough measures recommended by former Federal Reserve Board Chairman Paul Volcker to reduce risk-taking by the nation's largest banks.
Geithner added that "I am very confident we're going to be able to do that."
Overall, Geithner said "we have made dramatic progress in trying to make sure we bring stability to this financial system at a much lower cost than anyone anticipated."
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