Paulson sees market turmoil stalling US growth, but no recession |
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Published
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Thu, 16 Aug 2007 06:38
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LONDON (Thomson Financial) - US Treasury Secretary Henry Paulson said the turmoil in global markets will 'extract a penalty' on growth but the financial system and economy are 'strong enough to absorb the losses' without provoking a US recession.In an interview with the Wall Street Journal, Paulson said: The market turmoil occurs 'against a backdrop of a very healthy global economy with strong fundamentals.''Looking over periods of stress that I have seen, this is the strongest global economy we have had,' he said.Some funds or businesses may go under and the 'adjustment' in financial markets is likely to continue, Paulson said, but he emphasized that he expects the US economy to keep growing nonetheless.Paulson also said the repricing of risk in markets should not surprise anyone and is 'inevitable', and that nothing should be done to guarantee market players against losses or restrain them from taking risks.tf.TFN-Europe_newsdesk@thomson.comjlwCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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