Summers: Economic 'free-fall' ending
Andy Barr Andy Barr – Thu Apr 9, 4:32 pm ET
White House economic adviser Lawrence Summers predicted on Thursday that the U.S. economy would end its “free fall” in a few months.
“I think we can be reasonably confident that that's going to end within the next few months, and you will no longer have that sense of free-fall,” Summers told the Economic Club of Washington
Still, Summers warned that the economy faces “substantial downdrafts.”
“Even if we got a return to positive growth — an economy that was growing at 1 percent would be an economy with rising unemployment,” he said. “I don't think we can hold out the prospect we'll stabilize at the current level.”
The director of National Economic Council also addressed criticism that it may not be prudent to push major health care reforms during the current economic crisis.
“Addressing needs of uninsured is an absolutely necessary condition for taking steps that are necessary, are crucial, if we are going to fight for middle-income growth that is needed to improve the economy,” he said.