Summers: U.S. economy on path to growth – FT

LONDON, April 2 (BestGrowthStock) – The U.S. economy is on the path
to achieving self-sustaining growth, although the jobs outlook
remains uncertain, White House economic adviser Larry Summers
said in a newspaper interview to be published on Saturday.

“I think the economy appears to be moving towards escape
velocity,” Summers said in an interview with the Financial
Times. “You hear a lot less talk of W-shaped recoveries and
double-dips than you did six months ago.”

Summers, a former Treasury secretary who advises President
Barack Obama, said the economic recovery appeared to have
“started earlier and more vigorously” than in previous
downturns.

Obama’s action on healthcare, energy and education should
help to restore confidence and stimulate the economy in the
months ahead, Summers added.

However, he warned that it was still unclear whether
companies would start taking on more workers or whether more
action is needed to fuel the recovery.

“Whether firms will start hiring more as it becomes less
tenable to do more with less and you will see some extra pick-up
in employment beyond what is justified in output, or whether
we are just going to have to grow the economy harder to put
people back to work is not certain,” he said.

“What I think is certain is that we walked back from the
brink of depression and that there is a great deal under way
that should result in increased job creation.”

Summers gave the interview before the release on Friday of
data showing U.S. employers created jobs in March at the fastest
rate in three years. [ID:nN01126422]

Obama said it was the best news on the jobs front in two
years. About eight million Americans have lost their jobs since
the start of the recession.

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(Reporting by Peter Griffiths; Editing by Elizabeth Fullerton)

Summers: U.S. economy on path to growth – FT