Obama Sees "Glimmers Of Hope" In Economy
Following a meeting with members of his economic team today, President Obama said people are "starting to see is glimmers of hope across the economy."
(AP Photo/Gerald Herbert)
"Now we have always been very cautious about prognosticating, and that's not going to change just 'cause it's Easter," he continued. "The economy is still under severe stress...right now, we're still seeing a lot of job losses, a lot of hardship, people finding themselves in very difficult situations."
Still, he said, "we're starting to see progress. And if we stick with it, if we don't flinch in the face of some difficulties, then I feel absolutely convinced that we are going to get this economy back on track."
The president cited an increase in the number of Americans refinancing their mortgages and a 20 percent increase in a key Small Business Administration program as evidence that the economy is showing signs of recovery.
Mr. Obama made the comments after meeting with Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, economic adviser Larry Summers and others. He said he spoke with the group about the housing market and financial system, as well as a program to help banks deal with bad assets.
"Whatever we do ultimately has to translate into economic growth and job," the president said.
Mr. Obama promised that the administration will be making additional moves "over the next several weeks" to help the economy.
"We've still got a lot of work to do," he said.
The president's full comments, as prepared by the White House, are below.
PRESIDENT OBAMA: Well, first of all, Happy Easter and Happy Passover. I'm sorry that you guys, like us, are working today.
We just had a terrific conversation with Ben Bernanke, Sheila Bair, and our entire regulatory group to talk about progress that we're making on the economy. And I wanted to just give you a little bit of a sense of the efforts that we've been making in stabilizing the financial markets.
And I want to thank SEC Chair Mary Shapiro, as well as Comptroller of the Currency John Dugan, for joining us. They weren't with us the last time we met.
We discussed ongoing stabilization of the financial system and the steps that have already been taken. I spoke yesterday about the progress that's been made in the housing market. As a consequence of some excellent work by Ben and some coordinated activities between the various agencies, what we've seen is mortgage interest rates go down to historic lows and we've seen a very significant pick-up in refinancings. That has the effect of not only putting money in the pockets of people but also contributing to stabilization of the housing market.
We discussed the public-private investment mechanisms that we have set up so that we can start getting some of these toxic assets off the books. And all the agencies here have been involved in further refining the ideas and making them work effectively, and we feel confident that even as we're dealing with the problems within the banking system, that we're also addressing some of the problems in the non-bank financial system that was such a huge proportion of our credit flow when it came to things like auto loans and credit cards and so forth.
We feel very good about the progress that we're making in unlocking lending in some particular markets, for example the small business area. Some of you will recall that a couple of weeks ago we made a presentation about how we were going to help thaw lending to small businesses, and I'm pleased to discover that because of our actions we've seen a 20 percent increase in the largest SBA loan program in the last month alone.
And what that means is that small businesses are starting to get money that allows them to keep their doors open, make payroll, and that is going to contribute to our overall economic growth, as well as help make sure that people are able to keep their jobs.
And we have also seen this month people starting to get their first checks in terms of the tax cuts that were initiated through the recovery package. And when you combine it with the other efforts that are being made across the country for infrastructure projects, for the kinds of innovative energy programs that were part of the recovery package, what you're starting to see is glimmers of hope across the economy.
Now, we have always been very cautious about prognosticating and that's not going to change just because it's Easter. The economy is still under severe stress and obviously during these holidays we have to keep in mind that whatever we do ultimately has to translate into economic growth and jobs and rising incomes for the American people. And right now, we're still seeing a lot of job losses, a lot of hardship, people finding themselves in very difficult situations either because they've lost their home, they've seen their savings deteriorate, and they're still at risk of losing their jobs.
So we've still got a lot of work to do. And over the next several weeks you will be seeing additional actions by the administration. What I just wanted to emphasize today, and I think that Ben Bernanke and Sheila Bair and our economic team as a whole would agree, we're starting to see progress. And if we stick with it, if we don't flinch in the face of some difficulties, then I feel absolutely convinced that we are going to get this economy back on track.
All right? Thank you very much, guys.
Q Is it still going to get worse before it gets better?
THE PRESIDENT: Thank you, guys. Appreciate it.
Q Sir, are you saying the recession is abating?
THE PRESIDENT: I'm saying we're seeing progress.
Q You're saying what?
THE PRESIDENT: I've said that we're seeing progress.
Okay, thank you, guys. Have a wonderful holiday.
Q Thank you, sir.
Q When is the dog coming?
THE PRESIDENT: Oh, man, now, that's top secret. (Laughter.) That's top secret.
THE PRESIDENT: Oh, no, no, this is tightening up. Any of you going to be at the Easter Egg Roll?
Q Oh, yes.
THE PRESIDENT: That's big. (Laughter.) That's big. So we look forward to seeing you on Monday. Thanks, guys.
Q Thank you.
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