August 2nd, 2009
01:24 PM ET
5 years ago

Obama adviser: 'It's gonna be a long, hard slog getting out of this'


WASHINGTON (CNN) – One of the president’s top economic advisers said Sunday that the nation’s recessionary economy has begun to turn around but there’s still a ways to go to get back to economic growth.

“We did get some positive news this week,” Romer said of reports that the gross domestic product contracted just 1.0 percent in the second quarter of this year.

“The slowdown is certainly slowing down,” Romer said, comparing the second quarter GDP figure to the 6.4 percent GDP contraction in the first quarter. “But we still have a ways to go before we hit bottom and certainly it’s gonna be a long, hard slog getting out of this.”

“We, like most private forecasters, think that real GDP growth will probably turn positive before the end of the year,” Romer told CNN National Political Correspondent Jessica Yellin, ”but that’s just the first step. You’ve got to start growing again before you start adding jobs. But the other thing is you’ve got to grow quickly to really bring the unemployment rate down.”

With the national unemployment rate hovering just under ten percent (and expected to climb in the next jobs report), and with President Obama saying in his weekly address that he will not “rest until every American who wants a job can find one,” Romer also said that a further extension of unemployment benefits is on the table in discussions between the Obama administration and Congress.

Romer also said Sunday that the administration still believes Obama’s $787 billion stimulus package will save or create 3.5 million jobs by the end of 2010 as originally anticipated.

Finally, Romer said the administration continues to work on financial regulatory reform intended to prevent another near collapse of the financial system like the one that occurred last fall.

“We are working very hard on this,” Romer told Yellin.

“I don’t promise anything for the Congress,” Romer said when asked whether she could assure that the financial reforms would be enacted this year.

“We’re going to absolutely do everything we can,” said Romer.


Filed under: Christina Romer • Economy • State of the Union
soundoff (28 Responses)
  1. cramit

    Another 500,000 unemployed last month , economy shrinking at 1% . More taxes and job killing programes on the way ....AND WE HAVE TURNED THE CORNER???? I want what they are smoking

    August 2, 2009 03:49 pm at 3:49 pm |
  2. MatthewDetroit

    Barack STOP spending our money.
    It is not yours.
    You are spending and I am sure when your time is done you and your cronies will have made millions.
    STOP STEALING OUR MONEY.
    STOP SPENDING.
    STOP THE HEALTH CARE CRAP.
    STOP THE CARBON TAX AND TRADE.
    STOP THE STIMULUS SPENDING.
    STOP THE CAR CRAP PLEDGE.
    JUST STOP SPENDING.

    August 2, 2009 03:53 pm at 3:53 pm |
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