Paulson: 'Robust' package can be expedited

Treasury Secretary Henry Paulson this morning expressed optimism that a temporary growth plan can be enacted quickly. Speaking to the U.S. Chamber of Commerce in Washington, Mr. Paulson said that the unemployment rate remains low and job creation continues in the United States “albeit at a modest pace.” But he stressed that the administration believes it is necessary for Congress to quickly pass “a robust package that is large enough to have a real impact on our economy” by bolstering consumer spending and business investment this year. President Bush last Friday proposed a $140 billion stimulus plan. “I am optimistic that we can find common ground and get this done long before winter turns to spring,” Mr. Paulson said. “We can disprove the old Washington axiom that partisan politics prevents most short-term growth packages from being enacted fast enough to do any good,” he said. The administration “will continue to advocate making the president’s tax relief permanent, balancing the budget, and addressing the long-term sustainability of Social Security and Medicare,” Mr. Paulson said. Promising developments are taking place in refinancing mortgages, Mr. Paulson said. The HOPE NOW alliance, which represents more than 90% of the subprime mortgage market and includes industry, counseling organizations, trade associations and investors, assisted 370,000 homeowners in the second half of 2007, and mortgage servicers modified subprime loans during the fourth quarter at a rate three times faster than in the third quarter, Mr. Paulson said.