Timothy Geithner , the U.S Treasury Secretary has warned the Congress over debating over the debt limit thereby repeating last year’s mistake and continued to say that the economy is looking strongest in the past few years .
On NBC’s “meet the press “ program he said that the Congress should refrain from creating any drama or politics and making damages this year as they did last summer . He was referring to the reluctance of the lawmakers to raise the debt limit until the last hour agreement with the Obama government .
According to him, the U.S wont hit the limit again until late into the year .
The Americans should be feeling much more confidence in the economy than they had some four five years ago , though still calling it as a very tough economy.
Geithner seems to be defending the case of Obama’s record with Republican nominee Mitt Romney sharpening criticism ever since Santorum withdrew from the race on April 10. According to Geithner , the economy wasn’t completely safe either with threats like Euro crisis and oil prices still looming large .
The debate last year, which extended for almost a month over raising the debt ceiling, led to a heavy fall in confidence of both consumers and businesses . The atmosphere in the market over them was like the one in times of the recession and was very damaging but completely unnecessary .
Global economic growth along with concern over Iran has led to increase in the prices of oil and gasoline in the last few months , future prices will depend on how the efforts by the global community are able to withhold Iran from continuing Iran with its nuclear program. According to AAA , the price of a gallon of gasoline was at a ten month high of $3.94 last week and only dropped slightly this week.
Unemployment data showed that the country added only 120,000 jobs in the month of March which was below the benchmark laid down by even the most pessimistic economist. The rate was at 9.2 last year and has dropped to 8.2 % at present.
Jobless claims rose by 13,000 for the week ending April 7 to 380,000 . The administration will also be looking at continuing the Buffet Rule which proposes a minimum tax on the people thereby ensuring $1 million annually. The minimum tax is named after Warren Buffet who had said that he payed lower tax rates than his own secretary primarily because of the preferential of the capital gains and dividends . The rule will go through a procedural vote in the Senate on Monday.