US economic adviser flags second stimulus
White House adviser Laura Tyson, a member of US President Barack Obama’s Economic Advisory Panel, has flagged the possibility of a second financial stimulus package to focus on infrastructure.
Speaking at a forum in Singapore, Tyson said it was too early to put a figure on a second package, deferring the decision: “We’ll have a much better idea towards the end of the year.”
The first stimulus has not had as positive an effect on unemployment figures as expected due to the global economic crisis affecting the US more deeply than anticipated.
“The question is whether the US economy has reached a level of stabilisation yet, but the recent unemployment numbers tell me it hasn’t,” said Tyson. “Businesses are likely to rehire employees at a slower pace than in the previous two recessions, so unemployment is going to be a lagging indicator.”
The second deal will focus on building projects, and may be needed to put the US economy on the right track, she added.
Tyson noted that her comments were her own and not that of the Obama administration.
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