US treasury head warns of high oil prices

03-07-2008

US treasury head warns of high oil prices
US treasury secretary Henry Paulson today warned high oil prices increase risks to the US economy.

Speaking after a meeting this morning with Alistair Darling and a number of UK financial chief executives, Mr Paulson warned about the effects of high oil prices – now heading to a record price of $144 dollar a barrel.

He said: "This is a tough quarter we are in, we have challenges.

"Oil prices are a strong headwind and there is a high risk they will prolong a slowdown."

However, Mr Paulson maintained some confidence in the US economy.

"Given the challenges, the economy is hanging in as well as possible. We have a resilient economy. There is a very strong possibility we will be growing at the end of the year. The long-term fundamentals are strong."

He added the current problems facing the US economy were "not acceptable to the American people".

Mr Darling meanwhile confirmed the greatest threat to the UK economy – stemming from rising oil and food prices – was inflation.

"Of utmost importance is we do not get into position where inflation is entrenched – as seen in the 1970s, 1980 and 1990s, when inflation was at eight per cent," the chancellor said.

"Countries need to work together to bring down prices, which are way above what people would have expected two years ago."

He added many of the problems facing the UK economy are very different from previous crises – due to the international pressures.

Mr Paulson and Mr Darling also discussed regulation to capital markets to promote stability and bring a close to the credit crunch.

Also on the agenda were ways of ending funding to terrorist organisations, with Iran specifically dealt with.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure