US fiscal stimulus spending will start to give a significant boost to growth in the third quarter, according to Christina Romer, a senior White House official.
Ms Romer, chairman of the Council of Economic Advisers, told the Financial Times she was “more optimistic” the economy was near to stabilisation.
However, she warned against tightening monetary and fiscal policy before recovery was well established, saying: “We do not want to repeat the mistake Japan made in the 1990s, when the moment things started to improve they tightened policy.”
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