Treasury Secretary Says US Unemployment May Peak in Second Half of 2010

Another extension in unemployment benefits “is something that the administration and Congress are going to look very carefully at as we get closer to the end of this year,” Geithner said in an interview yesterday on ABC’s “This Week” program.

The U.S. economy contracted at a better-than-forecast 1 percent annual pace in the second quarter, the Commerce Department reported July 31. Stabilization of housing markets and consumer spending, a lessening of financial turmoil and increased government spending all suggest the longest recession since the 1930s may be close to ending.

“There are signs the recession is easing,” Geithner said. “The broad consensus of private forecasters is that you are going to see positive growth in the second half of this year and expect that to continue.” It is “not clear yet” how strong growth will be, he said.

Geithner’s appraisal was backed by former Federal Reserve Chairman Alan Greenspan who said, “collapse, I think, is now off the table.