Using his first Sunday talk show appearances to promote President Obama’s massive government spending plan to ease credit, help borrowers and inject billions of dollars into the financial sector, Treasury Secretary Tim Geithner defended his approach to fixing the country’s economic mess Sunday, saying “the market will not solve this.” Geithner said Washington alone was equipped to salvage an economy that has seen jobs lost and credit shrink….”[T]he great risk for us is we do too little, not that we do too much,” he said.
The Treasury Secretary confidently brushed off Republican criticism that too much spending would send the economy into out-of-control inflation. “Will never happen. Because we have a strong, independent Fed, with a clear authority from the Congress to keep inflation low at — stable at low levels going forward,” he said. [via AP]