A top Obama Administration official today said that the $787 billion stimulus plan is yielding desired results in reviving the American economy and the GDP growth might turn positive by the end of the year.
"The Recovery Act, together with the actions taken by the Treasury and the Federal Reserve to stabilize financial markets and the housing sector, is helping to slow the decline and change the trajectory of the economy," said Christina D Romer, Chair Council of Economic Advisers.
"It is providing a crucial lift to aggregate demand at a time when the economy needs it most. And, we anticipate that the effects will build through the end of this year and the beginning of the next," Roemer said in her address to the Economic Club of Washington, today.
"I firmly believe that when the history of this period is written, the Recovery Act will be seen as the beginning of the end of this terrible economic crisis," Roemer asserted.
Noting that there is ample evidence that stimulus plans work, Romer said that fiscal stimulus is the obvious step to take when the economy is in decline and conventional monetary policy has been exhausted is borne out by the actions of other countries.
