Treasury Secretary Timothy Geithner testified before several key committees on Capitol Hill this week, defending President Barack Obama’s proposed budget, arguing that a gradual approach to tackling debt is smarter than a sudden, sharp spending-cut strategy, in light of the wobbly economy. In prepared remarks, Geithner said - deficit reduction needs to be gradual to avoid endangering the recovery. He said it’s important for the country to get its revenue-to-spending ratio in balance before anything else.
Senator Tom Coburn asked Geithner if he felt “safe” about the country running trillion-dollar deficits over the next few years, Geithner said it was imperative for the country to put a plan in place as soon as possible to show the international finance community that the country is on the right track. Geithner promised, - we will weaken, impair and impede the country if we don’t lock-in some reforms now.