Paulson: Market turmoil to slow U.S. growth

But strength of markets, economy should prevent a recession, Treasury Secretary tells Wall Street Journal.


LONDON (CNNMoney.com) -- Treasury Secretary Henry Paulson said the current turmoil in financial markets will slow economic growth but should not spark a recession, according to a report published Thursday.

Paulson told the Wall Street Journal that the turmoil "will extract a penalty on the growth rate" of the U.S. economy, but that "the economy and the markets are strong enough to absorb the losses" without triggering a recession.

paulson_henry_treasury.gi.03.jpg
Treasury Secretary Henry Paulson expects the current market turmoil will slow U.S. economic growth, but he doesn't see a recession occurring.

Paulson, the former CEO of Goldman Sachs (Charts, Fortune 500), also told the newspaper that some funds or businesses may go under as the markets adjust, but that he expects the U.S. economy to keep growing.

Paulson noted that the turmoil is financial markets is happening "against a backdrop of a very healthy global economy with strong fundamentals," according to the report. Top of page

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.