Geithner: US economic recovery to come slowly

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U.S. Treasury Secretary Timothy Geithner says the Obama administration is making headway in settling financial markets, but the U.S. still has a long way to go for a full recovery.

He says financial companies are adjusting operations in ways that will make them less vulnerable to economic shocks. He says there are encouraging signs the financial system is starting heal. Concern about the systemic risk has diminished, and overall credit conditions have started to improve.

Still, the US faces a very challenging economic and financial environment, and the country need to be careful to provide substantial resources and flexibility to deal with future contingencies.

Timothy Geithner, Treasury Secretary said "The cost of credit is starting to ease. Interest rates on mortgages have dropped to historic lows and refinancing has surged. As I said, putting additional money into the pockets of millions of American businesses, who are finding it easier to raise money in the capital markets, asset backed security markets, are starting to open up again. State and local governments are finding it easier, somewhat easier, to finance investments in their communities and rebuilding their infrastructure. The costs of borrowing by banks has fallen substantially, reflecting greater confidence. We have already seen a very substantial amount of adjustment in our financial system."