Montenegro anuncia redução de IRS nas rendas, isenção de mais-valias e maior dedução à coleta

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Jan. 11 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson said the U.S. economy slowed ``rather materially'' at the end of 2007, and any steps to jumpstart growth will be ``temporary.''

``If there is stimulus, I think the purpose will be to help the economy this year,'' Paulson said in interview on Bloomberg Television's ``Political Capital with Al Hunt'' to be aired this weekend. ``Time will be of the essence.''

Paulson, the former chairman of Goldman Sachs Group Inc., said President George W. Bush still hasn't decided if tax cuts or other fiscal measures are necessary. Paulson acknowledged that consumers are facing ``challenges,'' including a further decline in housing prices, higher energy prices and a weaker labor market.

The world's largest economy was ``slowing down rather materially at yearend, there is no doubt about that,'' Paulson, 61, said in Washington. ``If you look at the data, it's mixed.''

Residential investment has declined for seven consecutive quarters, and Federal Reserve officials say it may take at least six more months before housing markets rebound.

Payrolls rose by 18,000 last month, with the first decline in private jobs since 2003. The unemployment rate rose to 5 percent, the highest level in two years.

Bipartisan Support

Economists from Harvard University's Lawrence Summers, a former Treasury secretary, to Lawrence Lindsey, the former director of Bush's National Economic Council, are calling for temporary fiscal policies to revive the economy.

Lindsey, in an interview yesterday with Bloomberg Television, said the administration likely would propose temporary tax cuts and credits aimed at ``moderate-income, working families,'' and that the relief was needed immediately.

``The sooner they get one passed, the better,'' Lindsey said from New York. ``The biggest challenge the U.S. economy is going to have this year is household cash flow.''

Goldman Sachs economists this week concluded the latest employment report signaled a ``recession has now arrived, or will very shortly.''

Those predicting a recession remain in the minority. The U.S. economy will average growth of 1.5 percent in the first half of 2008, according to the median estimate of 62 analysts surveyed by Bloomberg News earlier this month.

Paulson said the U.S. economy ``is going to continue to grow,'' getting a boost from exports.

``If you look at anecdotal evidence, it shows the economy is slowing down,'' Paulson said. ``We're focused on the risks, the president is focused on the risk.''

To contact the reporter on this story: Kevin Carmichael in Washington at kcarmichael@bloomberg.net .