AP Interview: Paulson says credit crisis may be fading

Treasury Secretary Henry Paulson meets with France's Prime Minister Francois Fillon, Friday, May 2,2008, at the Treasury Department in Washington. (AP Photo/Charles Dharapak)

WASHINGTON—Treasury Secretary Henry Paulson said Wednesday the worst of the credit crisis may have passed but acknowledged that rising gas prices will blunt the effect of 130 million economic stimulus checks. He ruled out a second stimulus package for now.

In an interview with The Associated Press, Paulson said that the turmoil that has gripped Wall Street and took a turn for the worse yet again in March has eased somewhat. "There's progress," he said. "I think we're closer to the end of this than the beginning."

A trio of crisis -- housing, credit and financial -- have pushed the economy to the edge of a recession. To help cushion the blow, the Bush administration and Congress speedily enacted a $168 billion stimulus package of tax rebates for people and tax breaks for businesses.

The first batch of rebate payments started hitting bank accounts last week. The rebates range from $600 to $1,200 plus $300 for each qualifying child.

"We will get some help from the stimulus," Paulson said in the interview. "Later this year, I expect growth will pick up." Still, he acknowledged that the country was facing "tough times" as people struggle with soaring gasoline prices, higher medical costs and a weak jobs market.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) -- Treasury Secretary Henry Paulson says the worst of the credit crisis may have passed. But he acknowledges that rising gas prices will blunt the effect of economic stimulus checks to 130 million taxpayers.

In an interview with The Associated Press on Wednesday, Paulson rules out a second stimulus package for now. He says the turmoil that has gripped Wall Street has now eased somewhat. Paulson says he thinks "we're closer to the end of this than the beginning."