Paulson says the worst of the credit crisis is over

AP

The worst of America's credit crisis may have passed, Treasury Secretary Henry Paulson said yesterday, though he acknowledged rising gas prices will blunt the effect of 130 million economic stimulus cheques. He ruled out a second stimulus package for now. Mr. Paulson said the turmoil that has gripped Wall Street and that took a turn for the worse again in March has eased somewhat. "There's progress," he said. "I think we're closer to the end of this" than to the beginning. A prolonged housing slump, a severe credit crisis and soaring energy costs have pushed the economy to the edge of a recession. With surging oil costs and gasoline prices, Mr. Paulson acknowledged that pain at the pump would diminish the impact of the $168-billion (U.S.) stimulus package payments meant to give the economy a jump-start.