TARP funds to be used to create jobs and halve US deficit

| December 8, 2009 | 0 Comments
TARP funds to be used to create jobs and halve US deficit

US President Barack Obama has suggested using leftover funds from the Troubled Asset Relief Program (TARP) to create jobs and cut the US deficit.

Mr Obama told reporters that “TARP has turned out to be much cheaper than we had expected although not cheap,” and he is aiming to cut the country’s unemployment rate - which currently stands at 10%.

In August, the White House estimated that the TARP would cost around $340 billion but at the weekend, a Treasury Department official said the TARP will cost about $200 billion less than the original estimate.

Speaking at the Brookings Institution think tank today, the US President suggested that the surplus funds could be used to reduce the ballooning $1.4 trillion deficit and to help boost jobs.

Mr Obama plans to halve the deficit by the end of his first term and said boosting jobs is the best way to deal with the massive deficit.

“There are those who claim we have to choose between paying down our deficits on the one hand, and investing in job creation and economic growth on the other. But this is a false choice,” said the President at the conference.

Meanwhile, other proposals include additional money for infrastructure projects and rebates to consumers who made their homes more energy-efficient.

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