U.S.' Romer-sudden budget cuts could hit recovery

Immediate budget cuts in the United States could nip early signs of recovery in the bud, Senior White House advisor Christina Romer said on Thursday.

"The sensible way to address the current projected deficit is with a credible plan," Romer said at the Organisation for Economic Co-operation and Development 2010 Forum in Paris.

"It would be penny wise but pound foolish to deal with our long-term problems by significantly tightening fiscal policy immediately or foregoing additional spending to reduce unemployment," she said.

"Immediate fiscal contraction would inevitably nip the nascent economic recovery in the bud," she said. >>