LONDON (Reuters) - The U.S. economy is going through a rough patch but, thanks to a government fiscal package worth some $150 billion, should start recovering as soon as the second quarter, a senior Treasury official said on Monday.
"The booster shot that's been given to the U.S. economy is going to boost consumer spending, is going to boost business investment -- that will lead to both higher growth and higher job creation," Robert Kimmitt, U.S. Deputy Treasury Secretary told Sky News.
"Many economists predict, and we agree, that we will see that upturn in the second quarter," he said.
Around a third of the $150 billion fiscal package directed at businesses and due to be delivered later this year aims to create more than 500,000 new jobs, Kimmitt said.
On top of the fiscal measures, the Federal Reserve has slashed U.S. interest rates in a bid to prevent the economy from slipping into recession. It is expected to do so again, perhaps by 3/4s of a point, later this month.
(Reporting by Jamie McGeever, editing by Mike Peacock)
