U.S. Treasury's Paulson: Downturn has 'further to go' (by William L. Watts)

LONDON (MarketWatch) -- The current economic downturn has "further to go," but U.S. growth should pick up by the end of 2008, U.S. Treasury Secretary Henry Paulson said in a television interview with BBC Newsnight to be broadcast later Thursday. According to the BBC, Paulson said a spike in oil prices, the credit crunch and a slumping housing market are contributing to a "tough period" for the economy. Paulson, who concluded a five-day trip to Russia, Germany and Britain, said he has found on his travels that inflation is a top concern for governments rather than the credit crunch, but offered no hint as to how he thought the Federal Reserve or other central banks should respond.