Speaking in an interview with Fox Business news on Monday evening, U.S. Treasury Secretary Henry Paulson said he did not believe that a second fiscal stimulus package was necessary and that the tax rebates mailed out yesterday would make a real difference to GDP.

With core inflation contained and economic fundamentals solid, he said the current economic situation in the United States was nothing like the stagflationary era of the 1970's.



Paulson did however acknowledge that rising food and oil prices were burdening consumers and expressed concerns that oil prices would continue increasing.

By Erik Kevin Franco and edited by Nancy Girgis