Speaking in an interview on Bloomberg Radio, Treasury Secretary Henry Paulson said he expects the U.S. economy to perform well once the turmoil subsides.
Frozen credit markets have exacted a toll on the real economy, Paulson said, adding that while work has been done to limit the number of home foreclosures, they are still too high.
When asked about hedge funds, the treasury secretary said the focus is currently on financial institutions.
Paulson also said the rescue plan being adopted by the U.S. government will allow banks to access capital without the unwanted stigma of asking for liquidity in times of low confidence.
Paulson added the Treasury will continue to buy troubled assets.
By Stephen Huebl and edited by Nancy Girgis
©CEP News Ltd. 2008