http://www.cnbc.com/id/15839285

Obama Could Mull 2nd US Stimulus If Needed: Adviser

By: Reuters | 29 Jun 2009 | 01:59 AM ET

President Barack Obama could discuss a second stimulus package to boost the economy if needed, but at the moment no more new money looks necessary, a top White House adviser said on Sunday.

"Much of the stimulus is yet to come, and let's see how this works before talking about next steps," senior adviser David Axelrod told NBC Television's Meet the Press program.

"Let's see in the fall where we are, but right now we believe what we have done is adequate to the task. If more is needed, we'll have that discussion."

Obama pushed through a $787 billion emergency stimulus bill after taking office in January, and the White House said at the time it hoped this move would keep unemployment under double-digit levels.

However, the economy has weakened by more than expected and the White House now warns the jobless rate could breach 10 percent in coming months, up from 9.4 percent in May, in the face of the toughest recession in decades.

"We have not broken the back of the recession," Axelrod said. "We are going to have to sail through some very difficult times here. But the question is are we moving in the right direction."

Current DateTime: 01:46:16 29 Jun 2009
"This recession that began last year is the worst that we've had in generations, and so unemployment is higher that be any of us would like. But to suggest that it wouldn't have gone higher had we not done the things we did, I think is totally misleading," he said.

U.S. officials and private economists forecast a gradual resumption of growth in the second half of the year. But they warn that unemployment will continue to climb for a while, even after the recession has ended.

This has generated talk about a second stimulus package. Obama said during a press conference last week that it was too soon to say if this was the case.

Investors are wary of more government aid on top of a record U.S. budget deficit, and Republicans slam Democrat Obama for what they say is typical liberal tax and spending.

Copyright 2009 Reuters.