03/16/2009 05:12 am ET | Updated May 25, 2011

Larry Summers: Economy Likely To Decline "For Some Time"

Feb. 13 (Bloomberg) -- President Barack Obama's top economic adviser said it will take a while for the fiscal stimulus and financial-rescue plan to have an impact, warning that the slump will probably continue "for some time."

"Lags are long with respect to policy, and I don't think we can offer the prospect that problems that were created over a very long time period," will be fixed in "a matter of months," Lawrence Summers, director of the White House's National Economic Council, said in an interview today. Still, he said the stimulus will help ensure the unemployment rate doesn't hit 10 percent.

Summers's remarks reflect private forecasters' expectation that the bulk of the impact of the $787 billion package of tax cuts and spending measures approved in the House today will come next year.

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