U.S. Treasury Secretary Lew: Spending Cuts would hurt Economy

Only days after the debt ceiling and government shutdown showdown ended, Treasury Secretary Jack Lew promptly waded into the next fiscal fight: forced spending cuts known as the sequester.

He laid out the Obama administration’s case in an op-ed for The International New York Times that the failure to replace the across-the-board “blunt spending cuts” would hurt the U.S. economy.

“As independent economists and business leaders will tell you, these cuts have already slowed economic growth, just as the economy was getting traction,” he wrote. “The nonpartisan Congressional Budget Office has estimated that by the third quarter of next year, sequestration will have reduced real gross domestic product by as much as 1.2 percent, which means as many as 1.6 million fewer American jobs.”

CNN

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