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Paulson denies US economy in recession

US Treasury Secretary Henry Paulson said Saturday in Tokyo that the US economy is not in recession and showed confidence about the long-term health of the world’s largest economy.

“If you’re growing, you are not in recession,” Paulson told a press conference in Tokyo after a one-day meeting of finance ministers and central bank chiefs from the Group of Seven leading industrialized countries. Paulson noted that the US economy is expected to at a slower pace in the short term. The global financial markets have been in turmoil as fears of a possible US economic recession continued with a series of defaults on US subprime mortgages. To ease impact of the subprime crisis, the US Federal Reserve recently twice cut its key rate from 5.25% to 3.0% and the US congress has passed a fiscal stimulus package. (