Paulson praises White House on economy

4/12/2008 WASHINGTON Paulson made the remarks this morning to the International Monetary Fund's policy-setting panel in Washington. Paulson tells the panel that a weak housing market, high energy prices and stress in financial markets "is penalizing U.S. economic growth."

An IMF economic outlook predicted a mild recession this year in the U.S. That is seen as raising the risks of a global recession to 1-in-4.

Paulson and Federal Reserve Chairman Ben Bernanke have been trying to reassure officials that U.S. policymakers are doing everything possible to loosen U.S. credit markets.

That would enable businesses and consumers to get loans more easily and help the economy revive.