November 13, 2012 / 9:49 PM / 5 years ago

Treasury's Geithner warns against postponing fiscal crisis

WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner on Tuesday warned against extending all the U.S. tax breaks to give Washington more time to broker a deficit reduction deal, saying it would create more uncertainty in the markets.

U.S. Secretary of the Treasury Timothy Geithner (R) listens to Federal Reserve Chairman Ben Bernanke (L) at the Treasury Department for the meeting of the Financial Stability Oversight Council in Washington November 13, 2012. REUTERS/Gary Cameron

“It will leave a different source of uncertainty, which is what’s going to give people the incentive to come back and do something tough,” said Geithner at an event sponsored by The Wall Street Journal, in his first public comments on the looming fiscal crisis since U.S. President Barack Obama won re-election last week.

Seven weeks are left for the Obama administration and Congress to deal with the $600 billion worth of tax hikes and spending cuts that will kick in next year and may trigger a recession if Washington does nothing.

Reporting by Rachelle Younglai, Editing by Gary Crosse

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