President Obama sounds optimistic note on economy, citing 'glimmers of hope'

WASHINGTON - President Obama took heart Friday from "glimmers of hope" in the U.S. economy, but lamented that too many Americans are still feeling extreme financial hardship.

"The economy is still under severe stress, and obviously during these holidays we have to keep in mind that whatever we do ultimately has to translate into economic growth and jobs and rising income for the American people," Obama said as he convened his economic team.

"And right now we're still seeing a lot of job losses; a lot of hardship; people finding themselves in very difficult situations either because they've lost their home, they've seen their savings deteriorate and they're still at risk of losing their job," he added.

But, for the second straight day, Obama and his top aides spoke somewhat optimistically. The rate of Americans losing their jobs has slowed, tax cuts are beginning to take effect and the financial markets are showing upward trends.
"What you're starting to see is glimmers of hope across the economy," Obama said on an abbreviated workday at the White House to mark the Good Friday holiday.

"We have always been very cautious about prognosticating, and that's not going to change just because it's Easter," he said.
On Thursday, chief White House economic adviser Lawrence Summers boasted that the economic "free fall" was over.

The federal deficit, however, is one economic indicator that continues to climb to unexpected and unprecedented levels.
The budget deficit increased by $192.3 billion last month, closing in on the $1 trillion mark, the Treasury Department reported. Economists had projected that last month's deficit projection would come in at about $150 billion.

The federal deficit now totals $956.8 billion since the start of the fiscal year last October. The Obama administration projects the deficit for the entire fiscal year at $1.75 trillion, but last month's unexpected spike may require White House bean counters to reconsider that estimate.

The federal bailouts for Wall Street and the auto industry, along with the stimulus package, are blamed for the runaway deficits.

The deficit will be under further strain when Congress approves another $83.4 billion to fund military operations in Afghanistan, Pakistan and Iraq.

Obama requested the money on Thursday in a message to Congress.