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“We have made this progress at a time when our economy has been facing some serious headwinds,” Obama said, noting high gasoline prices and Japan’s tsunami tragedy which had impacted US manufacturing.
“There will undoubtedly be more challenges ahead. The fact is, we are still making progress. That proves how resilient the American economy is, how resilient the American worker is,” Obama said in Indianapolis.
Obama delivered his remarks in a hybrid auto transmission factory in Indiana, to make the point that current deficit cutting measures and budget squeezes should not halt investment on new green energy technologies.
Separately, the outlines of a deal that would allow the US to avert a debt default emerged on Thursday as top Republican and Democratic lawmakers held their first meeting aimed at cutting the bloated US deficit.
Republicans edged toward a White House plan that would cut some spending now and set long-term deficit reduction targets, but said more difficult decisions on taxes and healthcare spending would have to wait until after the 2012 election.
A top Republican lawmaker, Paul Ryan, said there would be no immediate “grand slam” agreement on tackling the budget deficit, expected to reach $1.4tn this year and a major worry for Americans and investors.
If both parties can reach agreement on the framework for cutting the long-term US deficit, that could clear the path for a vote on raising the $14.3tn debt ceiling.