US Treasury Secretary Tim Geithner said Tuesday the "spectacle" of the US debt ceiling debate damaged investor confidence even though the US economy remains solid. "In the United States, I think confidence here was absolutely very damaged by this spectacle they've seen in Washington of a significant number of elected officials in this country threatening default," Geithner said on ABC's "Good Morning America" program.
Geithner spoke after the US House of Representatives voted to support a package to raise the limit on US borrowing and enact at least $2.1 trillion in spending cuts over the next decade ahead of an August 2 deadline. The Senate is expected to approve the bill later Tuesday. "I think this is a good result, but a terrible process," Geithner told ABC. "As the world watched Congress step up to the edge of the abyss, it made them really wonder whether this place can work." "But this is a good deal. It's a good agreement." Geithner also denied rumors that he would resign once the budget ceiling deal was passed. "I haven't made that decision yet," he said. "I'll make that decision at the right moment.