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UPDATE 1-Obama warns of economic ‘headwinds,’ sees euro surviving

by on July 31, 2012 12:36 am BST
 

Mon Jul 30, 2012 8:36pm EDT


(Reuters) – President Barack Obama warned
on Monday the U.S. economy would face continuing “headwinds”
over the next few months, with Europe’s debt crisis still posing
a challenge, but predicted the euro zone and its currency would
remain intact.

“I don’t think ultimately that the Europeans will let the
euro unravel but they are going to have to take some decisive
steps,” Obama said at a campaign fundraiser in New York.

“I am spending an enormous amount of time trying to work
with them, and (Treasury Secretary) Tim Geithner is trying to
work with them,” he said. “The sooner they take some decisive
action, the better off we’re going to be.”

Obama’s re-election bid is threatened by high U.S.
unemployment and a stumbling economy, which has felt shockwaves
from Europe’s debt troubles.

“Right now, the economy is still rough enough for enough
people that this is going to be a close election,” Obama said.
Polls show him in a dead heat with Republican challenger Mitt
Romney ahead of the Nov. 6 election.

U.S. economic growth slowed in the second quarter to a 1.5
percent annual rate, the weakest pace in a year, the Commerce
Department said on Friday.

“We’re going to have some continued headwinds over the next
several months,” Obama said. “Europe is still a challenge.”