US Treasury Secretary, Henry Paulson, has echoed earlier comments from the Bank of England suggesting that the worst of the credit crunch is over.

Mr Paulson, who was one of New York's most powerful bankers before he became Treasury Secretary, told Associated Press that: "We're closer to the end of this than the beginning".  He added that he expected the US economy to improve as the year went on and a massive $168bn package of tax rebates took effect. 

Like the Bank of England in its latest Financial Stability Report, Mr Paulson argued that the credit crisis has eased since March.  He told Congress: "There's no doubt that things feel better today, by a lot, than they did in March.'