Washington: US Treasury Secretary PaulO'Neill on February 5 said there are increasing signs that the seeds are sown for an economic recovery, with the recession expected to end by April.

"We saw more and more signs every day indicating that the seeds for a recovery are there," O'Neill said in remarks to a House Ways and Means Committee hearing on the Budget.

He cited a rebound in consumer confidence, strong auto sales, and a decline in weekly jobless claims.

Noting private economists' forecasts indicating the recession will end before April, O'Neill said, "We share the assessment."

He added that he is optimistic the economy will do even better than the White House forecast and that the US economy may grow at a 3.0-3.5 per cent rate as soon as the fourth quarter.

O'Neill repeated that a stimulus package is needed from Congress to ensure a quick return to faster growth, and called for accelerated tax cuts.

He explained that tax relief is needed to boost job creation, stating that "such relief will have minimal, or no, effect on long-term interest rates".

Faster growth will then restore Federal Budget surpluses, he said, adding that fiscal discipline in and of itself "will not guarantee Budget surpluses".

Charles Rangel, senior Democrat on the committee, countered that tax cuts should not be contemplated "at a time when we are in deficit", referring to projections for a modest Budget deficit in 2002.