Treasury chief: High oil prices will prolong slowdown

By DAVID STRINGER • Associated Press • July 4, 2008 LONDON — U.S. Treasury Secretary Henry Paulson warned Thursday that rising oil prices are likely to prolong the world economic slowdown. Speaking at a London news conference, he said there will be no quick fixes to calm soaring oil prices which hit a trading record, above $145 a barrel, on Thursday. "I think that the oil prices are a strong head wind and at this level, they have got a high risk that they are going to prolong the slowdown," Paulson said, winding up a European tour. Paulson was holding talks on Thursday with British Treasury chief Alistair Darling and banking executives following meetings in Russia, Germany and others in Britain. British Prime Minister Gordon Brown, who met Paulson on Wednesday, told a parliamentary committee that he agreed that oil prices are... [read full story]