United States Treasury Secretary Henry Paulson said Wednesday the worst of the credit crisis may have passed but acknowledged that rising gas prices will blunt the effect of 130 million economic stimulus checks.

He ruled out a second stimulus package for now.

In an interview with The Associated Press, Paulson said that the turmoil that has gripped Wall Street and took a turn for the worse yet again in March has eased somewhat.

"There's progress," he said. "I think we're closer to the end of this than the beginning."

A trio of crises - housing, credit and financial - has pushed the economy to the edge of a recession.

To help cushion the blow, the Bush administration and Congress speedily enacted a US$168 billion stimulus package of tax rebates for people and tax breaks for businesses.

The first batch of rebate payments started hitting bank accounts last week. The rebates range from US$600 to US$1,200, plus US$300 for each qualifying child.

"We will get some help from the stimulus," Paulson said in the interview.

"Later this year, I expect growth will pick up." Still, he acknowledged that the country was facing "tough times" as people struggle with soaring gasolene prices, higher medical costs and a weak jobs market.

AP