Reuters - Larry Summers on stimulus, deficit

By Emily Kaiser

WASHINGTON (Reuters) - The Obama administration's $787 billion stimulus package is working despite rising U.S. unemployment and stabilizing the economy must take precedence over tackling the bloated deficit, a top White House economic adviser said on Friday.

Lawrence Summers, head of the National Economic Council, also defended President Barack Obama's "ambitious" policy agenda, saying addressing big issues such as health care and energy reform would lay the foundation for future prosperity.

Obama made creating or saving jobs the measure of success for the stimulus package he signed into law in February, so the White House has taken considerable heat as the U.S. unemployment rate hit a 26-year high of 9.5 percent in June.

Some critics have argued that rising joblessness shows the stimulus package is not working, while others contend the spending plan was too small to begin with and a second dose was needed.