Treasury Secretary John Snow has said the US unemployment rate is "unacceptably
high" and may rise further before improving later this year.
He said the jobless rate could rise from the current 6.1 percent "to 6.2 or 6.3 percent before the higher growth rates begin to bring it down."
But Mr Snow said recovery prospects "are looking better and better."
He predicted the economy, which has been growing at just 2.1 percent for the past year, will accelerate to a 3.5 percent growth pace by the end of the year.
He said the US$350 billion tax cut enacted this year tax cut is poised to restore growth.
"I'm confident that the plan is going to have a serious impact on overall economic growth and job creation," he said at a forum in New York.
"We're starting to see an impact in the markets, as higher tax-adjusted returns on dividends and capital gains are factored into stock prices."
Eventually, Mr Snow said higher stock prices and better profits should mean more jobs, he said.
He also played down worries about the higher US trade deficit with the rest of the world.
"The current account deficit is something to be monitored for sure but nothing to be alarmed about," Mr Snow said.
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