U.S. Treasury's Paulson Says Housing Remains Biggest Challenge

In an interview with a Mexican television station, U.S. Treasury Secretary Henry Paulson said the biggest challenge facing the U.S. economy is an ailing housing sector, which he hopes will recover by the end of the year.

Paulson stressed that economic fundamentals in the United State, nevertheless, remained strong, adding that there is no easy solution to higher oil prices.

He also called for more output in crude oil.

By Erik Kevin Franco and edited by Stephen Huebl