President Obama's chief economic adviser Larry Summers told NBC television that the US leader 'is pushing very hard for a very strong program of regulation... on a whole set of issues that have to do with credit card abuses'.

The new regulations will target, among other concerns, 'the way people have been deceived into paying extraordinarily high rates that they wouldn't have paid if they knew what they were getting themselves into,'Mr Summers said.

While there have been early signs of economic revival, 'we have got a long way to go,' Mr Summers said, adding that the administration is mindful that 'there are still substantial risks, that there are downside contingencies that we've got to prepare for, that there are issues in the global economy.'

His words echoed remarks made by President Obama in an interview published Sunday in which the US president cautioned that, encouraging signs notwithstanding, 'risks remain real and significant' and warrant 'aggressive action'.

'My hope is that by taking the steps we are taking today, from stabilizing our financial system to helping our auto industry restructure to become more competitive, it will help speed the day that the government can get out of the way and let the private sector do what it does best - innovate, create jobs, and grow the economy,' President Obama told Fortune magazine.

Warnings of continued economic turbulence come amid rising fears that the US economy could face defaults on billions of dollars in consumer credit card debt, inflicting another massive blow on the heels of the home mortgage crisis.

US banks are accused of having drastically increased interest rates and fees on credit card users, even though many of the credit companies have received federal assistance intended to encourage them to loosen lending.

'We're going to need a less leveraged economy,' Mr Summers said. 'That means... a much better regulated financial system, and that's what the president is already hard at work on.' -- AFP.