REFILE-US economy improving; healthcare reform key-Orszag

(Corrects quote in paragraph 3 to "deficit-neutral")

NEW YORK, July 22 (Reuters) - The U.S. economy is no longer on the brink of disaster but recovery will be slow and the jobless rate will remain "stubbornly high" in coming quarters, White House Budget Director Peter Orszag said on Wednesday.

He also told a luncheon meeting at the Council on Foreign Relations that rising healthcare costs are the biggest threat to the U.S. fiscal future but added reform "is further along than it's been in decades."

He said President Barack Obama, who is pushing for a health care bill before Congress breaks for its August recess, would only sign "a deficit-neutral bill."

Orszag said, "The economy is no longer on the brink, but it is not yet the robust economy we desire," adding that "job losses may not be as severe, but job growth will not return for some time."

(Reporting by Steven C. Johnson; Editing by Diane Craft)