Paulson: U.S. long-term economic fundmentals sound

WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson on Tuesday said that the long-term fundamentals of the U.S. economy were sound, but that it would take some time to move past the downturn in the housing market.

"Our long-term economic fundamentals are strong. But, of course, as we all know, the economy has slowed down quite materially," Paulson told an American Bankers Association conference.

"The housing correction continues to pose the biggest downside risk," he said. "The housing data that has come out over the last several weeks confirms the views held by a number of forecasters that this correction will take some time to play out."

(Reporting by Tim Ahmann; Editing by Theodore d'Afflisio)