Paulson: time not right for second stimulus

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson said on Wednesday he did not believe the time was right to consider a second economic stimulus package and would watch the economy closely as tax rebate checks reach the American public.

In a television interview on CNN, Paulson said it was not time to take additional steps to aid the U.S. economy such as extending unemployment benefits, as called for by some Democrats in Congress.

"For now I'm saying let's watch the first one, watch it work, watch the economy closely and I'm not calling for a second stimulus package."

He said high gasoline prices were not something that could be resolved by short-term solutions such as a summer gas tax "holiday" and required longer term plans such as more alternative energy sources.

(Reporting by David Lawder)