The U.S. economy is stabilizing, but has a long way to go to recover from its current recession, Treasury Secretary Timothy Geithner said on Wednesday.

The national economy is showing some initial signs of stability. Confidence has improved, the financial system is starting to heal. Credit is starting to ease a bit, Geithner said. This is just the beginning, however we have a long way to go.

Geithner was speaking in Boston, where he announced the recipients of $1.5 billion in federal tax credits for community development projects.

(Reporting by Scott Malone, Editing by Chizu Nomiyama)