WASHINGTON (AFX) - Treasury Secretary Paul O'Neill said although an economic recovery is now under way, the US is just in the early stage of returning to its potential 3.0-3.5 pct GDP growth. "Our economy is only in the early stages of recovering to the 3.0-3.5 pct annual (GDP) growth rates that will create jobs for the 1.4 mln" who have lost employment during the recession, O'Neill said in prepared remarks to the Chicago Economic Club. "While our recovery is underway," O'Neill suggested that the Senate's failure to pass a fiscal stimulus package could slow the pace of the rebound. "There are significant obstacles imposed by government that slow its speed," he said. Although the Senate earlier this month failed to pass the stimulus package due to differences over its composition, O'Neill said the administration is still "hopeful the Senate will act soon to take up" the measure. The Secretary also noted that fourth quarter GDP growth -- originally estimated at 0.2 pct -- is expected to be adjusted upwards when revised figures are released Thursday. Turning to the administration's effort to tighten chief executive officers' accountability over corporate performance, O'Neill said some enforcement mechanism should be established to punish negligence. "If there's negligence, there should be some recourse," he said, without specifying what types of measures are being considered. O'Neill heads a panel, including Federal Reserve Chairman Alan Greenspan, that will issue recommendations to the President on boosting financial disclosure standards. Officials have said the panel is aiming to complete the recommendations by March, although this might slip. O'Neill explained that his goal is to hold CEOs accountable to fully inform investors about "the position of the company and what variables will determine the company's future success." O'Neill separately said the Treasury will begin releasing proposals to streamline the US tax code in coming weeks. Although short of a "blockbuster" tax reform effort, O'Neill said last week the initiative will, nonetheless, be important in helping reduce the complexity of compliance with tax rules. He noted estimates that taxpayers spend 70-125 bln usd a year on lawyers and accountants to comply with the tax code, which he reiterated "is an abomination."