Recession likely for the U.S economy National Bureau of Economic Research President Bush argued
2008-01-09 15:53:37 (GMT) (Caymanmama.com - News)Dallas, TX - CaymanMama Press Release Distribution Service - Martin Feldstein, CEO and President of NBER (National Bureau of Economic Research) stated that the recession is quite likely to happen in the U.S economy. Averting it would pave the way for interest rate cuts and tax cuts by the Federal Reserve. NBER is an organization responsible for determining the recession and growth in the economy. Though the possibility was thought to be 50:50 until last week, but the decline in the manufacturing activity within a year as shown by the reports from Institute of Supply Management along with an increase in the unemployment rate within the last two years presented by Friday’s job reports for December increased this possibility.
Feldstein further said, “It’s not just clear that lower interest rates and monetary policy more generally will have enough traction because of conditions in the credit market.” He also emphasized on the need of having the fiscal stimulus as a back up. The remarks were presented on the similar day when President Bush argued about the resilience of the economy, while acknowledging the anxiousness of people regarding the economy. Although he did not mention about any economic stimulus package for short-term, but he did insist on making tax cuts permanent and that taxes should not be increased further. These tax cuts were passed in his parliament earlier, which may be expired when he will leave office.
Feldstein however is looking forward for the plan to be disclosed in State of the Union address. He insisted that the utmost requirement of the economy at this time is lower rate of interest and an additional fiscal stimulus.
CaymanMama.com - Press Release Distribution Service
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