The U.S. economy may prove more prone to deflation than the Federal Reserve acknowledges and that may present a reason to keep monetary policy loose, according to a model created by Wells Fargo Securities LLC.
Budget woes in Greece, Ireland, Portugal and Spain are “something to worry about” as the U.S. economy continues its climb out of recession, said Christina Romer , former chairman of President Barack Obama ’s Council of Economic Advisers.
On March 9, President Barack Obama flew to Petersburg, Virginia, to tour a Rolls-Royce aircraft engine plant. He’d been to Petersburg before as a candidate, when he stopped his campaign bus to grab lunch at a burger joint. That was in 2008, when he could still blame someone else for the misfortunes of the people he met inside.
President Barack Obama lost a second member of his economic team as economist Christina Romer decided to return to teaching on the eve of an employment report highlighting the administration’s struggle to spur job gains.
Federal Reserve officials may be “softening up the ground” for another round of asset purchases or another policy change when they meet tomorrow, said Christina Romer, former chairman of the White House Council of Economic Advisers.