Focusing US fiscal and monetary policy where it counts.
After last Friday’s disappointing non-farm payrolls, equity markets will view even more critically President Obama’s address to the nation on Thursday. The President is expected to concentrate on measures to help employment and also on measures associated with mortgage relief programs all aimed at helping distressed borrowers.
When he addressed the gathering at last month’s Fed symposium at Jackson Hole, Mr Bernanke spent relatively little time on monetary policy and more time on the economy’s difficulties and, in respect to the latter, identified two sets of adverse influences; those he called temporary (e.g., the rise in commodity prices and the supply chain disruption resulting from Japan’s earthquake) and those he called persistent which included the ‘very deep slump’ in the housing market as well as the stress throughout the banking system. More >