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Wednesday, November 2, 2011

The Economy: Obama Also Leading from Behind

The Federal Reserve has revised downward its expectations regarding joblessness and expects that unemployment will only decline to some 8.6 percent by the end of 2012 from its current 9.1 percent. This is not happy news for Obama, who faces reelection next year. Obama, who also leads from behind regarding the economy, must surely be disappointed by the decision of the Fed’s policymaking board not to take new action to spur growth.

Fed Chairman Ben Bernanke is plainly not pleased by the level of cooperation he is receiving from others in Washington. As reported by The Washington Post (http://www.washingtonpost.com/business/economy/fed-sees-modest-economic-growth-wont-take-new-monetary-action/2011/11/02/gIQAlLtvfM_story.html?hpid=z2):

"Government policy more broadly appears to be on hold, with few prospects for a deeply divided Congress to take steps that would encourage job creation. Bernanke signaled his consternation with this inaction, saying, 'It would be helpful if we could get assistance from some other parts of the government to work with us to help create more jobs.'"

Is it only a "deeply divided Congress" which is unable "to take steps"? Or does the problem also entail a clueless president, now in campaign mode and busy playing the blame game?

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