While a great deal of attention has been given to Federal Reserve Chairman Ben Bernanke’s address in Jackson Hole, Wyoming on Friday, the remarks provided that day by his trans-Atlantic counterpart, European Central Bank President Jean-Claude Trichet, deserve equal, if not more, attention. Trichet highlighted the need for “ambitious” fiscal consolidation in promoting the global economic recovery.
At the Federal Reserve meetings in Jackson Hole, CRFB President Maya MacGuineas, commented on fiscal policy and the need for a credible debt reduction plan.
Watch a video of the interview below, or click here to go to CNBC.
Today, CRFB released a new policy paper showing a more probable fiscal outlook over the coming decade than what baseline budget projections would predict. Late last week, CBO released its updated current law budget and economic assumptions. While current law projections show debt continuing to grow over the next ten years, it is highly likely that actual deficits and debt will be much worse over both the medium- and long-term.
Credit-rating agency Standard & Poor’s has a message to U.S. policymakers: We are watching you on the growing national debt.
House Republican Leader John Boehner (R-OH) gave an economic speech today that was billed as setting the policy table if Republicans gain control of the House in November. If so, the table needs some more place settings.
Since economic assumptions have such a big effect on fiscal projections, we have compared their new assumptions in the Updated Budget and Economic Projections to their previous assumptions and to OMB's projections in the Mid-Session Review (click here for an analysis of the MSR).
In the wake of its fiscal crisis, Greece has taken sufficient definitive steps to reduce its budget deficit that it is in line to receive another $11.5 billion in aid from the EU, the Wall Street Journal reported yesterday. The nation's deficit has fallen by almost half -- 46 percent -- since the beginning of 2010, with spending also reduced by 17 percent compared with 2009.
Looks like even after 8 months, our Red Ink Rising report is still inspiring a significant amount of discussion. Take for example another fine work (published by Deloitte), also conveniently entitled Red Ink Rising.
Washington Empties Out – With both houses of Congress in recess and the president traveling, Washington feels deserted. The biggest news in DC is whether the Nats will sign Bryce Harper. Congress will return after Labor Day.
They’re Here (for a day) – The House did return briefly on Tuesday to approve $26.1 billion in state aid. The president signed the bill, which is fully offset, shortly afterwards.
Gone and Back – The Senate has left for its August recess, the House will return this week (for a day). Congress will be back in session after Labor Day for a frenetic month before adjourning again in October for final pre-election campaigning.
