Economic Recovery Measures
CRFB board member Laura Tyson makes the argument for additional economic stimulus in a recent New York Times op-ed. At the same time she mirrors CRFB in also proposing that policymakers “should enact a credible multiyear plan now to stabilize the ratio of federal debt to gross domestic product gradually as the economy recovers.” Additionally, she renews her membership in CRFB’s “Announcement Effect Club” by arguing that announcing a credible plan now would ease capital market concerns.
The FDIC has just released its Quarterly Banking Profile (QBP) for the second quarter of 2010, showing improvement in bank balance sheets since last quarter and at the same point last year.
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.
The Obama Administration held a conference yesterday discussing how to fix federal housing programs, with the goal of submitting a comprehensive Fannie Mae and Freddie Mac reform proposal by January.
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.
CRFB has been calling for policymakers to set fiscal targets for some time. Apparently we haven’t been clear enough on what that means.
Unfortunately, some in Congress have put a bullseye on the few legislators courageous enough to offer ideas to reduce our mounting debt. The Hill today reports on leaders within the House Democratic caucus tearing into four junior members who were naïve enough to offer a measure to moderately reduce spending.
Yesterday morning, Richard Berner of Morgan Stanley, Simon Johnson of MIT, and Joel Naroff of Naroff Economic Advisors testified before the Senate Budget Committee on the state of the economy in the short-term and prospects down the road. All three displayed some concern about the vitality of the economy in the next few years, but they each focused on different aspects: the housing market, financial markets, and consumer spending, respectively.