De International Herald Tribune bericht: 'In U.S., economy rivals Iraq as political issue
WASHINGTON: For the first time in four years, economic concerns are rivaling the war in Iraq as a top issue on the political agenda.
Sensing new political momentum, Democrats in Congress and on the presidential campaign trail are stepping up their criticism of President George W. Bush's handling of the economy and offering their own proposals.
And now that the malaise in housing and credit markets appears to be infecting the wider economy, the Federal Reserve could feel more political pressure from Democrats and Republicans alike than it has since Alan Greenspan, then the Fed chairman, incurred the wrath of the first President George Bush for not cutting rates faster in the early 1990s.
The Fed is all but certain to reduce interest rates at its next policy meeting on Sept. 18, but the big debate among economists is how much further and faster it cuts rates after that.
The Bush administration, on the defensive, rushed out with a message of calm reassurance, as a phalanx of top officials insisted that the economy remains poised for growth despite a government report that seemed to show that the broader economy is suffering from the mortgage meltdown.
"We're still confident that we're going to see high growth for next year," said Edward Lazear, chairman of Bush's Council of Economic Advisers. And Commerce Secretary Carlos Gutierrez warned that the prospect of tax increases would merely heighten economic uncertainty.
On Friday, a top House Democrat announced his intention to push for a sweeping revision of Bush's tax cuts that would favor middle-income families at the expense of the rich. "It will be the mother of all tax reforms," vowed Representative Charles Rangel, Democrat of New York, chairman of the House Ways and Means Committee.
Other Democrats are criticizing Bush's economic policies and pushing for more help for low-income people who face foreclosures after buying their houses with subprime mortgages, as well as for an expansion of government-financed health care and more money for education.
But perhaps the most important participant in the drama - the Federal Reserve - remained silent and will probably continue to say nothing until its next policy meeting in eight days.'
Lees verder: http://www.iht.com/articles/2007/09/09/business/rates.php
Geen opmerkingen:
Een reactie posten