Bernanke Says Extending Bush’s Tax Cuts Would Maintain Economic Stimulus

By Scott Lanman and Ryan J. Donmoyer

(Bloomberg, July 23, 2010) Federal Reserve Chairman Ben S. Bernanke said extending at least some of the tax cuts set to expire this year would help strengthen a U.S. economy still in need of stimulus and urged offsetting the move with increased revenue or lower spending.  “In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said yesterday under questioning from the House Financial Services Committee’s senior Republican. “There are many ways to do that. This is one way.”  While Democrats want to keep the 2001 and 2003 tax reductions passed during former President George W. Bush’s administration for families earning as much as $250,000, Republicans aim to continue the cuts for high-income people as well. Bernanke didn’t endorse either party’s position or recommend a time period for an extension.  Click here to read more…

Department Of Energy Releases New Report On Economic Impact Of Recovery Act Advanced Vehicle Investments

(DOE, July 14, 2010) – Ahead of President Obama’s trip to Holland, MI tomorrow for the official groundbreaking of the new Compact Power plant, the Department of Energy today released a new report on the economic impact of Recovery Act investments in advanced batteries and vehicles.  The report, “Recovery Act Investments: Transforming America’s Transportation Sector,” documents how Recovery Act funds are being matched with private capital to create new jobs, construct new plants, add new manufacturing lines, install electric vehicle charging stations across the country and help build the emerging domestic electric vehicle industry from the ground up.  Click here to read more…

Event In Waterloo, Iowa, To Demonstrate Railroad Diesel Emission Reduction Project Funded By Federal Recovery Act

(EPA, July 19, 2010) News media representatives and the public are invited to attend a July 21 event in Waterloo, Iowa, at which the Iowa Northern Railway Company will demonstrate the operation of a newly converted railroad “slug,” an energy-saving and diesel emission-reducing locomotive accessory. The Iowa Northern Railway Company, based in Cedar Rapids, was awarded $303,800 in funding last year from the American Recovery and Reinvestment Act’s Clean Diesel program to convert two locomotives into railroad slugs. The slugs were placed into operation this month. Unlike a locomotive, a slug has no diesel engine, but instead draws power generated by an attached diesel locomotive to run its own sets of traction motors. While increasing the locomotive’s pulling and braking power, a slug reduces overall diesel emissions and saves fuel.  Click here to read more…

Secretary Vilsack Highlights Impact Of Clean Energy Recovery Act Projects At “Recovery Summer” Event In Virginia

(USDA, July 15, 2010) Richmond, VA – Agriculture Secretary Tom Vilsack today visited a local company putting people to work and helping build a clean energy industry using a grant from the American Reinvestment and Recovery Act (Recovery Act). The visit was part of the Obama Administration’s “Recovery Summer” events being held by the President and several members of the Cabinet across the country this week to highlight the surge in Recovery Act projects underway across the country this summer. “The work happening here at Baker Equipment is a great example of the impact the Recovery Act dollars are having in cities and towns across the country, putting people to work and helping make rapid advances in emerging industries like clean energy,” said Vilsack. Click here to read more…

Stimulus vs. Austerity: The Perennial Debate

By Josh Burek

(The Christian Science Monitor, July 12, 2010) The Obama administration is at a fiscal crossroads. Should it pass another stimulus to avoid a damaging slump? Or should it follow Europe’s lead and begin to cut spending to bring long-term debt under control before it drags down the economy?  The choice it makes could have profound consequences on everything from the job market to the value of stocks, mortgage rates, and the price of milk. The president has no shortage of economic advisers on his payroll. But one other source to which he could turn for counsel is a pair of letters to the editor that appeared in “The Times” of London – in 1932, when the Great Depression was in full swing but just before the New Deal. Click here to read more…

Obama Talks Jobs And Stimulus Grants

By Louise Radnofsky

(Wall Street Journal, July 2, 2010) Alongside his remarks today on June’s anemic job numbers, President Barack Obama formally announced a new round of stimulus awards, before boarding Air Force One at Andrews Air Force Base to travel to West Virginia for the memorial service for Sen. Robert Byrd.  The 66 grants for broadband connections totaled $795 million and are expected to result in 5,000 new jobs, the White House said.  Since mid-June when the White House launched “Recovery Summer,” Obama and others, led by Vice President Joe Biden, have been adding stimulus project tours, ground-breakings or ribbon-cutting ceremonies to their summer travels. The White House website now also includes a new map pinpointing some of those projects (not to be confused with the Recovery Accountability and Transparency board’s map at Recovery.gov.) Click here to read more…

Fed’s Evans: Recovery In US ‘Definitely’ On

(iMarketNews, June 30, 2010) Chicago Federal Reserve President Charles Evans reiterated his belief Wednesday that the economic recovery in the United States is well established, despite some fears in the market that the country could be hit by a double-dip recession or a severe slowdown.  He also argued that the Fed’s accommodative monetary policy is appropriate, given the employment situation and the low risk of inflation in the near-term.  In an extended interview on CNBC, Evans said he still expects U.S. GDP to grow by about 3.5% in 2010. “I think what we are seeing at the moment is the way a moderate recovery likely proceeds … but I’m expecting growth to continue.”  ”The recovery is definitely on,” Evans declared, and while it will be moderate in nature, it is not “faltering.”  Click here to read more…

Hu Urges Caution On Stimulus Exits

By Shen Hong

(Wall Street Journal, June 27, 2010) Chinese President Hu Jintao called on the Group of 20 nations Sunday to exercise caution over the timing and intensity of exiting economic stimulus programs, as the world economic recovery remains nascent and fragile.  Mr. Hu’s remarks, made in an address at the G-20 summit in Toronto, came at a time when nations are divided over whether policy priorities should be placed on maintaining economic growth or cutting spending, a debate magnified by the ongoing euro-zone sovereign debt crisis.  As expected, Mr. Hu didn’t touch on sensitive topics such as China’s currency policy and instead focused on global themes ranging from sustainable development to free trade and poverty reduction.   But he stressed that China is committed to transforming its economy into a more consumption-led model, although he warned that the process will be long and complex.  Click here to read more…

Next Page »