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Archive for May, 2009

Fed Chief Bernanke Sees Signs of U.S. Economic Recovery

WASHINGTON — Ben S. Bernanke, the chairman of the Federal Reserve, said on Tuesday that the economic free fall of the last nine months was nearing an end and that the United States should begin a fragile recovery by the end of this year.

In his most upbeat assessment in a long time, Mr. Bernanke said a wide array of indicators, from consumer spending and home sales to a revival in the credit markets, now suggested that the economy was stabilizing.

Obama Targets Job Outsourcing

President Barack Obama promised sternly on Monday to crack down on companies “that ship jobs overseas” and duck U.S. taxes with offshore havens.

It won’t be easy. Democrats have been fighting — and losing — this battle since John F. Kennedy made a similar proposal in 1961.

The president’s plan would limit the ability of U.S. companies to defer paying U.S. taxes on overseas profits. At the same time, Obama would step up efforts to go after evaders who abuse offshore tax shelters.

“It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.,” Obama said Monday.

U.S. Economy Could Recover Much Sooner Than Expected

You’ve heard all the gloom and doom about this recession. Now here’s some good news: the economic recovery could happen much sooner—and be much stronger—than anyone thought possible. 

Though the latest economic data is still giving a mixed picture, a small but growing group of economists is disputing the idea that the recession will drag on for months and that the rebound will be as weak as those following the the 1991 and 2001 downturns.

Even the Federal Reserve is signaling some optimism. After its regular two-day policy meeting ended on Wednesday, the central bank said that weakness in in the economy appeared to be slowing.