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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (78947)	6/29/2010 4:59:25 PM
From: stockman_scott	Read Replies (1) \| Respond to of 149317

Obama Says Economy Hitting ‘Headwinds’ From Europe (Update2) By Julianna Goldman June 29 (Bloomberg) -- President Barack Obama said after meeting with Federal Reserve Chairman Ben S. Bernanke that the U.S. economy is strengthening even as it faces “headwinds” because of concerns about the European debt crisis. “We have seen some very positive trends in a number of sectors,” Obama said at the White House after a meeting with his economic advisers. “Unfortunately, because of the troubles we’ve seen in Europe, we’re now seeing some headwinds and skittishness and nervousness on the part of the markets,”. Bernanke, who joined the president for the daily economic briefing, said he and Obama talked about how the U.S. economy is being affected events in Europe, without elaborating. Obama returned June 27 from a summit of the Group of 20 nations, where leaders agreed on a target for advanced economies to at least halve deficits by 2013 and stabilize their debt-to- output ratios by 2016. Concerns about the global recovery have added to stress in the credit markets. Company debt offerings declined 3.8 percent last week to $38.6 billion, according to data compiled by Bloomberg. U.S. Treasuries are having their best year since 1995, returning 5 percent through June 24, according to Bank of America Merrill Lynch index data, as investors seek alternatives to Europe, where Greece and Spain had their credit ratings downgraded. EU Pledge The EU has pledged about $1 trillion to reassure the markets and backstop the euro, which has fallen 14 percent against the dollar this year on concerns that Greece’s debt crisis is spreading. “What’s happening around the world in emerging markets, in Europe, affects us here in the United States, and it’s important for us to take that global perspective as we discuss the economy,” Bernanke said. Also attending today’s meeting were Treasury Secretary Timothy Geithner, Lawrence Summers, chairman of Obama’s National Economic Council, budget director Peter Orszag and Fed Governor Donald Kohn. While there remains work to do to on the U.S. recovery, Obama said he and Bernanke share “the view that the economy is strengthening, that we are into recovery.” Obama said that in the U.S., there is “great concern about the 8 million jobs that were lost” since the recession began in December 2007. Election Issues Economic growth, jobs and mounting government debt will be among the top issues in November’s congressional elections, with the unemployment rate at 9.7 percent and polls showing voters pessimistic about the recovery. The Conference Board’s confidence index slumped to 52.9 this month from a revised 62.7 in May, figures from the New York-based private research group showed today. The median forecast called for a decline to 62.5, and the gauge was lower than all projections in a Bloomberg News survey of 71 economists. While the U.S. has created jobs every month this year, companies in May added the fewest number of workers in four months. Obama is urging Congress to act on measures to boost lending and give tax breaks to small businesses to encourage employment. Financial Regulation Obama also said winning passage of sweeping legislation to overhaul financial regulations is vital to continued economic stability. “Not only will completion of the financial regulatory reform bill provide some certainty to the markets, but it also ensures that consumers will be protected like never before,” Obama said. The death yesterday of West Virginia Democratic Senator Robert Byrd, and Wisconsin Democrat Russell Feingold’s refusal to back the final package mean Obama will need some Republican support to obtain the 60 votes necessary push the measure ahead. “I think there will be enough interest in moving reform forward, we will get this done,” Obama said. The administration’s effort suffered another blow today when Massachusetts Senator Scott Brown, a Republican who previously backed the regulatory-overhaul bill withdrew his support because House and Senate negotiators inserted a $19 billion fee on banks and hedge funds. That wasn’t in the Senate version of the bill, and the issue may be revisited by congressional negotiators. To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net Last Updated: June 29, 2010 13:40 EDT