President Obama: 'No fresh stimulus needed'
President Barack Obama has ruled out the need for a third fiscal stimulus package to revive the American economy even though he believes the US unemployment rate will rise above 10pc.
President Obama, speaking as figures from the US housing market showed a rise in existing home sales for a second month in a row, said that he believed it was "important to see how the economy evolves and how effective" the $787bn (£478bn) stimulus was.
The stimulus plan was passed in February and is aimed at reviving the US economy through tax cuts and investment in infrastructure. It follows a $168bn package proposed by President George W. Bush which simply handed back money to consumers.
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President Obama, who has previously been accused of talking up the prospects of swift economic recovery in spite of gloomy data, appeared more pragmatic when he admitted that unemployment rise above 10pc, from its current 9.4pc, itself a 25-year high.
However, he failed to answer directly whether his main economic steward, Federal Reserve chairman Ben Bernanke, will be granted a third term when his current tenure expires in January.
Pointedly noting that all of the US's financial regulators had in some way failed by not predicting the financial crisis, the President said Mr Bernanke was doing a fine job.
The Fed chairman's fate is under increasing discussion in Washington circles, amid suggestions that President Obama may replace him with National Economic Council director Larry Summers.
Meanwhile, Mr Bernanke was yesterday chairing the first day of a two-day meeting of the Fed's Open Market Committee (FOMC), which is expected to maintain interest rates at 0 to 0.25pc when it releases its statement at 7.15pm UK time tonight.
The FOMC will have a clutch of fresh economic data to consider, not least a report from the National Association of Realtors which shows that existing home sales – as opposed to those of new homes – rose by 2.4pc to an annualised rate of 4.77m in May, up from 4.66m in April.
But of more concern is the price buyers are buying, with the median price for an existing home standing at $173,000 last month, down 16.8pc from $207,900 a year ago.
The stimulus plan was passed in February and is aimed at reviving the US economy through tax cuts and investment in infrastructure. It follows a $168bn package proposed by President George W. Bush which simply handed back money to consumers.
Related Articles
Strengthened Federal Reserve is key to Obama overhaul of US financial regulation
US Federal Reserve chairman Ben Bernanke predicts end to crisis this year
One Federal Reserve to rule them all
US Federal Reserve plans $1.15 trillion injection
Barack Obama: who will be the key economic players?
President Obama, who has previously been accused of talking up the prospects of swift economic recovery in spite of gloomy data, appeared more pragmatic when he admitted that unemployment rise above 10pc, from its current 9.4pc, itself a 25-year high.
However, he failed to answer directly whether his main economic steward, Federal Reserve chairman Ben Bernanke, will be granted a third term when his current tenure expires in January.
Pointedly noting that all of the US's financial regulators had in some way failed by not predicting the financial crisis, the President said Mr Bernanke was doing a fine job.
The Fed chairman's fate is under increasing discussion in Washington circles, amid suggestions that President Obama may replace him with National Economic Council director Larry Summers.
Meanwhile, Mr Bernanke was yesterday chairing the first day of a two-day meeting of the Fed's Open Market Committee (FOMC), which is expected to maintain interest rates at 0 to 0.25pc when it releases its statement at 7.15pm UK time tonight.
The FOMC will have a clutch of fresh economic data to consider, not least a report from the National Association of Realtors which shows that existing home sales – as opposed to those of new homes – rose by 2.4pc to an annualised rate of 4.77m in May, up from 4.66m in April.
But of more concern is the price buyers are buying, with the median price for an existing home standing at $173,000 last month, down 16.8pc from $207,900 a year ago.
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