Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Goolsbee on the Slowdown in U.S. Economic Growth, Bernanke Concern Over S&P Rating

Economics / US Economy Apr 29, 2011 - 05:10 AM GMT

By: Bloomberg


Best Financial Markets Analysis ArticleAustan Goolsbee, chairman of the White House Council of Economic Advisers, spoke to Bloomberg TV's Hans Nichols about today's report showing the U.S. economy slowed more than forecast in Q1. Goolsbee said about the S&P's judgment about the U.S.'s triple A rating was "a data point" and he also said that 2011 and 2011 are "still looking fairly positive" for economic growth. Goolsbee appeared on Bloomberg Television's "Bottom Line."

Goolsbee on the slowdown in U.S. growth:

"It was an expected slowdown. The biggest driver was a reduction in government spending at the federal level, a big negative from defense spending. You saw Bernanke say yesterday and you see the private forecasters say they believe that to be transitory slowdown. Nobody likes a growth slowdown. We've got to have faster growth, but 2011 and 2012 are still looking fairly positive."

On the impact of the price of oil on the U.S. economy:

"We've been tried to analyze that because clearly, that has been hurting consumers. The fact that consumer spending did not fall much, actually came in well better than was expected at 2.7% growth, was a sign that the payroll tax cut of December may be offset in some significant way, whatever was coming by oil. That was at least a positive- it did not look like oil hitting consumers was the thing driving the slowdown."

On whether industrial output next quarter will be impacted by rising oil prices:

"We continue to monitor and try to see that. Overall, since the 1970's, when there were big GDP effects of oil prices, American businesses has got a lot less energy-intensive. Up or down, oil tend to have less impact on GDP growth than they did in the old days."

"In this business, if confidence had been hit by oil prices, you would have thought investment in equipment and software would have gone down but in fact that also came in a little better than expected. So that consumer spending and investment remain relatively strong was a good sign. But we have to keep an eye on the oil prices, for sure."

On jobless claims being up and whether we should be bracing for higher monthly unemployment numbers:

"For sure, you don't want to make too much of any one month of new claims because that is a highly variable statistic…There is a seasonal adjustment problem usually in these weeks. We have had a pretty sustained job market growth, adding jobs in the last two months have been very strong….There can be blips up and down. You shouldn't make too much negative until you see a longer trend than a week or two but we have to get the growth up."

On Bernanke's statements about ending QE2 in June:

"I'm not going to weigh in on their monetary policy decisions. They are independent. I thought Chairman Bernanke did a very effective job explaining what they were doing and where they saw the economy. I thought it very clear. Hopefully, he's not going to put the rest of us out of business."

On whether there is a relationship between the dollar and the price of oil:

"There are a lot of effects. Even Chairman Bernanke said the U.S. Treasury speaks to the government on dollar policy...It is clear that the dollar has gone down and oil prices have gone up. There are some who see some tie to that because the dollar price of oil would go up as the dollar went down and the oil producers might demand higher compensation in dollar currency. On the other hand, the flight to quality that occurred during the downturn and that flight back to normal would look like the dollar going down and the price of oil going up, but that wouldn't mean that one was causing the other. We want to be more circumspect rather than pointing the finger."

On Chairman Bernanke's concerns over the S&P rating:

"There is a call for action to address long-term deficit issues and bring ourselves in fiscal balance. I think the President is pretty committed to that. I thought the judgment in the S&P, which was re-affirming the AAA rating and was just saying something about their opinion about politics in the years to come, I don't know that the S&P has any special expertise on American politics more than you or anybody else does. That's why I thought it was, look, it's a data point, but don't make overly much about it."

Copyright © 2011 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


30 Apr 11, 11:00

"On Chairman Bernanke's concerns over the S&P rating:

"There is a call for action to address long-term deficit issues and bring ourselves in fiscal balance. I think the President is pretty committed to that."

You lie, Goolsbee. There is no committment to that in the White House or in Congress. Even the Paul Ryan plan grows the govt 2.8% annually for the next ten years. Some have the nerve to call that a draconian policy of "cuts." There are no cuts in any plan, just minor lowering of future expected increases in spending. The national debt continues to grow as we sleepwalk toward a soft default of devalued currency which is destroying the middle class of America.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in