Growth will return in the second half of 2009 and should reach 2.5-3.0% next year, he says.
Also on the wires, the Obama administration is expanding its mortgage relief program to include loans with a loan-to-value ratio of 125%. This should account for a significant chunk of homeowners who are “under water”, owing more on their homes than the homes are worth.
EUR/USD has stabilized at 1.4175 after comments from a G8 official suggesting China wants a discussion of a new reserve currency at this month’s summit.
