Obama adviser Romer, an academic economist who’s research favors tax cuts over government spending to boost economic growth, says that both government spending and tax cuts can be effective. She also sees monetary policy as having a critical role.
Asked to endorse Bernanke’s stewardship of the Fed, she dodged the question like a seasoned Washington pro, noting Fed independence, yada yada, bit offering no explicit endorsement. Bernanke’s term is up in 2010, I believe.
UPDATE: Romer added that if stimulus is enacted, the economy will turn the corner in Q3 or Q4. Careful with those types of pronouncements; it is hard to blame your predecessor if you spend a trillion dollars and give a timeline for recovery and then don’t deliver.
EUR/JPY is underpinned in afternoon trade as equitiesmaintain their strength, up 2% or better. The cross is now at 118.40 with the legs at 1.2890 and 91.85.
