Obama yesterday announced his action plan for job creation: $ 447bn in tax cuts and increased spending to stimulate the economy. The message was transmitted with American and European markets closed, and therefore today's meeting will receive the news in a positive way ... but this proposal is only a proposal and must be approved in Congress and Senate in case of being really complicated.
The proposed program includes increased spending on infrastructure projects, increased subsidies and reductions in payroll tax, which applies to workers and small businesses. Tax cuts account for nearly half the volume of the entire program. At the end of his speech, the President said "Economic recovery depends on Washington, but the companies and workers." Supporting the need to take extra stimulation, last week increased the number of primary grant applications unemployment. The labor market continues to face serious difficulties, since in the last month the economy created almost no new jobs and the unemployment rate exceeds 9%. The number of applications increased in 2000 primaries, compared to the previous value to 414000, according to a report released yesterday.
Additionally, meet G7 finance ministers at a meeting that unless major surprise in the form of a coordinated media have virtually no impact on the markets.
In short, a market digested the short term a positive message of Obama, but with Europe to be opened in negative output Greece euro a possibility. Session least to most and very tight spreads the peripheral environment of uncertainty that is breathed.
Several hours before Obama's speech, the Federal Reserve chairman, Ben Bernanke said the central bank's next meeting will discuss the tools that could be used to "stimulate economic growth, provided the maintenance of price stability . "Bernanke also noted that" two main reasons for economic creciminto as low as the fall in the housing market and volatility in financial markets. "