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Obama Talks US Economy, FX Markets Listen

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It's the big day. Tonight on national television, US President Barack Obama will take the stage and once again address the issues of economic growth in the world's largest economy. He will lay out an economic plan, estimated to be $300 billion and aimed at reviving consumer confidence and demand. But, will he succeed? Possibly. But, if the past is any indicator of the present, the announcement of the new stimulus plan will do wonders for major currencies against the US dollar.

What is expected in the September 8th speech?

More of the same.

Programs that were first touted during the 2009 $800 billion plan are expected to be renewed. In particular, extended employment benefits, which is anticipated to end this year, will likely be included along side more money for infrastructure spending. This includes funds to be set aside for road repair bridges and schools. This portion of the stimulus is likely to come against strong Republican opposition as party leaders cite problems the first time this was proposed. Due to increased bureaucracy, works and projects that were slated to start since the first stimulus package were considerably delayed – not really productive for the economy.

And then there are the businesses.

Read the article here - http://forexalliance.com/2011/09/obama-talks-economy-fx-markets-listen/

 

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Posted-In: Forex Events Global Econ #s Economics