economic stimulus

The Scariest Part of Soaring Oil Prices: Investors' Fears

Friday's market sell-off may have been more about paranoia than about real risk. Some JPMorgan calculations indicate that the potential impact of rising oil prices on the economy may be less than most investors think. But the fear factor itself also can't be overlooked.

A Growing Role for Tourism in Sustainable Development

In a somewhat surprising report, The U.N. Environment Programme says one of the most promising green industries -- at least when it comes to creating economic growth, reducing poverty, fueling job creation and addressing major environmental challenges -- turns out to be tourism.

The Economic State of the Union: Already Creating Jobs

The economy and job creation will be the centerpiece of Obama's speech Tuesday night -- as they should be. But behind the pessimistic hand-wringing and political posturing a surprisingly strong rebound is building, and jobs are steadily being added.

Will the Economic Recovery Slide on $90 Oil?

Oil prices, up more than 25% since August, are testing the $90 per barrel level and appear to be headed higher -- into what the International Energy Agency calls 'a dangerous zone' for the global economy.

Obama to Name New Chief Economic Adviser Friday

President Barack Obama will likely name a new chief economic advisor to replace Lawrence Summers later this week as his administration looks for more effective ways to reduce an unemployment rate that remains near 10%, the Associated Press reported Wednesday.

Wall Street May Be a Casualty of Debt-Ceiling War

Debt and government spending are firmly at the top of the new Congress's agenda. Just the threat that the U.S. wouldn't pay its bills has traders worried and wondering if the U.S. could end up on the same chaotic economic path taken by Greece or Spain.

Oil Prices Gush to Two-Year High

Oil prices touched a two-year high Monday on tighter inventory and expectations that a U.S. economic growth spurt will boost demand this year. Some analysts predict prices could soon gush to $100 per barrel.

Job Growth Is Likely Next Year -- but How Much?

The good news is that economists generally expect employers to steadily add more workers in 2011, perhaps as many as 250,000 a month by year-end. However, with so many long-term unemployed returning to the market, the jobless rate could still outpace those new positions.

What Will Obama's Tax
Deal Do for Investors?

The biggest question many investors have about President Obama's compromise tax cut deal is how it will benefit the economy. But so far, there is little agreement on Wall Street about what the stimulative effects of the deal will be.mong the watchers on Wall Street about what the stimulative effects of the deal will be.

Pimco: The Tax Deal Will Boost Economic Growth

If the tax deal reached between congressional Republicans and President Obama is ratified, it most certainly will add to the budget deficit, but according to Pimco, which manages the world's largest bond fund, the stimulative measure will contribute much to economic growth.

Economy Still Growing Despite Jobs Report

Investors shouldn't overreact to the dismal November jobs report. Employers have historically held off on hiring when the stock market has been volatile, like last month.

OECD Cuts World Growth Outlook, Predicts 'Softspot'

The Organization for Economic Cooperation and Development (OECD) cut its prediction for economic growth in 2011, forecasting a "softspot" as governments withdraw stimulus packages. The OECD said the world economy will grow by 4.2% in 2011, compared with a previous forecast of 4.5%, Bloomberg News reported. Growth will rise to 4.6% in 2012.

Why the Fed's Stimulus Only Boosts Emerging Markets

When QE2 is complete, the Fed's bond purchases will have injected $1.7 trillion in liquidity into the markets since 2008 in an effort to boost corporate investment in new production and new jobs in the U.S. Instead, companies are taking cash raised here and investing it in emerging markets.

Budget Deficit Unexpectedly Narrowed in October

The U.S. government started the new fiscal year on the right foot, posting $140.4 billion deficit in October, the first month of the new fiscal year. That was substantially lower than the $148 billion deficit that had been forecast.

The High Price of Extending the Bush Tax Cuts

Before the GOP power surge on Tuesday, President Obama had steadfastly refused to consider extending the Bush tax cuts -- due to expire at the end of the year -- for America's wealthiest taxpayers. Now, he says he's willing to compromise.

Bernanke Defends QE2 Plan to Boost Economy

A day after the the Federal Reserve announced a second round of quantitative easing measures to stimulate the economy, Fed Chairman Ben Bernanke responded to critics of QE2 in a Washington Post op-ed that explained how the bond purchases will work, and why they won't spark inflation.

The Fed Tries Again to Buy Economic Growth

U.S. Federal Reserve today launched the second phase of its quantitative easing program, the so-called QE2, saying it will buy up to $600 billion more in long-term U.S. Treasury bonds to help stimulate a U.S. economy that's growing too slowly.

Hang Seng Rallies After Goldman's Bullish Prediction

Hong Kong's Hang Seng Index climbed 2% to 24,145 Wednesday -- a two-year high -- after Goldman Sachs predicted the index could reach 29,000 in the next year. That, combined with expectations of a new $500 billion round of U.S. economic stimulus, was good news for Asian markets.

Recovery Ahead? Small Businesses Boost Borrowing

A key index that measures small business lending rose 16% in September, its second consecutive month of double-digit increases. That rise in the Thomson Reuters/PayNet Small Business Lending Index is a strong signal that the U.S. economy is finally back on the road to recovery.

Third-Quarter GDP Rose to 2% on Consumer Spending

Consumer outlays increased at the best pace in about four years -- providing some hope that the expansion can continue. The rise from the second-quarter rate of 1.7% was in line with economists' expectations. Soaring imports were a big drag on the growth report.

2010 U.S. Budget Deficit Comes in Below Expectations

Investors received another sign Friday that the U.S. economy is continuing to heal: The 2010 U.S. budget deficit came in at a smaller-than-predicted $1.29 trillion. Though it was still the second-highest deficit on record, the numbers reflect growth in tax revenues, and thus in the economy.

An Anxious Fed: Economy Needs More Time

The minutes of the Fed Open Market Committee's Sept. 20-21 meeting show a second round of quantitative easing may be needed "before long," but the bankers delayed any moves to collect more data and figure how to best to communicate the policy.

IMF Cuts Outlook for World Economic Growth

The International Monetary Fund cut its forecast for world economic growth, saying that the economic recovery will slow as governments cut their budgets. The IMF cut its outlook for the U.S. economy to 2.2% growth in 2011, from a previous estimate of 2.9%.