economic stimulus

Oil prices fell Friday in Asia after the U.S. Labor Department reported that more unemployed workers applied for aid last week. Fears that the U.S. economic recovery could be slow is keeping oil investors wary.

President Barack Obama will likely name a new chief economic adviser 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.

Debt and government spending are firmly at the top of the new Congress's agenda. And 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.

The U.S. economy has strengthened, but not enough for the government to pare down its bond-buying program, according to the latest Fed minutes. In late 2010, investments rose and the job market improved -- but the housing market remained depressed.

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.

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.

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.

The deficit grew to a higher-than-expected $150.4 billion in November as government spending increased for the month. But November brought some bright spots as well: Federal revenue also grew at a higher rate in November, which confirms that the economy is expanding.

If the agreement between congressional Republicans and President Obama is ratified, Pimco, which manages the world's largest bond fund, says the stimulative measure will contribute much to economic growth -- and to the deficit.

The dismal November jobs report has commentators pointing derisively to a "jobless recovery." But investors shouldn't overreact: Employers have historically held off on hiring when the stock market has been volatile.