James Pethokoukis

Oh yeah, that was a lousy jobs report

June 6, 2011

My pal Tim Kane at Growthology lays it all out:

– The unemployment rate is now 9.1 percent, up from 8.8 percent two months ago. That’s important. Although research shows the U rate is more reliable than the payroll employment numbers over the long term, it might still suffer from a one month blip due to turnover in the survey sample. But a second increase in two months all but nails the coffin shut. By that I mean that the U.S. is experiencing if not a double recession then a historically stagnant recovery.

Withdrawal of Fed nominee sets bad precedent

June 6, 2011

By James Pethokoukis
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China to US: Forget debt ceiling, cut spending

June 6, 2011

If you listen to Treasury Secretary Timothy Geithner and the rest of Obama administration, failure to raise the debt ceiling by Aug. 2 risks “catastrophic economic and market consequences of a default crisis.

Not a (Peter) Diamond in the rough

June 6, 2011

The problem with the Federal Reserve is not that an “activist Keynesian” — in the words of the Club for Growth — like Peter Diamond can be appointed to such a powerful economic policymaking body. His views are, unfortunately, well within the mainstream of economic policymaking. The problem is that Diamond and the other Fed members really don’t matter. As one former Fed member said to me, “If you see someone from the Fed talking on TV and he’s doesn’t have a beard, feel free to ignore him.”