Poor numbers likely to spur Fed action

quantitative-easing

By Frank Quaratiello and Ira Kantor | The Boston Herald | September 8, 2012

The weak August jobs report will likely force the Federal Reserve to launch a third round of “quantitative easing,” basically creating new money to prop up the economy, even if the central bank doesn’t explicitly tip its hand at next week’s meeting.

The country’s unemployment rate dropped to 8.1 percent, but only 96,000 new jobs were added last month, 45,000 fewer than in July. The jobless rate declined mainly because 368,000 Americans gave up looking for work.

“If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans gave up looking for work entirely,” GOP presidential nominee Mitt Romney said, contrasting the jobs report to this week’s festive Democratic National Convention.

Economists said the lackluster numbers will make November’s election a tighter race, even after positive news from Europe sent the financial markets soaring Thursday. Read More

Today’s stocks surge not enough, Obama needs good jobs report

obama_dnc_speech_2012

By Ira Kantor | The Boston Herald | September 6, 2012

Soaring financial markets may bode well for President Obama’s confidence as he accepts his party’s presidential nomination tonight in North Carolina, but it will only take a poor jobs report for August to immediately pull the rug out of any economic momentum the commander in chief is feeling, economists said today.

The Standard & Poor’s 500 index hit its highest level since January 2008 today, while the Dow Jones Industrial Average and Nasdaq also saw surges after European Central Bank President Mario Draghi unveiled a new program to save the euro through the purchase of government bonds from struggling countries — a program that has no set limit on how much can be bought.

European markets also spiked in the wake of the ECB’s program announcement.

Yet Northeastern University economist Alan Clayton-Matthews said the ECB’s news would not have an impact on Europe’s real economy for “at least a couple of quarters,” making it too late to affect the U.S. economy in terms of job growth. Read More

Mitt Romney rocks prez on growth

romney rocks prez on growth

By Marie Szaniszlo | The Boston Herald | July 28, 2012

GOP presidential candidate Mitt Romney, knocked on his heels by Olympic gaffes overseas, was back on the offensive yesterday, blasting President Obama in the wake of a mediocre GDP report.

“After failing to meet with his jobs council for more than six months, President Obama is now ducking questions about this morning’s abysmal GDP report,” said Romney campaign spokesman Ryan Williams. “Americans deserve to know what it will take for President Obama to seriously address the issue of jobs and the economy. It has been nearly four years, and we are still waiting for an answer.”

Obama’s press secretary, Jay Carney, noted that the gross domestic product increased 1.5 percent in the second quarter, which, although down from 2 percent in the first quarter, still marked the 12th straight quarter of economic growth. Read More

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