Less Than Reassuring

 

As the following reports suggest, government officials (and others who are supposedly in the know) believe there's little reason to worry about the downside risks to the economy.

"CBO Doesn’t See Double-Dip Recession" (The Hill)

Congressional Budget Office Director Doug Elmendorf signaled Tuesday that the agency does not expect a double-dip recession despite a worrying May jobs report that showed unemployment creeping up to 9.1 percent.

“Our economic forecast from January had the United States on a path of modest growth for the next four to five years,” he said. “We are going to be releasing an update of the economic forecast. At this point I don’t expect large changes to this forecast.”

"Obama Not Worried About Double-Dip Recession" (CBS News)

President Obama said today he's concerned about last month's slow job growth, but he's not concerned about the economy sinking into another technical recession.

"I'm not concerned about a double-dip recession," Mr. Obama said at a joint press conference at the White House with German Chancellor Angela Merkel. "I am concerned the recovery we're on is not producing jobs as quickly as I'd like.

"FinSys Update: Fed's Fisher: US Grwth Shld Accelerate 2H'11" (Market New International)

Dallas Federal Reserve Bank President Richard Fisher Monday said U.S. growth should accelerate in the second half of the year, though recent sobering economic signals may spark central bank discussion about adjusting the speed at which the Fed eventually exits its extraordinarily accommodative monetary policy. "I don't believe personally we're going into a double dip," Fisher said, answering audience questions at a seminar hosted by Market News International. "I believe we're going to have accelerating growth going into the second half.

“Nightly Business Report for June 3, 2011" (PBS)

[Council of Economic Advisers Chairman Austan] Goolsbee: This is not a double dip recession. I don`t think the market is pricing that in. I think the fact that we`ve added a million jobs in the last six months looks nothing like a double dip recession. Most of the private forecasters are seeing a fairly strong rebound in the second half of the year.

"U.S. Double-Dip Recession Very Unlikely-Economists" (Reuters)

The U.S. economy is slowly healing and will avoid a relapse into recession, the American Bankers Association's economic advisory committee said on Wednesday.

The committee, which includes the chief economists from many of the biggest U.S. banks, said Europe's sovereign debt turmoil would inflict minimal damage on the U.S. economy, aside from trimming exports.

Feeling better now?

I thought not.

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