August 25

By Roosevelt Institute |

daily-digest-150What you need to know to navigate today’s economic debate.

Obama to Nominate Bernanke to 2nd Term at Fed (NYT)
Obama will keep Bernanke Fed chairman because he had been bold and brilliant in his attempts to combat the financial crisis and the deep recession.

Economists React: Bernanke Reappointment Is ‘Good News’ (RealTime)
Economists, lawmakers, bloggers and others weigh in on President Obama’s decision to reappoint Fed Chairman Ben Bernanke.

Volcker Says Money-Market Funds Weaken U.S. Financial System (BLM)
Paul Volcker, the former Fed chairman and current economic adviser to Obama, said money-market mutual funds undermine the strength of the U.S. financial system and should be regulated more like banks.

Bank Case on Bonuses Shifts Focus to Lawyers (NYT)
Responding to questions posed by a federal judge, BoA and the SEC said the bank had relied on its outside lawyers to fill in the fine print.

Court Orders Federal Reserve to Disclose Emergency Loan Details (BLM)
The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.

New York Fed Names AFL-CIO Leader as Chairman of the Board (WP)
Denis M. Hughes, a New York labor leader, was named chair of NY Fed board of directors.

Why the Fed Should Be Given More Powers (FT)
Former deputy US Treasury secretary, Roger Altman, hopes that Congress does not allow superficial criticisms to kill the only effective approach to systemic regulation.

Regulators Examine Goldman’s Trade Tips (WSJ)
Securities regulators are examining weekly meetings at Goldman Sachs Group Inc. in which research analysts give tips to traders and then to big clients.

Double-Dippers: Predicting a W-Shaped Recovery (NYT)
In recent weeks, a small but vocal minority of economic experts have predicted a “W-shaped” recovery.

World Recovery is Not Yet in The Bag (FT)
It is not safe to assume that a recovery is now well under way and policy must remain stimulative for the foreseeable future.

New Deficit Projections Could Slow Obama’s Agenda (Reuters)
The White House and U.S. Congress will issue separate budget estimates that could slow President Obama’s domestic policy proposals as he faces increased skepticism among lawmakers.

Digg Dialogg with Timothy Geithner (WSJ)
Treasury Secretary Timothy Geithner shares his views on the financial crisis and economic policy, answering questions submitted and voted on by the Digg Community.

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