In the wake of Institutional Risk Analytics' comment last week about the lack of ideas inside the Obama Administration for resolving the economic mess, President Obama suggested new tax credit and infrastructure spending. Neither of these ideas is likely to become real, however, since the Republicans are expecting to take control of at least one house of the Congress in two month's time.
Over at the Federal Reserve Board, a different kind of policy gridlock persists. The Federal Open Market Committee thinks low interest rates are helping the economy, but the opposite is the case.
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