February 14, 2008 Recession Looms…or not
Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson both stated today that the federal cut in rates and the economic stimulus plan could keep the economy out of a recession. Esentially Bernanke and Paulson predict that the economy could be “sluggish” for the first couple months of the year, but then pick up speed later in the year. You can read the CNNMoney article here.
Of course what is the cost of this economic package to stimulate the economy? In Utah it looks like the stimulus package will take $65 million from the state education fund. Some of this loss should be offset by increased sales tax revenue (to the tune of $30 million…seems a bit optimistic to me, but maybe not). A recent SL Trib article addresses this issue here.