Financial Experts: Obama Is Clearing a Path

NEW YORK CITY-Packed with a dizzying array of policies, the Obama Administration’s stimulus package has been criticized by some for being too far-reaching and by others for not doing enough to revive the stagnant economy. But panelists at yesterday’s Dow Jones Indexes/STOXX Ltd.’s luncheon here said that the plan is an essential step towards economic revitalization.

Analyzing the administration’s actions in the past 64 days since the inauguration, the panel agreed that its initiatives may help stabilize unemployment rates, the housing and financial sectors, as well as encourage investment in energy efficiency and public infrastructure.

“The current administration has taken unprecedented actions to restart growth and help rebuild the economy and financial markets,” said Gus Faucher, director of macroeconomics for Moody’s Economy.com. The locally based economist presented a bleak picture of the current state of the economy, noting a 10% decline in retail sales, 11% drop in industrial production, 21% fall in house prices and cumulative job losses nearing 4.5 million. Faucher anticipates the unemployment rate to peak at close to 10% halfway through 2010, but stressed, “Without the stimulus plan, the unemployment rate would reach 12% in 2011.”