A new year brings another chance to get it ride and that's something the US economy could use. Congress averted economic calamity on New Year's Day when lawmakers finally approved a plan to prevent huge tax increases. And spending cuts that would've pushed the world's largest economy over the fiscal cliff. After months of bickering in the deal resolves at least for now the question of whether Washington can overcome the deep ideological differences. To avoid harming the economy -- only now starting to pick up steam. Politicians will need to compromise on the list of issues this year according to Bob Brusca chief economist for fact and opinion economics. We still have that feeling to be a wet and they are supposed to be doing more intense the budget negotiations later on in the year. Middle of the road forecasts call for sluggish US growth between thirteen a survey by the National Association of Business Economists. -- growth is expected to be about 2%. Profligate prediction for 22 well. I just think he hadn't had 2013. You got to be very wary about the risks. And the things that you don't know I didn't by the end of the year the economy will be doing batter up might be doing an awful lot batter. But I think that's a lot of for the politicians and whether they're able to compromise. One reason the US economy may grow although sluggish -- is the Federal Reserve's extremely easy monetary policy. The -- has pledged to keep it loose until unemployment drops to six and a half percent. The jobless rate has been hovering slightly below 8% for months. And remains a stumbling block for the US economy another positive point for growth and when he thirteen. Housing is on the rebound. Any improvement in home prices will spill over into the wealth effect and that may increase consumer spending and job creation. The global picture is also improving and that may help lift the US economy. So we had this. Launch pad for the global economy and if everything goes well which is rarely the case. We could have the US China Japan and Europe. All rallying often very low bases. Which would be very exciting for the US economy and the global economy and when he thirteen. Many economists agree the fate of the US economy rests in Washington's hands so while the economy may stumble at the start of the year. Once the debt ceiling and budget issues are out of the way. The US stands to cross the finish line in much better shape.
A new year brings another chance to get it right, and that’s something the U.S. economy could use. ( Transcript )
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.