electric smooth or diesel rough? - How Economy Fares in Summer Is Crucial

Reading - electric smooth or diesel rough? - How Economy Fares in Summer Is Crucial http://www.cnbc.com/id/3177...

Politically and economically, the next three months are critical for Barack Obama's presidency.

The pace of the economic recovery heading into the fall—electric smooth or diesel rough—will determine whether Obama can prod Congress on the key features of his agenda with momentum or from a defensive crouch.

Steady economic improvement that is perceptible to the American public would boost his political standing and give him the thrust to get Congress to complete action on his ambitious plans to overhaul health care, attack climate change and put the financial sector under greater government oversight.

But a stumbling recovery would erode Obama's currently high approval ratings, a source of much of his political power. At the same time, continued high unemployment might force Obama to ask Congress for another boost in spending to stimulate the economy—a political challenge that could delay if not undermine his other goals. So far there is little cause for cheer.

Since Obama signed the $787 billion economic stimulus bill in February, the economy has shed more than 2 million jobs and unemployment now stands at 9.5 percent, the highest in more than a quarter century.

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