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Economic fears may dent Obama's re-election hopes

Business Times - 07 Jun 2011


Economic fears may dent Obama's re-election hopes

By LEON HADAR
WASHINGTON CORRESPONDENT

A TSUNAMI of bad economic news is raising new concerns about the prospects for the recovery of the US economy and for the re-election of US President Barack Obama.

While it may too early to consider the likelihood of a double-dip recession and for a Republican takeover of the White House in 2013, the mood on Wall Street and in Washington is certainly dipping. A negative private job report sent the Dow on its biggest fall in a year on Wednesday.

Indeed, figures released last Wednesday and showing a big drop in manufacturing employment was another indication that job growth continues to be slow. And while the US Labor Department announced the next day that the number of jobless benefit applications fell by 6,000 to a seasonally adjusted 422,000, very few economists were cheering. There was no change in the number of Americans who continued to receive unemployment cheques …