Week In Review

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Financial management and policy – and the President’s and Republicans’ contrasting approaches thereto – were this week’s top issues. Early in the week President Obama introduced his $3 trillion deficit reduction plan, which included proposals to raise taxes on the wealthiest income earners and bring about reforms to Medicare and Medicaid. The President’s move, which Republicans criticized as “class warfare,” signaled a notable shift to a more defiant political approach to Republicans, which served to reinvigorate his core base of Democratic and liberal supporters. On Wednesday we learned that Republican leaders in the House and Senate sent an unprecedented letter to Fed Chairman Ben Bernanke exerting political pressure on the Fed to “resist further extraordinary interventions in the U.S. economy.” Later in the week we discussed the President’s clean energy agenda and the huge hit it has taken since the failure of California solar company Solyndra.

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