Political upheaval in Washington poses fresh challenges to the global economy

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From Fazle Rashid
NEW YORK, Nov 04: The US Fed Reserve moved yesterday to jolt the economy into recovery with fresh infusion of $600 billion into the banking system. Economy was the core issue in the midterm polls which left bruising mark on Democratic Party and President Obama's political agenda.
Interestingly Fed Reserve Chairman Ben Bernanke is a president Bush appointee. In supporting to pump in more money, Fed said it is acting because the recovery has been disappointly slow.
Republican swept into majority by attacking stimulus plan started by Bush and accelerated by Obama. Republicans say the "government is spinning out of control contributing to a dangerously escalating national debt". Fed is an independent body insulated from political influence. Fed said it would adjust the programme as needed to best foster maximum employment and price stability.
President Obama in his first post-election White House press conference yesterday pledged to work with the Congress saying he is open to discussion but cautioned that meetings of minds will not always be possible. Republican claimed a mandate to reverse Obama's agenda and President saw the result a cry of frustration that he has not moved fast enough. More conciliatory than contrite President Obama rejected suggestions that his policies has taken country into wrong direction.
The political upheaval in Washington will pose fresh challenges to the global economy, America's overseas trading partners worry. Despite pledges to curb government spending and huge budget deficit, Republicans are anxious to prevent the downhill slide in employment and flagging growth by pushing for an extension of tax cuts for the wealthiest Americans introduced during Bush administration.
The rest of the world is looking toward the United States and seeing no effective policy measures in bringing the economy back on track, an analyst said.
John Boehner who is tipped to be the next speaker of the House replacing Ms. Nancy Pelpsi has promised to reduce the size of the government, create jobs and change the way the Congress does business.