Monday, December 7, 2009

Federal Reserve Chairman Ben S. Bernanke and President Obama are likely to stay in the forefront of economic news this week.

Bernanke addresses the Economic Club of Washington, days after he sat for a confirmation hearing for a second term as head of the central bank. While he is expected to be reconfirmed, his nomination faces public relations challenges, in part because Sen. Bernard Sanders (I-Vt.) has pledged to use procedural tactics to delay it.

The theme of Bernanke's speech will be frequently asked questions about the Federal Reserve -- the queries Bernanke gets most often about the financial crisis and the Fed's response.

President Obama makes a high-profile speech on economic policy at the Brookings Institution, where he may call for new funds to support job creation. Obama is considering whether to tap a portion of the government's $700 billion financial bailout to fund the effort.

Such a proposal could win fans in Congress, where some Democrats are concerned that the bailout package has done too much to benefit Wall Street and too little to benefit working Americans. But it could expose Obama to criticism that he is a profligate spender.

The international trade deficit -- a measure of how much the United States imports vs. how much it exports -- will be released. While it widened significantly in the last report, economists see hopeful signs that a lower dollar and a modest global economic recovery will boost exports by American companies.

The government is scheduled to release retail sales figures for November -- which could give a short but meaningful insight into holiday spending. October figures showed retail sales increasing, largely on new auto sales.

-- Zachary A. Goldfarb