Fiscal Cliff Standoff Said To Be Dragging Down U.S. Economy

The daily political machinations over what to do about the impending so-called fiscal cliff without actually coming to resolution is damaging the U.S. economy, according to the chief economist at a large financial institution. “Without fiscal drag, the U.S. economy would be headed for a growth trajectory in the 3-4 percent range in 2013,” says Craig Alexander, chief economist at TD Economics, an affiliate of TD Bank. “The worst of the consumer deleveraging cycle and its dampening effect on economic growth appear to be over. But just as the private sector is set to provide a welcomed tailwind to the economy, it will be met with worsening cross winds from public sector restraint.” Alexander acknowledges that the result is likely … Continue reading