With the U.S. Department of Labor set to release unemployment figures tomorrow that some economist believe will show an increase in the percentage of Americans out of work, it’s no wonder Hotline reports, “Christina Romer, chairwoman of Pres. Obama’s Council of Economic Advisers, has decided to resign, according to a source familiar with her plans.”
Reporter Kirk Victor’s source reports:
“She is ostensibly the chief economic adviser, but she doesn’t seem to be playing that role,” the source said. The WH has been pounded for its faulty forecast that unemployment would not top 8% after its economic stimulus proposal passed.
Instead, the jobless rate is 9.5%, after exceeding 10% last year. It was “a horribly inaccurate forecast,” said Bert Ely, a banking consultant. “You have to wonder why Summers isn’t the one that should be taking the fall. But Larry is a pretty good bureaucratic infighter.”
According to a July 15 Wall Street Journal article, in fact, “today there are 700,000 fewer jobs than Ms. Romer predicted we would have if we had done nothing at all.”
Wonder if Dr. Romer is being forced out so the president can bring on economists who can make a better assessment of the impact of his policies.