Slower federal spending as a result of the waning stimulus bill might hamper U.S. growth this year, according to Harvard University economics professor Martin Feldstein. "These forms of stimulus will be missing in 2010, creating a serious cloud over the near-term economic outlook," Feldstein said. "It will be difficult to have a robust recovery as long as the residential and commercial real-estate markets are depressed and local banks around the country restrict their lending" because of default risk.

Related Summaries