COOK: “The Fed, through monetary policy, has stimulated the economy in an unprecedented manner. But there seems to be a limit to how much that can help and the spending stimulus is largely worn out. With another stimulus politically untenable now and monetary policy having done about as much as can be done, policymakers are in a pretty helpless situation.
With last month’s dismal unemployment report and economic-growth forecasts rapidly being revised downward, it is becoming increasingly clear that it is unlikely that economic growth will be sufficient to create meaningful job growth on a sustained basis through the 2012 election.
The odds of unemployment dropping much below 8.0 percent by Election Day are quite small. ”
[Read Charlie Cook’s “Owning It” at National Journal]