Possible Fed candidate proposes hurricane relief plan

[Rose Siding]

FRANKFURT (Reuters) - Economic damage inflicted on the U.S. economy by Hurricane Katrina is likely to be modest, making the case for huge government aid questionable, said Glenn Hubbard, who is cited as a possible candidate to head the U.S. Federal Reserve.

In a Financial Times commentary on Monday, Hubbard said that federal fiscal aid should be used to cushion the blow to business and consumer confidence from a nasty regional shock.

But overall the short-term hit to unemployment and production is likely to be modest, offset by rebuilding over the coming year, and long-term damage to energy supplies also seems unlikely.

"Favorable underlying economic growth trends make the need for a national 'stimulus' package -- ironic given the substantial government spending probably of about 1 pct of GDP about to occur -- questionable," Hubbard wrote.

http://go.reuters.com/newsArticle.jhtml?type=politicsNews&storyID=9687426&src=rss/ElectionCoverage

...Except the trends weren't favorable. Weren't the numbers right before Katrina squishy?

This is the guy bush will listen to, because he's saying what he wants to hear.