His comments were widely seen by economists as part of a political bid to win support for his tax-cutting proposals. 2020Comparisons will inevitably be made between the 43rd president of the United States and the 41st, his father George Bush. But what is concerning the markets at the moment is that the man who defeated Al Gore could turn out to have as rough a ride as the 31st president, Herbert Hoover. In the five weeks since the bitterly contested election on November 7, the signs of an economic slowdown have multiplied to the point that some analysts fear the US is on the brink of a recession. The American economy does have significant strengths.
Unemployment is low and the budget is in surplus.
But a wave of corporate earnings disappointments has highlighted the fact that both companies and consumers are spending less. The fear of redundancy as well as record levels of consumer indebtedness have prompted much of the uncertainty. Such difficulties are going to make the government's stewardship of the economy one of its most pressing concerns. Mr Bush will be particularly keen not to take over just as a recession is about to start. Instead, the new president will be relying heavily on Alan Greenspan, chairman of the central bank, the Federal Reserve, to stimulate growth with cuts in interest rates.