“Having ceded considerable ground to Republicans in the debt ceiling fight, President Obama set out Tuesday to reclaim the initiative on the economy, promising a new effort to spur job creation while seeking to position himself as a proven voice of reason in an era of ideological overreach,” the New York Times reports. “After being cloistered in Washington for a month haggling with Congressional leaders, Mr. Obama will embark on a bus tour of the Midwest the week of Aug. 15 — a chance to show his commitment to reviving the economy in a region of important electoral battlegrounds, and to turn the page from the tangled, often toxic, debate in the capital.”
In a Washington Post op-ed, Treasury Secretary Tim Geithner writes, "This week, I spoke to business leaders across the country. Not surprisingly, their relief that Congress has finally acted was tempered by concern about the damage caused to confidence by the months-long spectacle of threats of default. These business leaders, like many Americans, want to see Congress build on this moment of compromise."
"It is not enough for Congress to have prevented a disaster it brought on itself. Lawmakers should return in September prepared to act to strengthen the economy and get more Americans back to work. Doing so will help repair the damage this fractious debate inflicted on an economy that was already slowing, not just here but around the world."
“President Barack Obama’s signature on a bill raising the debt limit sealed a compromise that averted a U.S. default even as it did nothing to narrow the gulf between Republicans and Democrats over tax increases and spending cuts,” Bloomberg reports. “The measure postpones the thorniest fiscal dilemmas for later this year when the 2012 election campaign will intensify. A panel of lawmakers must push through a $1.5 trillion debt-reduction package by year’s end -- or risk automatic spending cuts across the government, including defense and Medicare.”
“The massive federal spending cuts that will follow the deficit reduction deal could further weaken a national economy that has been rapidly losing momentum, economists said,” the Boston Globe writes.