Obama is in a bind, given his no-tax campaign pledge. But the recession, stimulus spending, and higher interest on national debt are ballooning federal deficits, perhaps to risky levels.
Higher US rates signal an economy on the mend, but they could also extend the housing slump and add to the federal debt.
The US may have headed off a deeper recession by investing hundreds of billions into major companies. But it drives up deficits and creates uncertainty among investors.
Economic activity in the US plunged 6.1 percent in the first quarter of this year, but free-fall in consumer spending stopped.
Why government spending plus easy money could pull US out of recession by year's end.
American spending has fallen further in the past six months than it has since 1974.
In a rare alignment, most of the world's big economies are expected to shrink.
Nobel laureate Paul Samuelson blames crisis partly on 'fiendish' financial engineering on Wall Street.
After the biggest monthly rise in consumer prices since 1991, the central bank can't ignore the risks of inflation.
Emerging markets are helping buoy global growth.