According to this CNN story. (HT to Steve Horwitz).
If Obama wants us to save then Obama should talk to Ben about raising the short term rates, otherwise Obama is ripping off workers with this pitch. But then, as Steve points, raising short term rates puts the whole Paradox of Thrift argument down the drain.
Is this a case of Larry Summers or Chris Romer being unable to reach Obama about the contradiction he implies, or is this a case of the economic team finally capitulating and preparing for a Fed rate hike? Has Ben forewarned these folks about a impending rate hike before we know about it?
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