It was announced today that the Fed is downgrading its economic expectations. Unemployment is expected to remain above 9 percent through 2011, and it is expected to be above 8 percent by the time the presidential election rolls around.
That could bode very poorly for Obama, and not just for all of the obvious reasons. Remember what Obama said about the economy in October of 2008? A refresher:
Speaking at an outdoor rally on a rainy and dreary day, Obama warned that the economy will continue to decline if new economic policies are not implemented. Borrowing Ronald Reagan's legendary campaign line – "are you better off than you were four years ago" – Obama said, "At the pace things are going right now you're going to have ask whether you're better off than you were four weeks ago."
Obama argued that, in last night's debate, McCain offered Bush economic policies that "led us into this mess in the first place." He charged that both Palin and McCain are trying to divert attention from the economy by attacking him.
"He and Governor Palin are out there saying all kinds of stuff," Obama said, adding, "I can take four more weeks of John McCain's attacks, but the American can't take four more years of John McCain's Bush policies."
Obama even released a video where he said the following:
At this defining moment in our history, the question is not 'are you better off than you were four years ago?' We all know the answer to that. The real question is, 'Will our country be better off four years from now? How will we lift our economy and retore America's place in the world?'
Maybe the economy will recover much quicker than expected, but if it doesn't, I suspect the President is going to get hammered by his own words.