Deficit crisis: Obama challenges the Republicans

In this edition of Business Weekly we focus on the bitter political feud between Democrats and Republicans in the US over a solution for the country’s debt and fiscal problems.

President Barack Obama, pummelled by bad polls, tried to regain the political initiative by proposing a deficit-reduction plan that includes a tax on the most wealthy Americans.

Is this politically feasible or a mere PR stint ahead of the 2012 election campaign?

Host Stefan Grobe talks about this with Sarah Hewin, Senior Economist at Standard Chartered in London.

Also on the programme: the latest Federal Reserve meeting and S&P’s downgrade of Italy.

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