Washington DC Water Cooler Chatter; Fed’s Hoenig and Fisher both say more stimulus not needed

Washington

· Geithner tells L Kudlow in CNBC interview that White House hopes to keep cap gains and dividend tax rates @ 20% - "We're going to make sure that we keep at 20 percent the existing rates on dividends and capital gains," Geithner said. "We think that's good policy.".  Geithner added that the economy is healing and that the recovery looks v encouraging – CNBC. http://www.cnbc.com//id/38138119

· Geithner – more on the CNBC interview – says the effective US corporate tax rate is about average w/the world; says will stay on as TSY Sec after the mid-terms if Obama still wants him; says wants to move forward w/Fannie and Freddie reform – CNBC   http://www.cnbc.com//id/38111488

· Washington reaches out to business community – Geithner tells major US execs that White House is a fan of business…embarks on “charm offensive” – Fox Business. http://www.foxbusiness.com/story/markets/industries/government/geithner-business-dont-hate/

· Fed’s Hoenig and Fisher both say more stimulus not needed – both said the US economy was unlikely to slid back into recession; Hoenig repeated his view that rates should climb to 1% – Bloomberg 

· Fed’s Fisher warns that Congressional uncertainty is hurting business – CNBC   http://www.cnbc.com//id/38127935

· Double Dip fears overblown says WSJ Heard – the much talked about ECRI index doesn’t really foresee a double dip while investor’s fears are being addressed (i.e. the European sov debt crisis); economy still growing (albeit at slower rates) while valuations are cheap – WSJ  http://online.wsj.com/article/SB10001424052748703636404575352893620811662.html?mod=ITP_moneyandinvesting_0

· TARP returns to the Treasury may decline b/c of softening bank stock prices (WSJ)  http://online.wsj.com/article/SB10001424052748703636404575353403065894666.html?mod=ITP_moneyandinvesting_2

· Treasuries – Bloomberg preview of Thurs’ auction size announcement – Bloomberg says the Treasury will announce Thurs that it will auction $69 billion of the maturities next week ($35 billion in 3-year notes, $21 billion in 10-year debt and $13 billion in 30-year bonds); this would mark the lowest amount of debt sold since Jul ’09 (Bloomberg)

· Byrd - West Virginia Gov. Manchin said he will consider running for the Senate seat left vacant by the death of Byrd if it's on the November ballot (WSJ)