Feldstein: Cut Spending or Face the Music

Monday, July 27, 2009 2:52 PM

By: Julie Crawshaw

A combination of large future fiscal deficits and foreign lenders' reduced willingness to buy U.S. securities means the dollar will drop and interest rates will rise, says economist Martin Feldstein.

“Without a fall in the dollar and the resulting rise in net exports, a higher saving rate and reduced consumer spending could push the U.S. economy into a deep recession,â€