While the Fed's decision to begin tapering in December drew the most media attention, the large turnover on the FOMC will have large policy ramifications going forward.
Recent positive economic data releases have materially increased the likelihood that the Fed will start tapering its quantitative easing program in December.
If the Democrats and Republicans cannot agree on a debt ceiling deal, a recession is a more likely outcome than a default in the near term.
Following a series of disappointing economic reports, the most recent employment report allayed fears that the moderate recovery in the US economy was faltering.
Barrack Obama's reelection will ensure that many of his first term initiatives will persist and that the Fed's QE policies will continue unabated.
Corporate profit growth in 2012 will continue to be positive, but changes to fiscal policy loom as a major risk.
The large number of thorny issues that need to be resolved ensures that the likelihood of a disappointing outcome from the EMU summit is higher than currently thought.
Despite hopes for an announcement of a new round of quantitative easing, Ben Bernanke is unlikely to make such an announcement at the upcoming Jackson Hole conference.
The intractability of both Republicans and Democrats on the fiscal cliff is increasing the likelihood of an impasse that could lead to a drop in output in the US economy.
Small businesses and state and local governments continue to drag down job growth in mid-2011.