U.S. News

According to the Wall Street Journal, a new study found that firm-specific state and local government tax breaks intended to attract companies and boost employment offer little in the way of economic benefits to the regional economy outside of the targeted industry. The researchers found that counties using incentives to lure businesses saw employment rise by around 1,500 jobs on average in the targeted industry but had no impact on broader, countywide employment. WSJ

The New York Times reports that according to former Federal Reserve Chair Ben Bernanke, the Fed has enough alternate tools at its disposal – including mass bond-buying and promises to keep rates lower for longer – to largely compensate for its limited room to cut interest rates in the event of another downturn. Bernanke noted, however, that should the neutral interest rate continue to fall, a “moderate increase in the inflation target or significantly greater reliance on active fiscal policy for economic stabilization” may become necessary. NYT