Alister Bull
November 16, 2011

President Barack Obama’s top economic adviser said on Tuesday that the European debt crisis was the leading risk to the U.S. recovery, underlining a threat to the president’s re-election hopes in 2012.

Alan Krueger, chairman of the White House Council of Economic Advisers, also said that Obama’s $447 billion jobs bill would provide insurance against another shock to the economy, which could rebound strongly if confidence improved.

“If you were going to make a list of downside risks to the economy, the sovereign debt issues in Europe, the banking issues in Europe, are at the top of everybody’s list of identifiable threats,” he told a Wall Street Journal CEO Council, in which he answered questions from corporate bosses.

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