Traders work on the floor of the New York Stock Exchange Jan. 2. Financial market participants will be keeping a close eye on upcoming deadlines affecting the U.S. debt ceiling, scheduled automatic budget cuts and federal funding.
Originally published on Fri January 11, 2013 2:39 pm
Maybe you were hoping you'd never hear the phrase "fiscal cliff" again after Congress passed legislation Jan. 1 to address that tax-break-expiration deadline.
Three more cliff-type deadlines are fast approaching. They involve: 1) raising the federal debt ceiling 2) modifying automatic, across-the-board spending cuts and 3) funding the government to avert a shutdown.
The deadlines all hit between Valentine's Day and Easter, which means new rounds of chaotic congressional negotiations may start up just after the Jan. 21 presidential inauguration parade ends.
U.S. employers added 155,000 jobs in December, a steady gain that shows hiring held up during the tense negotiations to resolve the fiscal cliff. But the unemployment rate remained at 7.8 percent last month.
Businesses complained that the uncertainty surrounding the "fiscal cliff" froze their decisions about hiring and expanding, which hurt the economy. Washington has now managed half a deal, which settles tax issues, at least for the time being. But has that removed enough uncertainty to boost some business hiring and investment?
The bill that prevented the nation from plunging over the fiscal cliff did more than just stop income tax increases and delay across-the-board spending cuts. It also included several provisions that tweaked Medicare and brought bigger changes to other health care programs.
By letting the House take up the Senate's fiscal cliff-dodging legislation that raises income tax rates on the wealthiest earners, Speaker John Boehner answered affirmatively a question that had been on many minds: Would he allow an up-or-down floor vote on a bill opposed by most fellow House Republicans?
Until the New Year's Day vote, Boehner had generally operated the House under what was known as the Hastert Rule. Named for former Speaker Dennis Hastert, it required a "majority of the majority" to support legislation before the speaker approved a floor vote.
Originally published on Wed January 2, 2013 4:08 pm
Though more big battles lie ahead in Washington, Wall Street is following the lead of financial markets around the world in giving a thumbs-up to the deal that kept the federal government from going completely over the so-called fiscal cliff.
We're sorry to start the first work day of 2013 on a negative note, but here goes:
Though the House voted 257-167 late Tuesday to OK legislation that kept the federal government from going over the so-called fiscal cliff — and stopped income taxes from rising for about 99 percent of Americans — lawmakers didn't reach agreement on other very divisive issues.
Missouri Senator Claire McCaskill, a Democrat, says that falling over the so-called fiscal cliff, the deep program cuts, and big tax increases set to hit January 1st wouldn’t be as dramatic as some people imagine.
NPR's coverage of President Obama's comments on the "fiscal cliff" talks
Update at 9:45 p.m. Deal Reached
Vice President Joe Biden was meeting late Monday with Senate Democrats to brief them on a proposed deal to stop sharp tax increases and spending cuts. A source told NPR the deal with congressional Democratic and Republican leaders includes a mix of both.
Well, here we are. It's New Year's Eve and with just hours to go before the end of the year and the arrival of the so-called fiscal cliff, Democrats and Republicans in Washington are still trying to strike a deal that heads off automatic increases in taxes, automatic deep spending cuts in a variety of programs and the automatic expiration of some jobless benefits.
Originally published on Sun December 30, 2012 6:36 pm
Senate negotiators failed to reach a deal Sunday on averting the "fiscal cliff," with the chamber adjourning for the night and only one day remaining before a package of spending cuts and tax increases automatically kicks in.
Majority Leader Harry Reid said the Senate will go back in session at 11 a.m. ET Monday. It's at least theoretically possible that negotiators might reach a deal and the Senate will have a package to vote on when it reconvenes Monday, meaning the measure could go to the House — where it may or may not come to the floor for a vote.
Originally published on Wed December 26, 2012 1:49 pm
President Obama is "cutting short" a vacation that he'd already said he would cut short. "See you next week," he told reporters last week before leaving for Hawaii. The president is now due back at the White House on Thursday, which is pretty much what was expected. His family will stay in Hawaii until after the New Year.
Senators are also coming back to Washington, but many aren't likely to get to the Capitol until Thursday evening.
Originally published on Tue December 18, 2012 11:35 am
It's not the cutting, it's the uncertainty.
That's the lament these days from governors and mayors awaiting the outcome of federal budget negotiations.
They know they're likely to take a hit; they just don't know how bad it's going to be.
"How do you budget for the unknown?" wonders Ed Long, the county executive in Fairfax County, Va. "Our worst fear is that by [the federal government] not acting, the economy is going to get worse going forward."
House Speaker John Boehner arrives at the White House on Thursday for a meeting with President Obama. The two men met again in private on Monday in an effort to reach a deal to avoid the "fiscal cliff."
Originally published on Tue December 18, 2012 11:48 am
If President Obama and House Speaker John Boehner's closed-door meetings aimed at solving the fiscal cliff crisis trouble anyone, you'd expect it to be the open-government watchdogs who routinely bark their outrage at public officials who work overtime to avoid public scrutiny.
Speaker of the House John Boehner (R-OH) leaves after his weekly news briefing at the U.S. Capitol Thursday. Boehner said negotiations with President Barack Obama to are stalled until the White House offers more federal budget spending cuts.
Originally published on Fri December 14, 2012 6:01 am
President Obama hosted House Speaker John Boehner today, spending nearly an hour together in which they reportedly discussed ways to avert the looming "fiscal cliff" of spending cuts and tax hikes that are due to strike at the end of 2012. Boehner left the White House at 6 p.m., ET, apparently without reaching a deal. As Politico reports, the Republican plans to return to his home state of Ohio this weekend.
Of the 535 members of Congress, not many appear to be in the loop about the "fiscal cliff" negotiations. That makes the rest nervous about having to vote on a bill on short notice despite misgivings about what's in it. But this is often how major deals get accomplished in Washington.
In these budget negotiations, the names Boehner and Obama come up most often — and virtually all the rest are on the outside looking in.
Among the loose ends that lawmakers would like to tie up before the end of this lame-duck session is the farm bill, which is made up mostly of crop subsidies and food stamps.
The last farm bill expired in September. The Senate has passed a new one; the House has not. Farm-state lawmakers are urging leaders to include a farm bill as part of any budget deal to avert year-end tax increases and spending cuts.
Originally published on Tue December 11, 2012 5:33 pm
The back and forth over the "fiscal cliff" continues: House Speaker John Boehner sent a new counterproposal to the White House on Tuesday that, according to a spokesman for the speaker, aims to "achieve tax and entitlement reform to solve our looming debt crisis and create more American jobs."
Tuesday's offer from Boehner follows his remarks on the House floor in which he called on President Obama to identify what spending cuts the White House will accept as part of a "balanced approach" toward a deal.
The Washington-based group Federal Funds Information for States reports defense spending cuts could total more than $1 Billion in Missouri if automatic budget cuts are not averted. Other programs in the state would be hit, too.
Originally published on Tue December 11, 2012 11:18 am
As we've said now several times, "the White House and congressional leaders continue to talk about taxes, spending cuts and how to avoid the so-called fiscal cliff that arrives at midnight Dec. 31 — when Bush-era tax cuts are set to expire and automatic spending cuts are set to go into effect."
As NPR and others cover the story, we're pointing to interesting reports and analyses. Here are some of the latest.
Budget negotiations between President Obama and Congressional leaders continue, but if those talks fail, Kansas will see a series of funding cuts that will affect the future of higher education, research, and military bases in the state.