Economy

The labor market is showing steady signs of improving with the monthly average of jobless claims falling to a new five-year low last week. 

First-time unemployment benefit applications increased by only 2,000 last week to a seasonally adjusted 336,000, another sign that layoffs are slowing, the Labor Department reported on Thursday.

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The Federal Reserve chairman said "too big to fail" banks are a "major issue" that must be addressed.

The Fed renewed its commitment to a policy of near-zero interest rates in an effort to spur on the economy.

People in the U.S. became more confident in the economy last week, Gallup found, inching back toward levels found before across-the-board spending cuts went into place this month.

Gallup said its economic confidence index grew to -14 last week – its highest reading since February, and up from -17 the week before.

The index's highest reading this year was -8 in early February, before the $85 billion in cuts known as sequestration started on March 1.

"The Dow Jones Industrial Average's 10 consecutive days of gains, the longest streak since 1996, likely contributed to the improvement last week in Americans' economic outlook," Gallup said. Read more...

Cyprus likely to turn down bailout because of bank tax.  Read more...

A Republican senator is already vowing to block President Obama's nominee to the Labor Department over his role in enforcing voters rights laws. 

Sen. David Vitter said Monday he would block the nomination of Thomas Perez to become Labor secretary until the Justice Department responds to his November 2011 letter that detailed "spotty enforcement" of voter laws in his home state of Louisiana. 

“Perez was greatly involved in the DOJ’s partisan full-court press to pressure Louisiana’s secretary of state to only enforce one side of the law — the side that specifically benefits the politics of the president and his administration at the expense of identity security of each and every Louisianian on the voter rolls," Vitter said. 

He specifically noted "his spotty work related to the New Black Panther case" and that his record should be met with "great suspicion."

Perez, who heads the DOJ’s Civil Rights Division, would replace former Labor Secretary Hilda Solis. She left the job in January. 

White House press secretary Jay Carney defended Perez's record following President Obama's announcement, arguing that a recent report by Justice's inspector general concluded "that voting rights enforcements, decisions made by leadership, were not due to improper racial or political considerations" and the the New Black Panther case was properly handled. 

Half of the states saw their unemployment rates rise in January, the Bureau of Labor Statistics said on Monday.

Eight states saw their jobless rate go down in the first month of the year, while 17 recorded no change. Washington, D.C., also saw its rate go up.

The economy added 119,000 jobs in January, BLS said in a revised estimate this month. Some 236,000 jobs were added in February, with the jobless rate falling to 7.7 percent. Read more...

A contentious bank tax could upend Europe's attempt to bail out Cyprus.

U.S. stock futures took a dive following the bailout controversy.

Europe's safety net is fraying under the strains of economic turmoil.

"London Whale" report puts Jamie Dimon back in the spotlight.

"No bid" government contracts are rising despite Obama criticism.

Both chambers of Congress are back to work this week as budget and spending battles continue.

Budgets pushed by both parties will hit House and Senate floors this week. Republicans will look to advance Rep. Paul Ryan’s (R-Wis.) plan, while Democrats mount support for a competing version from Sen. Patty Murray (D-Wash.). Both measures are expected to pass, but it remains to be seen how many party defections will take place. The Hill is tracking votes for both budgets here.

Meanwhile, the Senate will continue looking for a way forward on a continuing resolution to keep the government operating beyond March 27. The top Democrat and Republican on the Appropriations panel had struck a deal on a spending package, but the measure was bogged down by amendments on the floor last week, pushing work on it into Monday at least.

The average number of first-time jobless claims fell to their lowest level in five years last week, another sign of the labor market's slow but steady improvement. 

Those seeking unemployment benefits dropped by 10,000 to a seasonally adjusted 332,000 in the week that ended March 9, a reflection that businesses are laying off fewer workers even amid uncertain economic conditions, the Labor Department said Thursday.

The four-week moving average of claims, which provides a better trajectory of the direction of the job market, dropped by 2,750 to 346,750, the lowest level since March 2008.