Economy

The Senate will vote Thursday on both a Democratic and Republican plan, but neither plan is expected to pass.

The wealth gap between black and white families practically tripled over a quarter-century, a new study found.

The Institute on Assets and Social Policy found that the difference in wealth between white and black families grew from $85,000 in 1984 to $236,500 in 2009. 

That gap, the institute found, was driven mostly by structural issues like education levels, how long a family owned a home, pre-existing wealth and unemployment. 

In a 71-26 vote, the Senate on Wednesday confirmed Jack Lew to serve as the next Treasury secretary.

House Republicans mounted significant pressure on Federal Reserve Chairman Ben Bernanke Wednesday, criticizing his leadership of the agency.

The Senate Finance Committee cleared his nomination for Treasury secretary Tuesday in a 19-5 vote.

Former Rep. Ron Paul (R-Texas) may have retired from Congress, but that isn't stopping him from airing grievances about the Federal Reserve.

On Wednesday, Fed Chairman Ben Bernanke appeared before the House Financial Services Committee to deliver regular testimony. Paul previously used such events to harangue Bernanke on Fed policy, and in his retirement sought to do the next best thing. Minutes after the hearing began, Paul sent out a statement blasting Bernanke, detailing exactly how he would have grilled the policymaker if he were still in public office.

"While I certainly don't miss Congress, where politicians are constantly trying to limit Americans' freedom, during my time there I always enjoyed the opportunity to question the Federal Reserve Chairman about the damage the Fed’s policies do to the American economy," he said. "Today, unfortunately for the American people, Chairman Bernanke presented more failed policies that will only worsen our economic crisis at the expense of the vulnerable, while enriching entrenched allies and politicians."

Sequestration's impact differs community by community. Read more...

Consumer confidence jumped up in February, according to a new private sector estimate, as consumers recovered from the economic scare of the “fiscal cliff.”

The Conference Board’s consumer confidence index increased to 69.6 this month, up from a revised 58.4 in January. The February figure exceeded projections, and comes after the index had declined during the protracted fiscal-cliff debate.

Lynn Franco, the director of economic indicators at the Conference Board, chalked the increase up to consumers coming to terms with the expiration of the payroll tax cut, and said that people were becoming more confident about the current job market and business conditions.

The increase in consumer confidence also came at the same time reports found continuing signs of an improving housing market. In all, the confidence index for current conditions improved to 63.3, while the expectations index rose to 73.8. 

“Looking ahead, consumers are cautiously optimistic about the outlook for business and labor market conditions,” Franco said in a statement. “Income expectations, which had turned rather negative last month, have improved modestly.”

Senate Majority Leader Harry Reid (D-Nev.) said there was time for Republicans and Democrats to work together to avoid the sequester, which will happen Friday if Congress doesn’t act.

“Congress must replace these cuts — the so-called sequester — with a balanced approach to deficit reduction,” Reid said on the Senate floor Monday. "Senate Democrats would temporarily replace this harsh austerity with a combination of smart spending reductions and measures that close corporate tax loopholes, end wasteful subsidies and ask the wealthiest Americans to pay their fair share."

Addressing the exchange rate for China's currency would be a "top priority" for Jack Lew if he is confirmed as Treasury secretary, the nominee told a GOP lawmaker.

In a response to a series of written questions from Sen. Orrin Hatch (R-Utah), Lew reiterated the administration's stance on China currency, saying he would "press China" to move to a market-determined exchange rate.

"There has been some progress. … More progress, however, is needed," he wrote. "If confirmed, addressing China's exchange rate would be a top priority."