Economy

Rep. Chris Van Hollen (D-Md.) on Thursday said the summer jobs program being advocated by the Congressional Black Caucus (CBC) for inclusion in extender legislation should be considered emergency spending.  

"I think the jobs situation in this country needs to be dealt with like an emergency," he told reporters. 

Unemployment claims fell slightly last week but the numbers need to accelerate for job growth to be sustained.

Weekly jobless claims were down 4,000 to 444,000 for the week ending May 8 after the previous week's revised figure of 448,000. The monthly average -- a slightly better gauge than the weekly number -- showed a decrease of 9,000 from the revised 459,500 average of the previous week, according to a Labor Department report released Thursday. 

While initial claims have dropped only 2.2 percent through the first four months of the year, they are 29 percent lower than a year ago. 

To begin making a dent in the 8 million jobs lost during the recession, weekly claims need to fall below 400,000 to show expanding job growth.

On top of that, job growth would need to average around 400,000 a month to chip away at the soaring 9.9 percent unemployment rate. In April, 290,000 jobs were added to the economy.

The advance number for seasonally-adjusted insured unemployment increased 12,000 while the four-week moving average was 14,750. 

An overwhelming majority of executives (84 percent) polled by consulting firm Deloitte are concerned that the economy will reverse course on its recovery and create a double-dip recession. 

The U.S. trade deficit hit a 15-month high in March behind rising prices of imported oil and demand picked up for goods from overseas, signals that the nation's economy is emerging from the protracted recession. 

The gap widened to $40.4 billion, up 2.5 percent in March, on track with economists' expectations, the biggest monthly deficit since December 2008, according to Commerce Department figures released Wednesday. 

The deficit got a positive reaction from Wall Street with the Dow Jones Industrial Average up about 1 percent this morning. 

Exports rose 3.2 percent to $147.9 billion, the highest level since October 2008 while imports were up 3.1 percent to $188.3 billion. Demand for crude oil imports reached their highest level since fall of 2008.

The deficit increased from a revised $39.4 billion in February, as March exports and imports were up over February's totals. March exports were $4.6 billion more than February's numbers and imports were up $5.6 billion. 

A 25.5 percent increase in crude oil shipments led to the rise in imports, up $22.3 billion in March, reflecting greater demand and higher prices. 

Economists are still keeping a close eye on the European debt crisis, which could dampen export forecasts. Greece only accounts for 0.2 percent of U.S. exports but combined, 16 European nations account for 15 percent of American exports, including Greece. 

The U.S. trade deficit with China widened to $16.9 billion in March, up 2.4 percent, the largest of any country. Congress and the Obama administration are considering trade sanctions if China doesn't revalue its currency to rise in value against the dollar. 

Former President Bill Clinton circulated an email on Monday asking supporters to help pay down his wife's 2008 presidential campaign bid. 

"Hillary's campaign still has a few vestiges of debt that I know she would like to see paid in full," his email states. "Will you reach out today to help Hillary this one last time?" 

The email provides a link to donate to the campaign, but does not say how much the Secretary of State owes. 

House Republican conference vice chair Cathy McMorris Rodgers (R-Wash.) on Monday said she strongly opposed the expanded relief package to Europe being discussed by the European Union and the International Monetary Fund. 

What was originally a $145 billion loan to Greece to better handle its debt as grown into a bailout costing approximately $1 trillion as more EU countries look vulnerable to default.  The congresswoman argues that the U.S. will be responsible for approximately one third of that reserve, or $321 billion, since it is IMF's main contributor.

Rep. Chaka Fattah (D-Penn.) on Friday wrote Treasury Secretary Timothy Geithner urging him to support the Greece bailout. 

Read more...

Consumer borrowing rose unexpectedly in March for the second time in three months as Americans spent more, fueling the nation's economic recovery. 

Debt increased $2 billion, at a 1 percent annual rate to $2.451 trillion, following a revised $6.2 billion decline in February, according to a report released by the Federal Reserve on Friday.  

Consumers continued to reduce their credit card debt, decreasing $3.2 billion or at an annual rate of 4.5 percent while non-revolving debt such as auto and student loans were up 4 percent in March, according to the report.  

Spending could continue to increase as people find jobs. The economy added 290,000 jobs in April, the largest increase in four years bolstered by a majority -- 231,000 -- coming in the federal sector. Unemployment rose slightly to 9.9 percent the numbers of people looking for work grew. 

Consumer spending grew by the fastest pace in three years during the first quarter, further signaling an economic recovery. 

"The European Union was formed to compete with the United States of America, economically," the House Republican Conference Chairman said.

President Barack Obama on Friday hailed the 290,000 jobs added to the economy in April as evidence his policies are working.