FRIDAY’S BIG STORY:

Financial markets and policymakers alike will be waiting with bated breath on Friday morning for the Labor Department’s release on March unemployment. Four weeks ago, the department reported that unemployment in February dipped below 9 percent — to 8.9 percent — for the first time in close to two years, after sitting as high as 9.8 percent as recently as November. 

There have been some caveats to the recent rate decrease, which President Obama has touted as signs of continued economic progress. 

In fact, at least some of the drop in the rate is thanks to people actually giving up the hunt for employment and leaving the job market altogether. Ben Bernanke, the chairman of the Federal Reserve, and others have also said they expect the jobless rate to remain high through 2012. And a new poll from Gallup released Thursday found that unemployment was actually 10 percent in March, down from their measurement of 10.3 percent in February.

Federal spending on the housing sector increased in 2009 as multiple programs were funded to address the problems in the market created by the 2008 financial crisis, according to an analysis by Pew Charitable Trusts.

The federal government spent $244 billion on housing-related grants and tax expenditures likely to contain subsidies in fiscal year 2009, or about $2,085 per household, the majority focused on homeownership rather than rentals, according to Pew's project Subsidyscope, which includes about 10 years of information on subsidies in housing, transportation, energy, health and the financial bailout. 

The government also provided $4 billion in direct loans, and $688 billion in loan guarantees for housing-related activities, including guarantees of securities backed by loans already carrying a federal guarantee, the report said. 

A bipartisan group of House members has introduced legislation that would permanently and fully repeal the estate tax. 

On a conference call, Rep. Kevin Brady (R-Texas), a senior member of the House Ways and Means Committee, called the tax “one of the worst parts” of the current tax code and said repealing it would offer more certainty to family farms and small businesses across the country.

“Can you imagine working your whole life, only to see Uncle Sam swoop in at the end?” Brady asked. 

“The last thing our job creators need to worry about is being taxed again when they die,” Rep. Mike Ross of Arkansas, a Blue Dog Democrat and co-sponsor of the repeal, added on the call. 

It would be the first hike since December 2008; rates could go up half a point, according to a report.

House majority leader said “it’s time for Democrats to do what the American people are doing and tighten the belt."

Former Speaker Newt Gingrich insisted Thursday that Republicans will “fight to get $61 billion” in spending cuts this year.

House Republicans will move a massive bill winding down Fannie Mae and Freddie Mac within a few years before acting on several smaller, more targeted housing bills.

House Financial Services Chairman Spencer Bachus (R-Ala.) said Thursday that although Republicans on his committee are slated to mark up a package of eight small bills on April 5 at the subcommittee level, the GOP plans to a push a broad single bill first.

"The first bill to move will be the comprehensive one," he said, adding that he is targeting a committee vote on the broad measure in the beginning of May, after Congress returns from a two-week Easter break.

Democrats on the House Ways and Means Committee are calling on the Obama administration to use a recently released report as a springboard for more trade enforcement, including when it comes to China. 

In a letter to President Obama, the lawmakers complimented the administration on its handling of trade issues, but stressed that this year’s National Trade Estimate showed much more progress needed to be made. They added that the NTE, an annual report released Wednesday, detailed persistent barriers to American exports and services that have been put up by other countries and showed that a “hands-off” approach to trade simply does not work.

“It is now clear that trade barriers do not simply work themselves out over time, as proponents of that outdated approach have suggested,” the two congressmen wrote. “Rather, it is imperative that the U.S. government act vigorously and aggressively to address the trade barriers and defend U.S. trade rights and interests.”

The immediate fate of the 1099 repeal remained uncertain Thursday as Senate leaders consider whether to push through a House-passed bill that would clear the measure for President Obama's signature. 

The yearlong debate over the repeal could end as soon as tonight if Senate leaders opt to consider the House-passed measure, possibly under a unanimous consent agreement, and a possible Democratic alternative, although no votes are scheduled yet, according to a Republican aide. 

Senate Majority Leader Harry Reid (D-Nev.) said on Thursday morning that consideration of the 1099 repeal could come up this afternoon.