203K New Jobs Could Prompt Fed Pullback

“Unemployment Falls to 5-Year Low” reports NYT: “The jobs picture brightened in November as hiring was stronger than expected and the unemployment rate fell to a 5-year low, data that increases the likelihood that the Federal Reserve will begin easing its stimulus efforts sooner, rather than later. Still, many observers cautioned the encouraging figures from the Labor Department Friday don’t necessarily mean the central bank will act when policy-makers meet later this month. A move early next year, they said, is the most likely scenario.”

“Not Enough” says OurFuture.org’s Robert Borosage: “The celebration should be muted. Jobs growth has now averaged about 194,000 jobs a month over the last year. At this rate, it will take five years to recover to pre-recession jobs levels. Both the percentage of the population employed and the percentage of the labor force available for employment remain below levels of a year ago. The economy is adding jobs, but not at the rate needed to climb out of the hole we are in. Over 20 million people remain in need of full time work. Long-term unemployment remains very high, still over 37% of the unemployed. Not surprisingly, wage growth remains low (2% for the year).”

Budget Deal Close, But Jobless Aid In Limbo

Budget negotiators “few billion apart” reports Politico: “…hurdles remain, as finding those few billion dollars is difficult in an already tight federal budget … House GOP leaders are already beginning to talk to other key Republican figures about selling revenue increases … In a move sure to infuriate Democrats, the House-Senate negotiators have all but settled on slicing billions of dollars from federal employees retirement plans…”

Deal would only replace fraction of sequester. Time: “The deal would also replace over $30 billion of the $109 billion in next year’s cuts contained in the budget sequester … The money would be split between military and domestic programs like Head Start and Meals on Wheels, addressing complaints that the sequester was a blunt instrument whose cuts should be more carefully targeted.”

Pelosi not insisting jobless aid extension be included in deal. The Hill: “Pelosi said the benefits should be extended before the end of the year and that she hoped it could be part of a budget deal. But she said it didn’t have to be included to win her support and that it could also be considered as separate legislation … Earlier on Thursday, Pelosi had said Democrats ‘can’t support a budget agreement that doesn’t include UI [unemployment insurance].’ … [but] Republicans have balked at a UI extension as part of the budget discussion.”

Some Dems criticize emerging deal for doing little on jobs. Bloomberg: “House Democrats yesterday held a news conference to complain that their priorities, including ending corporate tax breaks and infrastructure investments, were being left out of the discussions. Republican proposals ‘go after middle-income, middle-class taxpayers and leave the high-fliers alone,’ [Rep. Chris] Van Hollen said, citing a focus on increasing airline passenger fees instead of ending a corporate jet tax break. Democrats have urged negotiators to include a jobs package. ‘Important priorities are at risk of being left behind,’ Van Hollen said.”

Breakfast Sides

Bipartisan fast-track trade agreement advancing, but opposition remains, says NYT: “A congressional aide close to the negotiations said that both sides had made significant progress on reaching a fast-track deal … Senator Max Baucus, Democrat of Montana and chairman of the Senate Finance Committee, and Representative Dave Camp, Republican of Michigan and chairman of the House Ways and Means Committee, have been working on a deal for months. They are expected to bring forward a bill next week … the plan still faces several obstacles, including opposition from some Democrats and Republicans in the House. Aides doubted that the fast-track legislation would reach a floor vote this year…”

Anti-immigrant congresspeople panic over Boehner hire. The Hill: “Boehner this week announced he was bringing on Rebecca Tallent, a former chief of staff to Sen. John McCain (R-Ariz.) who has worked on multiple comprehensive proposals that would provide a path to citizenship for illegal immigrants … ‘[It] adds up to the message that they’re at least setting the stage to be able to bring some type of immigration through this House with some kind of strategy … Any kind of initiative like that would split our conference,’ [Rep. Steve] King said.”

“Liberal coalition” pressures congresspeople to back away from Third Way column. NYT: “Mark Bergman, a spokesman for Representative Allyson Schwartz, Democrat of Pennsylvania, said she ‘read the op-ed, thought it was outrageous, disagrees strongly and told Third Way that.’ … Representative Joseph Crowley of New York, an honorary Third Way co-chairman, was also disturbed by the article, said his spokeswoman, Courtney Gidner … the liberal blog Daily Kos announced that it would endorse and raise money only for candidates who promised not to join Third Way.”

“Senate to move quickly on nominations” reports Politico: “…over the next two weeks … Senate leadership is aiming to confirm three judges to the D.C. Circuit Court of Appeals as well as a trio of crucial executive nominations before Dec. 20, Democratic aides said. The nominees that top Democrats are racing to approve are: Janet Yellen to lead the Federal Reserve, Jeh Johnson to lead the Department of Homeland Security, Rep. Mel Watt (D-N.C.) to oversee the Federal Housing Finance Agency and D.C. Circuit judicial nominees Patricia Millett, Nina Pillard and Robert Wilkins.”