Thursday, December 15, 2011

Report: Deal near on spending bill, payroll tax cut extension

by Bill McBride on 12/15/2011 07:43:00 PM

Just more brinkmanship, but I'm pretty sure there will no significant government shutdown and the payroll tax cut will be extended.

From the WSJ: Congress Blinks on Shutdown

Congressional leaders—fearful of voters' wrath over Washington's bickering and brinkmanship—stepped back Thursday from a possible government shutdown, clearing the way for extending a payroll tax cut that is set to expire at year's end.
The spending bill compromise was expected to come to a final vote Friday, in time to avert a shutdown. ... A deal on the payroll tax compromise is expected to follow, although negotiators were still struggling to decide how to offset the cost ...
Weekly Initial Unemployment Claims decline to 366,000
Industrial Production decreased 0.2% in November, Capacity Utilization decreased
Empire State and Philly Fed Manufacturing Indexes show improvement in December