New York (CNNMoney) – Uncle Sam cut spending in the fourth quarter of 2012, causing the U.S. economy to contract for the first time in more than three years.
Gross domestic product, the broadest measure of the nation's economic growth, contracted at an annual rate of 0.1% from October to December, the Commerce Department said Wednesday. It was the first quarterly contraction since the second quarter of 2009, amid the Great Recession.FULL STORY
(CNN) – The eleventh-hour compromise that avoided the fiscal cliff cannot be repeated when it comes time to raise the nation's debt ceiling, top lawmakers agreed Sunday.
But whether Republicans and Democrats can agree on how to raise the debt ceiling - specifically, whether or not to pair the increase with spending cuts - remains to be seen.
London (CNNMoney) – Credit rating agencies are likely to hold off passing judgment on the U.S. credit rating until they have a clearer picture about the fate of the debt ceiling and longer term plans to reduce borrowing.
The New Year fiscal cliff agreement between the White House and Congress raised taxes on the richest Americans but postponed much of the toughest political wrangling on automatic spending cuts for another two months.FULL STORY
New York (CNNMoney) - The fiscal cliff hasn't been reached yet, but it has already affected the nation's economy.
Economists say some key aspects of the economy - particularly those affecting consumer and business spending - have been weakened by worries about the fiscal cliff negotiations. But they say the damage is relatively small so far, well short of the new recession that so many feared. Improvements in home and auto sales, as well as job creation, have tempered the decline up to now.FULL STORY
(CNN) - Senate Republicans and Democrats remain far apart in their effort to avert a year-end combination of spending cuts and tax increases that could trigger a new recession, Majority Leader Harry Reid said Sunday.
"There's still significant distance between the two sides, but negotiations continue," Reid said as Congress held a rare Sunday session in a bid to avoid the so-called fiscal cliff. "There's still time left to reach an agreement, and we intend to continue negotiations."FULL STORY
(CNN) - In the final shopping weekend before Christmas, who will spend more on gifts: husbands or wives?
A new poll shows men will outspend the ladies, and will do so by a significant margin.
New York (CNNMoney) – It's not the end of the world - literally or for the fiscal cliff talks - but the latest signs of gridlock on Washington have struck fear into investors.
Lawmakers in the House failed to support the so-called "Plan B", a proposal backed by House Speaker John Boehner, late Thursday. The White House had already threatened to veto that plan, saying it would bring only "minimal" changes in projected budget deficits, but its failure underscored the lack of progress on Capitol Hill as the cliff draws nearer.FULL STORY
(CNN) - With the so-called fiscal cliff looming and the U.S. economy limping back to life, an overwhelming majority of Americans rate today's economic conditions as poor and are split on where the economy will be four years from now, according to a new survey.
New York (CNNMoney) - The U.S. economy grew faster than previously reported in the third quarter, as businesses built up their inventories and international trade was stronger than expected.
Gross domestic product, the broadest measure of the nation's economic health, grew at an annual rate of 2.7% from July to September, the Commerce Department said Thursday, faster than the 1.3% rate in the second quarter, and better than originally reported.FULL STORY
(CNN) - Days before American shoppers rush to the stores for Black Friday deals after Thanksgiving, former Republican presidential candidate Rick Santorum joined a political choir urging Americans to buy at home this holiday season.
The Patriot Voice, a non-profit organization Santorum created in June after suspending his bid for the presidency, announced he and his wife, Karen Santorum's, "Made in the USA Christmas Challenge" Tuesday pushing holiday shoppers to buy gifts made in the United States.