New York (CNNMoney) - Can the stock market shake off yet another punt by Congress? It just might.
For weeks, many have worried that no resolution to the fiscal cliff would lead to the kind of brutal sell-off that followed the voting down of the TARP bailout and the downgrade of America's credit rating.FULL STORY
New York (CNNMoney.com) - President Obama called on the financial industry Thursday to support his efforts to enact new regulatory reforms or risk repeating the "failure of responsibility" that nearly brought down the nation's economy.
"I believe in the power of the free market," Obama said in a speech at Cooper Union, not far from the New York Stock Exchange. "But a free market was never meant to be a free license to take whatever you can get, however you can get it."
The highly anticipated speech cames as Obama and Democrats in Congress are pushing to get a reform package approved this year, with talk that there may be support from at least some Republicans. The House passed a regulatory reform bill in December, and the Senate version is currently being debated.
The reforms the administration has proposed represent a "significant improvement on the flawed rules we have in place today," Obama said. But that push get those reforms enacted has had to contend with "the furious efforts of industry lobbyists to shape them to their special interests."
New York (CNNMoney.com) - Senate Democrats are taking aim at carry-on baggage fees after Spirit Airlines became the first U.S. carrier to propose charging passengers to store luggage in overhead bins.
On Wednesday, Sen. Chuck Schumer, D-New York, introduced a bill that would amend the tax code to eliminate a loophole that he and four other Senators say allows airlines to avoid taxes on certain fees.
"This latest fee crosses the line and is a slap in the face to travelers," Schumer said in a statement. "Our legislation will rein in the airlines and keep air travelers from being gouged every time they board a plane."
That effort comes one day after two other Senators put forward a bill that would change how the Federal Aviation Administration regulates carry-on baggage fees.
New York (CNN)–The panel of economists responsible for identifying changes in the U.S. business cycle said Monday that it's "premature" to say whether the recession that began in 2007 has ended.
"Although most indicators have turned up, the committee decided that the determination of the trough date on the basis of current data would be premature," according to a statement from the National Bureau of Economic Research.
New York (CNNMoney.com) - Treasury Secretary Tim Geithner said he expects the unemployment rate to remain "unacceptably high" for a long time, even as the economy recovers and job growth slowly resumes.
"I think the key thing that's going to happen is the economy's going to start creating jobs again," Geithner said in an interview aired Thursday on NBC's "Today." "But the unemployment rate is still terribly high, and it is going to stay unacceptably high for a long period of time."
The comments came ahead of the government's monthly jobs report, which is due Friday. That report is expected to show that U.S. employers added 190,000 jobs in March, but the unemployment rate remaining at a persistently high 9.7%.
"It is going to take a long time to bring it down because of the damage of the recession," Geithner said of the jobless rate.
New York (CNNMoney.com) - A growing number of major U.S. corporations are expecting to take tax charges in the first quarter related to the recently enacted health care reform law.
But while some companies are fretting about the charges, defenders of the law say the new rules merely close a loophole that allowed a double-dip benefit.
On Wednesday, Boeing became the latest company to disclose that the law, which was signed by President Obama last week, will negatively impact its financial results.
The aeronautics company expects to take an income tax charge of roughly $150 million, or 20 cents per share, in the first quarter of 2010 as a result of the law.
NEW YORK (CNNMoney.com) - Federal Reserve Chairman Ben Bernanke said Tuesday he sees "tentative signs" that the economy's dramatic decline is easing, but that full recovery won't come until the financial system is stabilized.
"Recently we have seen tentative signs that the sharp decline in economic activity may be slowing," Bernanke told students and faculty of Morehouse College in Atlanta.
Bernanke said "a leveling out of economic activity is the first step toward recovery." But an economic recovery will not be sustainable "without a stabilization of our financial system and credit markets," he added.
Among the positive indicators Bernanke mentioned were recent upticks in home sales and new home construction. He also pointed to improvements in consumer spending, notably sales of new vehicles.