OVERNIGHT MONEY: All eyes on Friday morning unemployment report

Friday’s big story: Come morning, all economic eyes will be on the unemployment report from the Labor Department. The last report, handed out in the beginning of February, showed the unemployment rate falling from 9.4 percent to 9 percent in January. But any potential optimism stemming from that decrease had to be tempered by the positively anemic job growth — a net of 36,000 jobs, well short of expectations — that accompanied that rate drop. 

Friday’s report could shine some light on whether the nation is looking at a jobless recovery or if January’s job growth was hindered by severe winter weather, as some economists have speculated.

If a couple of releases this week are to be believed, the economy is showing some momentum ahead of Friday’s report. (But keep in mind: there was a similar story last month.)

The Labor Department said Thursday that the weekly initial jobless claims had dropped by 20,000, and that the current figure of 368,000 was the lowest number since May 2008. That report pushed the Dow Jones Industrial Average up nearly 200 points Thursday. Earlier this week, a separate analysis also reported a net gain of 217,000 private-sector jobs in February.

Ben Bernanke, the chairman of the Federal Reserve, told the Senate Banking Committee on Tuesday that he expects the nation’s job growth to disappoint for years to come. While there are some signs of optimism to be had in the job market, Bernanke said he expects it to take several years before the unemployment rate falls to normal levels.

WHAT ELSE TO WATCH FOR:

Tough row to hoe: You can’t describe all that much in 10 words, but the unusual terseness of a Vice President Joe Biden statement on Thursday does seem to underscore the difficulty of the current budget talks.

Here’s that Biden statement, issued after he met with the top Democrat and Republican from each chamber: “We had a good meeting, and the conversation will continue.”

(In other budget news, Democrats said they’ve met Republicans halfway, while the GOP says it will continue to push for $2 billion in cuts a week.)

Last train to Sunshine State: Sen. Bill Nelson (D-Fla.) is awaiting a Friday morning decision from his state’s Supreme Court, which is expected to rule on whether Gov. Rick Scott (R) can reject $2.4 billion in funds to build a high-speed rail line between Tampa and Orlando. 

Nelson has tasked lawyers to look into other ways to get the money to the state for the project by going around Scott. Two state senators — one Democrat and one Republican — filed a lawsuit arguing that Scott has to accept the funding and build the rail line under previously passed state law. 

Earlier Thursday, the mayors of Tampa, Lakeland and Orlando said they have received assurances from the Transportation Department that Florida would not have to pay back $2.4 billion if the high-speed rail project failed, according to reports. 

Transportation Secretary Ray LaHood gave Scott until Friday to reconsider his rail decision.

Call it pre-spin: As Rep. Steny Hoyer, the minority whip, acknowledged in a Thursday release, we don’t know what the Labor Department will say about employment tomorrow. 

But, should there be a positive report, the Maryland Democrat is certain that Republicans will try to take credit for a positive report — even though they haven’t put forward one measure to create jobs. 

Talking TARP: The Congressional Oversight Panel, created to oversee the expenditure of the Troubled Asset Relief Program (TARP), will hold a hearing Friday on Capitol Hill to discuss the program’s effects on the nation’s financial stability. Nobel laureate and Columbia professor Joseph Stiglitz and Simon Johnson, a Massachusetts Institute of Technology professor, are among those scheduled to attend. 

(Other) economic indicators:

—The Census Bureau is set to drop January manufacturing data (shipments, orders, etc.). 

BREAKING THURSDAY:

Bringing the hammer on housing: As our Peter Schroeder reports, Republicans on the House Financial Services Committee have moved forward legislation that would put an end to Obama administration programs looking to help homeowners having trouble with their mortgages.

Republicans have called the programs — one housed under the Federal Housing Administration, the other authorized by the Dodd-Frank legislation — both too expensive and not effective enough.

The Home Affordable Modification Program — arguably the administration’s signature housing initiative — is scheduled to have its date with the committee next week.

Bit of a gap: The government method of accounting has led state and local governments to lowball the pension funds they will have to pay by about $1.5 trillion, The Washington Post reports. 

About those subsidies: The presidents of NPR and PBS make more than President Obama, Sen. Jim DeMint (R-S.C.) writes in a Wall Street Journal op-ed, arguing that’s a sign that the broadcasters don’t need the government’s help.  

86ing the 1099: Our Floor Action blog kept up with all the happenings as the House voted to strike the 1099 reporting provision in the healthcare overhaul.

WHAT YOU MIGHT HAVE MISSED:

On the Money’s Thursday:

• “Alarming” conflict of interest: Sen. Chuck Grassley (R-Iowa) and Rep. Darrell Issa (R-Calif.) on the former SEC lawyer whose family inherited Madoff-linked money.

• “Flabbergasted”: Sen. Jeff Sessions (R-Ala.) on the Obama administration’s budget request for Transportation.

• The U.S. and Mexico are on the road to resolving a truck access dispute.

• Eight GOP senators are looking to put the kibosh on measures that spend on duplicative programs.

• Treasury Secretary Timothy Geithner says the oil reserves are there if we need them.

• Rep. Ron Wyden (D-Ore.) says to stay tuned for a tax reform bill.

• Small businesses want more certainty from the tax code. 

• And the service sector continues to show improvement. 

Please send any and all feedback to bbecker@digital-staging.thehill.com