OVERNIGHT MONEY: Job creation takes center stage

“And I think that, against the backdrop of the public knowledge of what is at stake here, that the Republicans may want to rethink shutting down government. And we’re willing to compromise.”

On the sequester front, there wasn’t much good news out of the non-partisan Congressional Budget Office on Thursday. 

The group estimated that keeping the spending cuts from sequestration in place through fiscal 2014 would cost up to 1.6 million jobs. 



Canceling the cuts could create between 300,000 to 1.6 million new jobs, CBO said.



House Democrats said they would use the report as part of their push to replace the $109 billion in spending cuts come fall. 

{mosads}“These are big numbers, and this is a very timely report, especially in light of the president’s speech this week on the middle class and the economy,” said Rep. Chris Van Hollen (D-Md.), who ordered up the report. 

Van Hollen said he has tried seven times since the sequester began on March 1 to get a vote on a replacement bill with farm subsidy cuts and tax increases.



Republicans quickly panned the CBO report. 

All the sharp-edged talk about jobs comes ahead of next week’s scheduled July jobs report. The government’s measure of the nation’s employment levels could provide the best reading, so far, as to how the economy is faring under higher taxes and the sequester. 

Those figures could further guide and drive the strategy on a broad range of fiscal and monetary policies heading into the fall. 

LOOSE CHANGE 

Protecting seniors: Sens. Amy Klobuchar (D-Minn.) and Susan Collins (R-Maine) introduced bipartisan legislation on Thursday that would crack down on fraud aimed at older Americans. The measure is designed to help fight scams that strip seniors of their assets by providing ways to identify and avoid them while improving the complaint system for those effected.

“Too often, seniors can have their entire life savings snatched up in scams specifically designed to target their assets,” Klobuchar said.

“This bill will give seniors and their families the tools they need to avoid scams before they happen, and will also help make sure that when a complaint is filed, it gets into the right hands so it can be addressed swiftly and effectively.”

Another round, please: Negotiators wrapped up the 18th round of trade talks on the 12-nation Trans-Pacific Partnership (TPP) in Malaysia on Thursday with an eye on trying to finish the trade deal this year. 

The TPP countries, which include the U.S., Australia, Canada, Chile, Malaysia, Mexico and Vietnam, reached agreement on technical issues that govern the conduct of their trade and investment relations in the chapters for market access, rules of origin, technical barriers to trade, investment, financial services, e-commerce and transparency.  

They also found common ground on intellectual property, competition and environmental rules. In addition, detailed plans were developed for closing remaining issues and completing their work. 

The negotiators also moved ahead in their efforts to construct ambitious access packages for industrial, agricultural and textile and apparel products, services and investment and government procurement. Negotiators agreed on the next steps and an overall plan for achieving these market access outcomes within the agreed timeframe.   

With Japan’s entry into the trade talks this week, TPP countries now account for nearly 40 percent of global gross domestic product and about one-third of all world trade.

The 19th round of TPP negotiations will be held in Brunei from Aug. 22-30.

Meanwhile, President Obama and Vietnamese President Truong Tan Sang agreed to complete the agreement as soon as possible this year.

They also agreed to a broad range of economic and trade policy principles, including enhancing the cooperation under the U.S.-Vietnam Trade and Investment Framework Agreement (TIFA) Council. Obama also expressed support for Vietnam’s progress in making economic reforms.

ECONOMIC INDICATORS 

Michigan Sentiment: Thomson Reuters/University of Michigan will release its final measure of consumer sentiment for July.

WHAT YOU MIGHT HAVE MISSED

— Senate moves bill increasing IRS, Dodd-Frank funding

— Reid, Schumer: Senate budget should be framework for tax reform

—  Reid, Schumer: $1T in new revenue a good target for tax reform

— Senate rejects motion to reduce Transportation spending bill to sequester levels

— Pelosi: ‘It would be great to have a first woman chairman of the Fed’

— Flake goes public with tax reform submission

— DOE official: Chinese natural gas could ‘wreak havoc’ on markets

— Senators float trade sanctions against Russia over Snowden

— Cornyn pushes amendment barring Detroit bailout

— Feds tell private student loan lenders to work with distressed borrowers

— Jobless claims tick up by 7,000 last week

— Staff data leaks out of the SEC

— House Oversight clears postal bill on party-line vote

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