BUSINESS & FINANCIAL NEWS

Last Update on March 18, 2010 13:48 EDT

House Dems on track for vote on health bill

WASHINGTON (AP) -- House Democrats are pushing toward passage of a landmark $940 billion health care overhaul bill. It would simultaneously deliver on President Barack Obama's promise to expand coverage while slashing the deficit.

The 10-year plan would provide coverage to 32 million people now uninsured through a combination of tax credits for middle class households and an expansion of the Medicaid program for low income people. Release of the legislation sets the stage for a House vote on Sunday. Democrats have already signaled they plan to go it alone, without Republican support. The GOP has steadfastly opposed Obama's plan from the outset.

It would restructure one-sixth of the economy, covering 95 percent of eligible Americans, in the biggest expansion of the social safety net since Medicare was created in 1965.

Obama signs jobs bill, presses for more

WASHINGTON (AP) -- President Barack Obama has signed into law a package of tax breaks and spending designed to give the U.S. a jobs boost. It encourages the private sector to start hiring again.

The measure includes about $18 billion in tax breaks and pumps $20 billion into highway and transit programs.

At a ceremony at the White House, Obama said the bill is necessary "but by no means enough."

Businesses that hire anyone unemployed for at least 60 days would be exempt from paying the 6.2 percent payroll tax through December. Employers also would get an additional $1,000 credit if new workers remain on the job a full year. Taxpayers will have to reimburse Social Security for the lost revenue.

New claims slip

WASHINGTON (AP) -- The Labor Department says the number of new unemployment claims fell last week for the third straight week. Initial claims are still considered high.

New claims for unemployment aid dropped 5,000 to a seasonally adjusted 457,000.

The four-week average of jobless claims, which smooths out volatility, dropped to more than 471,000.

Initial jobless claims are considered a gauge of the pace of layoffs and an indication of companies' willingness to hire. High unemployment has persisted even though the economy grew in the second half of last year.

Retail inflation flat

WASHINGTON (AP) -- A new report from the government indicates that consumers don't have to worry about rising prices.

The Consumer Price Index was unchanged in February. Excluding sometimes volatile food and energy, the core rate was up 0.1 percent last month.

With inflation generally muted, the Federal Reserve is left to continue efforts to revive the economy by keeping the short-term interest rate it controls at a record low near zero.

Leading indicators up slightly

NEW YORK (AP) -- A gauge of future economic activity rose 0.1 percent in February, suggesting slow economic growth this summer.

It was the smallest rise in the Conference Board's index of leading economic indicators in 11 months.

The LEI is intended to forecast economic activity in the next three to six months.

It has risen for nearly a year, helped by a rebound in manufacturing and the rally in the stock market which began in March 2009. High unemployment, slow income growth and tight credit are weighing on consumers, leaving the recovery modest.

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