More Americans say they are starting to feel the negative effects of sequestration as lawmakers begin battling over the second wave of deep, across-the-board budget cuts, according to a new NBC News Wall Street Journal poll.
Twenty-two percent of respondents said they have significantly been affected by the cuts – compared to just 16 percent in April, a month after the sequester took effect.
The poll also found that low-income Americans, who earn less than $30,000 per year, have been hit the hardest. Thirty-one percent said the automatic cuts in the federal budget have negatively affected their well-being, compared to 24 percent who said that in April. - Read more at CNBC
NEW ECON DATA ON SEQUESTER’S IMPACT Two important sets of economic data will be issued this week that will show the economic impact of the sequester so far. First, the Commerce Department will release its estimate of second quarter growth on Wednesday. Analysts expect GDP growth to remain sluggish—about 0.7 percent. Growth was 1.8 percent during the first quarter of the year. And on Friday, the Labor Department will release its July jobs report. Unlike the GDP estimate, economists are expecting a good report—showing about 175,000 new jobs added last month. - Read more at The Hill
LEW: OBAMA WON’T NEGOTIATE SPENDING CUTS Treasury Secretary Jack Lew on Sunday made clear that the president will not sign any funding bills that cut domestic spending, and he will not negotiate with House Republicans over the debt limit. “Congress can't let us default. Congress has to do its work,” Lew said on ABC's This Week. “I certainly hope that Congress isn't looking to create confrontations and false crises because we did see, in 2011, how bad that is for the American economy.” - Read more at POLITICO
OBAMA DISCUSSES NEXT FED CHAIR In an interview with The New York Times, President Obama discussed his deliberations over choosing a replacement for retiring Fed Chairman Ben Bernanke. From the transcript: "I have not made a final decision. I want a Fed chairman that can step back and look at [the dual goals of employment growth and price stability] objectively and say, let's make sure that we're growing the economy, but let's also keep an eye on inflation, and if it starts heating up, if the markets start frothing up, let's make sure that we're not creating new bubbles ... I think you can anticipate that over the next several months, an announcement will be made." - See the full transcript here
HOW THE SUMMERS LEAK COULD HELP JANET YELLEN Last week, a leak from the White House revealed that Lawrence Summers was Obama’s leading pick for the Fed. “This strategy offered them a chance to provoke a reaction on Capitol Hill without having to actually commit to the former Harvard University president,” The Fiscal Times’ Josh Boak writes. “Summers, 58, is a lightning rod of criticism for his consulting work with major Wall Street players and his past support of policies that left a sizable chunk of the financial sector lightly policed.” Dan Clifton, head of policy research at the institutional brokerage Strategas, told The Fiscal Times: “That’s what this week is about—to see how the wind is blowing on some of your nominees.” - Read more at The Fiscal Times
PRESIDENT HITS THE ROAD AGAIN Obama will deliver another economic speech Tuesday, this time in Chattanooga, Tenn., to discuss manufacturing and job creation. He returns to Washington on Wednesday for a meeting on Capitol Hill with House and Senate Democrats to discuss the coming battle over spending and the potential government shutdown looming at the end of September. - Read more at The Huffington Post