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from Nicholas Wapshott:

Yellen shows her hand

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The difference between the Federal Reserve Board of Chairwoman Janet Yellen and that of her immediate predecessor Ben Bernanke is becoming clear. No more so than in their approach to the problem of joblessness.

Bernanke made clear that in the post-2008 economy, his principal goal was the creation of jobs, not curbing inflation. He settled on a figure, 6.5 percent unemployment, as the threshold that would guide his actions.

While remaining true to the spirit of Bernanke’s principal goal, Yellen and the rest of her board refined the target in their meeting on March 18 and 19, a change in approach that at first sent the wrong signal to the stock and bond markets. At the press conference following the meeting, Yellen said she would not be raising interest rates “for a considerable time,” which could mean “something on the order of around six months.”

The Fed decided it would no longer be tied to the “quantitative” 6.5 percent jobless figure, which is fast being approached. The February unemployment numbers, for example, are 6.7 percent. After listening to Yellen, the markets assumed -- wrongly -- that the Fed was about to abandon the jobless target, end quantitative easing and start raising interest rates.

from The Great Debate:

At the crossroads for immigration reform

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Always uncertain, House of Representatives action on immigration reform now appears definitively on off mode for 2014.

That’s because House Republicans loudly denounced Speaker John Boehner’s most recent effort to chart a way forward by proposing principles for legislation. They saw the specter of divisive infighting when what they want is a united front for their November re-election bids.

from Reihan Salam:

GOP: Beyond repealing to reforming

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The last time the federal government approached its statutory debt limit, Republicans in the House of Representatives fought tooth and nail to attach tough conditions to any increase. On Tuesday, House Speaker John Boehner (R-Ohio) shepherded a “clean” debt limit increase through that barely raised an eyebrow.

This increase didn’t even set a dollar amount. It simply suspended the debt limit until next March. I can almost hear the conversation: “So, where should we set the new debt limit?” “Ah, you know, whatever!”

from David Rohde:

The sanity caucus

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Our government has failed us -- again. Given the debacle over the last 16 days, it’s hard to praise anyone in Washington. Or anything.

The shutdown cost the United States $24 billion, according to Standard and Poor’s. Consumer confidence dropped by the largest amount since the 2008 collapse of Lehman Brothers. Our partisanship is undermining our international standing and slowing our economy.

from The Great Debate:

The power in a president’s mandate

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The controversy over responsibility for the government shutdown has brought about one surprising consequence: a debate over the meaning of the term “presidential mandate.”

Republicans are asserting President Barack Obama has no warrant to call on Congress to fund the Affordable Care Act -- since his victory margin in 2012 was so slender and the voters kept Republicans in control of the House of Representatives. The White House, meanwhile, is countering that the healthcare legislation was not only approved by both houses of Congress, and validated by the Supreme Court, but also was authenticated by his election triumph -- after a campaign in which his opponent made hostility to the healthcare reform law his main point of attack.

from The Great Debate:

The politics of Syria

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Congressional Democrats are in a bind. If they vote to authorize a military strike on Syria, they could be putting the country on a slippery slope to war. But if they vote no, they will deliver a crushing defeat to their president.

What President Barack Obama did was call their bluff. Last week, more than 50 House Democrats signed a letter urging the president to “seek an affirmative decision of Congress” before committing to any military engagement. That was the Democrats' way of going on record to express reservations about what Obama sounded like he was going to do anyway. Then, lo and behold, the president decided to do exactly what they asked. Now it's their decision.

from The Great Debate:

2014: The Democrats’ dilemma

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Washington has been fascinated by Republican self-laceration since the 2012 election. Karl Rove triggered a circular firing squad by vowing to take out unwashed challengers in GOP primaries. Louisiana Governor Bobby Jindal begged Republicans to stop being the “stupid party.” Strategists say the party can’t survive as stale, pale and male. Tea Party legislators knee-cap GOP congressional “leaders” and well-funded political PACs strafe any who dare deviate from the party’s unpopular gospel. Republicans are even talking about changing “Grand Old Party” to something more fashionable.

Representative Paul Ryan’s newest budget will put every Republican on record voting to turn Medicare into a voucher, gut Medicaid, repeal Obamacare, savage investment in education and leave some 50 million Americans without health insurance. Not surprisingly, polls suggest Congress is less popular than colonoscopies, and Republicans poll at lowest levels on record.

from Tales from the Trail:

Washington Extra – A man and his dog

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Here's a modern-day twist on Harry Truman's quip "If you want a friend in Washington, get a dog." If you, the president, have called John Boehner and urged him to compromise on extending the payroll tax deal by two months, then all that's left to do is go out Christmas shopping with your dog.

That's what President Obama did today, taking Bo, the only family member who hasn't gone to Hawaii, to a pet store in a Virginia strip mall.

from Tales from the Trail:

You take that back, Mr. President!

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Republicans are lining up to throw punches at President Barack Obama.

The Democratic president has been trading verbal barbs with House Republican Leader John Boehner over economic and fiscal policy. Obama on Wednesday took several swipes at Boehner and charged that it was the Republicans who took the country into deficit when they were running things in Washington. USA-STIMULUS/

Boehner retorted that Obama should freeze all tax rates and cut "federal spending to where it was before all the bailouts, government takeovers, and 'stimulus' spending sprees." Boehner is in line to become House Speaker if Republicans seize control of Congress in November elections.

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