Happy Thanksgiving! Washington Extra will return on Monday.
Here are our top stories from Washington today…
U.S. vows unified response to North Korea, eyes restraint
The U.S. urged restraint following a North Korean artillery attack on South Korea and vowed to forge a “measured and unified” response with major powers including China.
For more of this story by Phil Stewart and Andrew Quinn, read here.
N.Korea pulls U.S. back to a “land of lousy options”
North Korea‘s artillery attack on South Korea poses the second test in three days of Washington’s vow that it will not reward what it deems bad behavior with diplomatic gestures, and underscores that options are limited without serious help from China.
For more of this analysis by Paul Eckert, read here.
Bernanke’s plea for fiscal help goes unanswered
Federal Reserve Chairman Ben Bernanke’s unusually blunt plea for fiscal help will probably go unanswered, leaving the economy too limp to put people back to work any time soon. Bernanke has warned that the country is on an economic trajectory that will leave millions unemployed or underemployed for many years, and he said there were limits to what the central bank alone could do to help.
For more of this analysis by Emily Kaiser and Andy Sullivan, read here.
Fed pondered radical steps amid weaker outlook
A weaker economic outlook prompted Federal Reserve officials to consider more radical steps before settling on $600 billion in bond purchases. According to meeting minutes that showed a resolute but divided central bank, policymakers sharply revised down their forecasts for economic growth next year, and saw unemployment at significantly higher levels than they had in their last forecasts in June.
For more of this story by Pedro da Costa and Mark Felsenthal, read here.
For a factbox on Fed staff forecasts, click here.
IRS holds key to preventing tax hikes on Jan 1
If lawmakers fail to renew Bush-era tax cuts before the end of the year, the IRS could offer millions of Americans an immediate respite from higher taxes.