Thursday,  January 3, 2013 • Vol. 13--No. 168 • 26 of 32 •  Other Editions

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Further budget fights threaten to keep US growth and hiring sluggish for much of 2013

• WASHINGTON (AP) -- Housing is rebounding. Families are shrinking debts. Europe has avoided a financial crackup. And the fiscal cliff deal has removed the most urgent threat to the U.S. economy.
• So why don't economists foresee stronger growth and hiring in 2013?
• Part of the answer is what Congress' agreement did (raise Social Security taxes for most of us). And part is what it didn't do (prevent the likelihood of more growth-killing political standoffs).
• By delaying painful decisions on spending cuts, the deal assures more confrontation and uncertainty, especially because Congress must reach agreement later this winter to raise the government's debt limit. Many businesses are likely to remain wary of expanding or hiring in the meantime.
• One hopeful consensus: If all the budgetary uncertainty can be resolved within the next few months, economists expect growth to pick up in the second half of 2013.
• ___

With GOP votes and Biden's role, 2016 presidential politics hung over 'fiscal cliff' debate

• WASHINGTON (AP) -- Rep. Paul Ryan, the GOP's 2012 vice presidential candidate, voted for the "fiscal cliff" compromise that raised taxes on the wealthiest Americans. Republican Sens. Marco Rubio and Rand Paul voted against it. And Vice President Joe Biden helped broker the deal with GOP leaders in the Senate.
• As Congress closed out its term this week, New Jersey Gov. Chris Christie accused fellow Republicans of showing "callous indifference to the suffering of the people of my state" by not holding a vote on Superstorm Sandy aid. New York Gov. Andrew Cuomo joined him in the rebuke.
• And Secretary of State Hillary Rodham Clinton drew headlines for a different reason after being hospitalized for a blood clot in her head, an illness that raised questions about the Democrat's political future.
• While the next presidential primary voting is still three years away, the political implications of the actions and whereabouts of the potential field of 2016 candidates hung over extraordinary year-end Washington drama.

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