Happy Friday and welcome back to On The Money on the first jobs day of the new decade. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL–Economy adds 145K jobs in December, meeting expectations: The U.S. economy added 145,000 jobs in December as the unemployment rate stayed steady, according to data released Friday by the Labor Department.
- The December jobs report met economists’ expectations of a gain between 145,000 to 155,000 jobs as hiring slowed slightly from November.
- The unemployment rate was unchanged at 3.5 percent, the lowest level in nearly 50 years, while the labor force participation rate also stayed even at 63.2 percent.
December’s solid jobs gain capped off a treacherous but ultimately solid year for the U.S. labor market, which faced pressure from trade tensions, global economic risks and the aftermath of a burst of stimulus in 2018. I explain why here.
Eyes on 2020: The resilient job market is also a significant advantage for Trump as he seeks reelection on the strength of the U.S. economy. The president is counting on near-record lows in joblessness, stable growth and low inflation to woo swing voters that might be repelled by his other policies, rhetoric or conduct in office.
Even so, the December jobs report showed areas of economic weakness that could cut against the president in November. I’ve got more on those inside.
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LEADING THE DAY
Dow surpasses 29,000 for first time: The Dow Jones Industrial Average briefly surpassed 29,000 on Friday for the first time, setting a new record.
The index hit the record early in the session following a moderate December jobs report, which found 145,000 new jobs created in 2019 and the unemployment rate staying unchanged at 3.5 percent, the lowest level in nearly 50 years.
The Dow then retreated. It closed at 28,823.77, down over 133 points.
- The new brief high for the Dow comes even as economic growth is expected to continue at a moderate pace. The World Bank projected that the economy in 2020 would grow at just 1.8 percent, below the sustained 3 percent growth the Trump administration promised.
- A recent survey of top financial officers found near unanimity that 2020 would see some sort of economic downturn, paired with an equally broad belief that the downturn would not fall into a full-blown recession.
Poll: Majority support tax hike for richest Americans: A Reuters/Ipsos poll released Friday found that most Americans think the rich should contribute more in taxes, as several Democratic presidential candidates push wealth taxes for multimillionaires and billionaires.
Several Democratic presidential candidates, including progressive Sens. Elizabeth WarrenElizabeth Ann WarrenHill.TV’s Saagar Enjeti: ‘Woke cultural left’ could complicate Sanders’s economic message Klobuchar releases names of bundlers On The Money: Economy adds 145K jobs, meeting expectations | Dow briefly surpasses 29,000 for first time | Poll finds majority back tax hike for richest Americans MORE (D-Mass.) and Bernie SandersBernie SandersHill.TV’s Saagar Enjeti: ‘Woke cultural left’ could complicate Sanders’s economic message Klobuchar releases names of bundlers On The Money: Economy adds 145K jobs, meeting expectations | Dow briefly surpasses 29,000 for first time | Poll finds majority back tax hike for richest Americans MORE (I-Vt.), have proposed taxes on wealthy Americans’ net worth in order to fight inequality and raise revenue to pay for their spending priorities.
- Sixty-four percent of respondents in the survey said that they agreed that “the very rich should contribute an extra share of their total wealth each year to support public programs.”
- Seventy-seven percent of Democrats agreed with this statement, as did 53 percent of Republicans.
- In contrast, a majority of respondents, 54 percent, disagreed with the statement that “the very rich should be allowed to keep the money they have, even if that means increasing inequality.” Democrats and Republicans diverged on this question, with 71 percent of Democrats disagreeing with the statement but a majority of Republicans agreeing with it.
ON TAP NEXT WEEK
Tuesday:
- The House Financial Services Committee holds a hearing on the affordable housing crisis, 10 a.m.
- The Senate Environment and Public Works Committee holds a hearing to approve the U.S.-Mexico-Canada Agreement, 10 a.m.
- The Senate Budget Committee holds a hearing to approve the U.S-Mexico-Canada Agreement, 10:30 a.m.
- A House Financial Services subcommittee holds a hearing on a proposal to modernize the Community Reinvestment Act, 2 p.m.
Wednesday:
- The Senate Health, Education, Labor and Pensions Committee holds a hearing to approve the U.S.-Mexico-Canada Agreement, 10 a.m.
- The Senate Commerce Committee holds a hearing to approve the U.S.-Mexico-Canada Agreement, 10 a.m.
Thursday:
- The Senate Foreign Relations Committee holds a hearing to approve the U.S.-Mexico-Canada Agreement, 10 a.m.
NEXT WEEK’S NEWS, NOW
- Six Senate committees will hold votes on the U.S.-Mexico-Canada Agreement, the deal proposed by Trump to replace NAFTA. That will be the last stop for the measure before an eventual Senate vote, which would likely happen after Trump’s impeachment trial
GOOD TO KNOW
- Democrats hoping to avoid an inner-party fight in a presidential election year are likely to skip passing a budget resolution in 2020.
- Wealth taxes proposed by Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.) would result in more than $1 trillion in lost earnings for workers over a decade, according to a report released Friday by the conservative American Action Forum (AAF).