While most of Washington is focused on confrontations over gun control and immigration law, the White House is quietly exploring the possibility of striking a deal with lawmakers to rein in the budget deficit.
Less than a week after job-creation figures fell short of expectations and underscored the U.S. economy’s fragility, President Barack Obama will send Congress a budget that doesn’t include the stimulus his allies say is needed and instead embraces cuts in an appeal to Republicans.
Presidents who enjoy successful second terms usually pull fresh thinking into their inner circles and maintain close working relations with Congress. Barack Obama has shown little inclination to do either.
President Barack Obama sought to contain political damage by clarifying optimistic comments about the state of the U.S. private sector, saying it is “absolutely clear that the economy is not doing fine.”
BAE Systems Plc’s U.S. unit has started briefing Pentagon officials on the company’s plan to merge with European Aeronautic Defence & Space Co. in an effort to preserve its security clearance for defense contracts, according to two people familiar with the talks.