WASHINGTON (MNI) – The following are items of interest Tuesday
relating to the pending congressional vote on whether to extend Bush era
tax cuts and to the deficit:

* President Obama, after meeting with both Democratic and
Republican congressional leaders Tuesday said he is appointing Treasury
Secretary Tim Geithner and Budget Director Jack Lew to negotiate how to
extend the Bush-era tax cuts. He said he felt there is agreement with
Republican leaders not to exploit disagreements for the sake of sound
bites, but to actually move forward toward solutions, not only on taxes,
but on ratification of the nuclear weapon non-proliferation treaty.
“None of this is going to be easy,” Obama said. “There are two parties
for a reason.”

* Said Obama, “They understand these aren’t times for us to be
playing games.” He said the next election is two years away and “right
now, we’re facing some very serious challenges. We share an obligation
to meet them and that will require choosing the best of our ideas over
the worst of our politics.”

* House Republican leader John Boehner and Senate Republican leader
Mitch McConnell said Tuesday after that meeting with President Obama
that they believe Congress will be able to reach an agreement with the
White House on extending the Bush era tax cuts. Speaking to reporters
from Boehner’s office, the two GOP leaders said the agreement they will
accept would extend all of the Bush era tax cuts, but hinted the length
of the extension will be the primary focus of the talks.

* Senate Minority Leader McConnell said that Congress must “first
resolve” the fate of the Bush tax cuts and a fund bill for the 2011
fiscal year in the Lame Duck session, before taking up any other
matters. In a briefing after a Senate Republican policy luncheon,
McConnell said that he is appointing his deputy, Sen. Jon Kyl, to
represent Senate Republicans in the coming tax talks with the White
House.

* The National Commission on Fiscal Responsibility and Reform,
scheduled to report its recommendations on how to narrow the deficit
Wednesday, scheduled a news conference for 3:30 p.m. ET Tuesday.
Congressional leaders have said they would consider its recommendations
if 14 of the 18 members agreed on them.

* Federal Reserve Chairman Ben Bernanke is expected to face
questions on fiscal policy later in the day when he discusses the
economy with business leaders in Columbus.

** Market News International Washington Bureau: 202-371-2121 **

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