 Happy Friday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis. THE BIG DEAL--Economy adds robust 312K jobs in December, well above expectations: The U.S. economy added 312,000 jobs in December, well above expectations, as the labor market continues to expand even as worries grow about an economic slowdown and turbulent stock markets. The unemployment rate ticked up to 3.9 percent from 3.7 percent as the labor force expanded by 419,000, the Labor Department reported on Friday. The labor force participation rate rose to 63.1 percent in December, the highest it has been since early 2014, from 62.9 percent in November. Economists had expected about 182,000 jobs to be added last month, and the stellar growth should ease some fears about a broader economic slowdown. The Hill's Vicki Needham tells us more here. Reactions: - "Recession fears in the United States are overblown." -- PNC chief economist Gus Faucher.
- David Berson, chief economist at Nationwide, said he expects the economy to fall into recession as soon as next year, "but the December employment report indicates that this isn't going to happen anytime soon."
- Speaker Nancy Pelosi (D-Calif.) praised the employment report in a statement, but warned that the ongoing partial government shutdown could cause jobs to "slip away."
Stocks soar on strong December jobs report, Powell remarks: Stocks soared Friday morning on the heels of a strong December jobs report and reassurance from the Federal Reserve. The Dow Jones Industrial Average gained 747 points, a 3.29-percent increase, while the Nasdaq composite and S&P 500 index rose 4.26 and 3.43 percent each by the end of Friday trading. - Analysts had expected the economy to add 182,000 jobs to end 2018. The significant overshoot gave a boost to traders after weeks of dismal headlines from the U.S. and abroad.
- The strong jobs report came after data released this week showed a global industrial slowdown and Apple slashed its earnings forecast, citing plunging demand.
Wall Street added to its gains after Federal Reserve Chairman Jerome Powell gave investors hope for fewer interest rate hikes in 2019. Powell said during a panel appearance that the Fed "will be prepared to adjust policy quickly and flexibly." While the Fed is projecting two rate hikes this year, Powell said the central bank is "listening sensitively to the message that markets are sending." Powell's remarks Friday were largely in line with previous comments about potential rate hikes. The chairman did not appear to suggest a dovish shift in Fed policy, but traders appeared to take solace in Powell's direct message to markets. Powell also says he won't resign: Powell also said Friday he would not resign if asked to by President Trump, who has reportedly considered firing the Fed chairman. It's unclear if Trump can do so, but experts say that a shot at Powell could devastate financial markets. LEADING THE DAY Trump threatens to extend government shutdown for years: President Trump on Friday threatened to keep about 25 percent of the federal government closed for years until he gets his desired funding to build a wall along the U.S.-Mexico border. He made the remark during a closed-door meeting at the White House with congressional leaders on the 14th day of a partial government shutdown. Trump confirmed after the meeting that he "absolutely" said the shutdown could last more than a year, as first noted by Senate Democratic Leader Charles Schumer (N.Y.) who was at the meeting. The president added that he didn't think it would last that long, saying Democrats want to make a deal. "I think it may have been somewhat contentious but it was also productive," Trump said. The Hill's Alexander Bolton and Jordan Fabian take us there. Headlines from the meeting: - Speaker Nancy Pelosi (D-Calif.) called the meeting a "lengthy and sometimes contentious conversation with the president." She said both sides agreed to continue staff-level talks but added that Democrats don't believe the government has to remain shut down until the standoff is resolved.
- Senate Majority Leader Mitch McConnell (R-Ky.) said after the meeting that Trump will "designate his top people" to meet with congressional leaders this weekend to find a way to end the government shutdown.
- House Majority Leader Steny Hoyer (D-Md.) said there was no talk during the meeting of a potential deal to include protections for Deferred Action for Childhood Arrivals (DACA) program recipients.
GOOD TO KNOW ODDS AND ENDS - A pair of senators on Friday introduced bipartisan legislation that would establish a new federal office focused on fighting Chinese and other foreign threats to U.S. technology, including supply chain risks and technology theft.
- Sen. Kirsten Gillibrand (D-N.Y.) is reaching out to Wall Street executives to gauge potential support if she were to run for president in 2020, according to CNBC.
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