It provides the government with extra time to hash out difficult fiscal decisions.
Sequestration is a fiscal policy procedure adopted by Congress to deal with the federal budget deficit. In simple terms, it's a way of forcing cutbacks in spending on government programs.
The fiscal cliff may sound like the name of an exercise retreat on a mountain top in Southern California, but the reality is not so pretty. What it refers to is the potentially dire economic situation the U.S. faces at the end of 2012. Here's a look.
The federal funds rate is a key element in how banks operate in the U.S. So what is it, and how does it affect the banking system? CNBC explains.
Americans often check their receipts to make sure they've bought everything they need, and probably to see if what they paid this time is any different from the last trip. The government does the same with the Consumer Price Index. Here are the details.
The producer price index is a trio of indexes that measure the change in the selling prices received by domestic producers for their output. CNBC explains.
A stock correction may seem like something is getting 'fixed' on Wall Street, but usually it's a trigger for financial losses. So what is a correction? CNBC explains.
Medicare and Medicaid are often confused with each other as both are government sponsored health programs. But there are major differences. CNBC explains.
The Laffer Curve is an economic theory that, legend says, was written up on a napkin at a Washington D.C., restaurant. What does the Laffer Curve actually say? CNBC explains.
The U.S. economy has suffered through many recessions in its history. But just what is a recession and how do they come about? Here are the details in this CNBC explains.
Knowing the amount of people who are unemployed is a key way to measure the state of the economy. So how is unemployment actually measured? Who are the so-called "shadow unemployed"? CNBC explains.
Social Security has been a controversial subject since its beginning, But what does it actually do and how does it work? CNBC explains.