Two economic reports-- one by the Chief Economist of Moody's Analytics and another by investment bank Goldman Sachs-- recently suggested that the budget plan passed by House Republicans looking to slash $61 billion over the course of this fiscal year might very well reduce job growth and slow US economic growth.

Mark Zandi of Moody's Analytics, who advised on Obama's 2009 economic stimulus plan as well as served as an economic advisor to John McCain during his second presidential run, claimed that GDP would be reduced by 0.5% and there would be 700,000 fewer jobs if the bill put forward by the GOP is implemented.  The Goldman Sachs report struck an even more ominous tone warning that the economy could potentially be slowed by 2% in just the second and third quarter of this year.

Republicans, for their part, of course, took no time to blunt the potential impact of the Zandi report saying that Democrats promised that Obama's stimlus plan would keep unemployment below 8% despite the fact that it has remained near 9% since 2009.  The dual reports present a major challange for Republicans-- and, in particular, their class of 87 freshmen representatives-- as they sit at the table with Senate Democrats to try to arrive at a budget compromise.

Democrats and Republicans came together this week to extend the federal budget and ensure that the government would remain open for the next two weeks, but the big question will be whether the two sides can agree to a longer-term solution.