FISCAL DRAG

So far, data ranging from manufacturing to retail sales suggest the U.S. economy's growth pace could top 3 percent in the fourth quarter, a sharp step up from the second quarter's 2 percent annual rate. In contrast, much of the rest of the world is slowing and the euro zone appears to have already fallen into recession.But economists worry the European debt crisis and upcoming fiscal tightening at home could slow U.S. growth next year. Obama, whose economic stewardship will face the judgment of voters next November, used the data to press Congress to extend a payroll tax cut which expires at the end of this month. "Now is not the time to slam the brakes on the recovery. Right now its time to step on the gas," he said. UGG Classic Mini 5854 Stocks on Wall Street surged early in the session on both the employment report and growing optimism of a solution to the European debt crisis, but ended flat as investors took profits from this week's big rally. Prices for U.S. government debt rose and the dollar firmed against a basket of currencies. Although the economy resumed growth two years ago, about 24.4 million Americans are either out of work or underemployed and employment remains 6.3 million below its level in December 2007 when the recession started. Still, the labor market is improving. While the government's survey of employers has shown a still-tepid pace of job growth, its separate poll of households has shown a total of 1.28 million jobs created over the last four months.