A new report this week showing the economy actually shrank in the fourth quarter of 2012 could hurt President Obama's social agenda.

The president made gun control and immigration reform top priorities in the first weeks of his second term.

Now, the economy and the anticipated consequences of upcoming spending cuts are threatening his plans.

Political analysts say despite the president's momentum and improving poll numbers, bad economic news weakens his ability to pass new initiatives.

Meanwhile, the Senate is poised to raise the nation's borrowing limit Thursday, allowing the government to borrow hundreds of billions of dollars more to meet its obligations.

The Republican-controlled House passed the legislation last week.