Amazing Anti-Inflation Tool-POLITICO

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Sen. Joe Manchin Again, it opposes big climate, health and tax bills over concerns that inflation remains too high.

But such measures may be the easiest way for Congress to actually help the Federal Reserve reduce inflation.

West Virginia Democrat said he said I want to see another month of inflation Before considering taxes that could raise taxes on some high-income Americans and invest hundreds of billions of dollars in climate change and energy proposals. This follows the news that consumer prices rose 9.1% year-on-year in June.

Slimmed invoice — For now, Manchin says he is ready to support transactions to lower health insurance and prescription drug costs, as well as policy changes that may help mitigate inflation.

A broader plan to tackle much of the Democratic economic agenda, Manchin said, would have to wait until September if the Democrats wanted to save it.

“Can’t wait to see that there’s nothing to add to it?” He said of the latest inflation readings.

But a larger deficit reduction package (Manchin and Majority Leader Chuck Schumer Jason Ferman was discussing plans to reduce red ink by $ 500 billion), helping to draw more heat from the economy by reducing aggregate demand and all the support the FRB can get. Chaired the Economic Advisory Board during the Obama administration, stating that he would reach out when needed.

Supply first — There is a reason why the Fed tends to make most of the economic adjustments. Fed officials meet every six weeks to fine-tune policies as needed as incoming data and forecasts change. Congress cannot pivot it right away.

“But if something is so big and there is so much potential persistence against it, I’ll make an exception to that rule,” Ferman said last week. “This must be every hands-on-deck moment to control inflation.”

Deficit reductions aren’t usually considered a tool to combat inflation, but they can be more powerful for now as they “become in line with the granularity of what the Fed was doing.” Additional boost to fiscal policy measures aimed at healing the economy.

Are you still worried? — Last week, a responsible federal budget committee analyst said in a blog post addressing some criticisms of the reported plan that higher inflation would not exacerbate the financial impact of the plan.

Yes, inflation is much higher than the Office of Management and Budget, which was envisioned in the latest forecast for July. According to analysts, this means spending more on planning will cost more, but it also means that tax increases will bring more expected income.

And they argued that tax increases do not cause a recession, but may help avoid a recession.

“Fiscal policy by containing excess demand, increasing supply and lowering direct prices. Can assist the Fed By reducing inflation with less interest rate hikes, “they said. “This reduces the risk of financial market turmoil and recession.

It’s monday — We are completely on a summer dog day. Please be cool there.But send us your hottest tips and story ideas [email protected] When [email protected] Also @katedavidson When @aubreeeweaver..

Brookings Institute Local Finance Conference Monday-Wednesday … Housing start and building permit data released on Tuesday … SEC Executive Director Gurbir Grewal testifies in front of Housing Financial Services Subcommittee on Tuesday … Racial discrimination in banks on Tuesday Senate Bank Hearing on Discrimination … Tuesday Senate Bank Hearing on Homeless … Federal Vice-Chair Rael Brenard speaks at the Minneapolis Federal Conference on Community Reinvestment Act on Tuesday …

Existing Home Sales Data Released Wednesday … FHFA Director Sandra Thompson Testifies Before Wednesday’s Home Finance Services … Senate Financial Hearing on Wednesday’s Affordable Home Tax Incentives … Wednesday Toddlers Housing budget hearing on investment in the period … Senate bank hearing on housing conditions on Thursday.

Manchinboke in global tax transactions — Our Brian Farah: “Sen. Joe Manchin on Friday Rejected the idea It imposed a world minimum tax of 15% on US companies and made a big hole in the Biden administration’s campaign to rebuild the international tax system. Manchin (DW.Va.), Who spoke with West Virginia radio host Hoppy Kirshval, wants to put U.S. companies at a competitive disadvantage as other countries have not yet adopted taxes. He said he would not support the administration’s plans because he did not. “

It’s a pandemic, stupid — NYT Peter S. Goodman: “Last week, The magnitude of the overlapping crisis It has hit the global economy and is raising concerns about recession, unemployment, hunger and a plunge in the stock market. Underlying this pain is a very fundamental force, with little justification for the mention — a pandemic. Its power is far from what was spent, and it brings significant uncertainty to policy makers. “

Supply chain relaxation — Brendan Murray from Bloomberg: “[S]Supply stocks still afflict many consumers and businesses, Become more mediocre than intimidating Inflationary pressures have already fallen in some countries, as they did six months ago, especially in the United States, where they have regained their composure from the peak of the pandemic. “

Fed civil servants save money on full percentage point increases — WSJ’s Nick Timiraos: “Federal Reserve officials say they Highly likely to raise interest rates by 0.75 percentage points Later this month, a second series of meetings will be held as part of an active effort to combat high inflation. At the July 26-27 rally, policymakers left the door open for a larger, complete percentage point increase. However, some of them also poured cold water into recent interviews and public comment ideas at the same time, prior to the quiet pre-meeting period that began on Saturday. “

Economists are worried that it will go too far as the Federal Reserve becomes tighter. — WSJ’s Gwynn Guilford and Anthony DeBarros: “Economists say the Federal Reserve is in an effort to push inflation down. Raise enough rates to cause a recessionMany are worried that the central bank may be overkill. Economists surveyed by The Wall Street Journal show a potential recession at an average of 49% in July at some point in the next 12 months, from 44% a month ago to just 18% in January. It has risen. “

Follow the Federal Reserve — FT’s Valentina Romei and Tommy Stubbington: “With a series of significant rate hikes by the Fed, Pressure on central banks around the world Follow up to counter rising inflation and the stronger dollar. According to an analysis by the Financial Times, the central bank has opted for a significant rate hike of more than 50 basis points more than any time in the century, highlighting the challenges of price pressure and the US’s commitment to high interest rates. “

Attrition warfare economic war damage Russia to the west — The economic war between Russia and the West Test who can withstand the most conflict, Written by Josh Mitchell of WSJ. “Russia seems to be suffering even more so far, analysts say. This year’s economy has shrunk sharply, living costs have skyrocketed, and hundreds from McDonald’s to French carmaker Renault SA. Companies have fled, but analysts say the US and Europe are also at serious cost, largely due to rising energy prices that could rise this winter. “

Fink: Worry about food more than gas — FT’s Brooke Masters and Andrew Edgecliffe-Johnson: “Dramatic soaring oil and mineral prices after Russia’s invasion of Ukraine have long-term investors More dangerous effects of food inflation, BlackRock founder Larry Fink warns. “It’s food that we’re worried about not talking enough,” he told the Financial Times. “This isn’t just about inflation. There are also geopolitical concerns that result from it.”

Josh Britton Participates in the American Bankers Association to handle media relations on legislative and regulatory issues. He was previously the Communication Director of the Center for Ethics and Public Policy. (H / t Playbook)

International Monetary Fund Will Decrease global economic growth outlook In the next update, “substantially” as the chief financial officer is working on a reduced list of options to deal with the risk of exacerbation. — Bloomberg’s Yudith Ho and Michelle Jamrisko

Value of US dollars that is The strongest of the generationDevaluates currencies around the world, overturning everything from the cost of vacation abroad to the profitability of multinational corporations, destabilizing the outlook for the global economy. — NYT’s Kurt Russell, Joe Renison, Jason Karaian

Afghan government capabilities Manage the economy Mainly out of order.. The inexperienced Taliban leadership, who overthrew the Republic when US-led troops left the country, is isolated, under sanctions, and knows little about the state’s operations. — WSJ’s Margherita Stancati

A new era of ETFs for everything May be Just started on Wall StreetAlready inflating the industry with nearly 3,000 products and $ 6.2 trillion in assets. —Bloomberg’s Lady Katherine Grayfeld and Elaine Chen

Amazing Anti-Inflation Tool-POLITICO

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