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Huge spending bill is still suspicious

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Huge budget is still suspicious — Most of Wall Street’s numbers are about the rapid decline in fiscal stimulus next year, assuming the Democratic Party will eventually break through the $ 3.5 trillion package, which includes a debt limit hike (required by October). You don’t have to worry much.

However, discussions on smaller bipartisan infrastructure deals have stalled.Nothing looks easy about the upcoming fall financial struggle. Through Marianne Levine, Sarah Feliz, and Heather Cagle: “Progressivists are already protecting their large-scale social spending proposals, as discussions on bipartisan infrastructure are at a loss. Or struggling to grow …

“Not all Democrats agree. Some centrists have the idea of ​​adding another $ 1 to the party’s already expensive plans that are being tapped to pass without a Republican vote. I’m flatly rejecting … Sen. Tim Kaine A member of the Budget Committee (D-Va.) Said in an interview Wednesday that he was optimistic about the bipartisan talks, saying, “If for some reason the bipartisan version doesn’t work, $ 4.1 trillion. I’m looking at a settlement bill. “

Real talk: Given the current federal debt and deficits, $ 4.1 trillion is a huge number and would be very difficult for moderates to swallow. It’s much easier for them if most of their spending goes through in a bipartisan way.

Where Covid is skyrocketing — Via Alice Miranda Olstein and Daniel Goldberg: “The delta strain of coronavirus is competing nationwide, and new cases and hospitalizations are skyrocketing.

“But now local and state officials have fewer options to slow the spread. In Texas, Covid’s hospitalizations have increased by 30% and deaths have increased by 10% in the past week. Governor Greg Abbott has recently been banned County, city, and school districts do not require masks. Montana did the same Force local authorities to dismiss health department orders due to vaccine and mask obligations. ”

Good Thursday morning — Please email me [email protected] Follow us on Twitter @Morning Money Ben.. Email Aubree Eliza Weaver [email protected] Follow her on Twitter @AubreeEWeaver..

President Biden “meets unions and business leaders to discuss strong support and urgent need for bipartisan infrastructure frameworks” this afternoon … 8:30 am unemployed allegations 360,000-35 Expected to drop to 10,000 …

Will women return to work? — Our Megan Cassella: “Near 1.8 million women dropped out of the workforce during a pandemic and are currently working on whether and how they will return to work in very different situations. And almost all carry some health risks ….

“Returning to work after spending months at home also means that for many mothers, they find a new form of childcare and give up the extra time they spend with their families and children. Considering how the workforce had increased before, there are now 2.3 million fewer women working than they would have been without the turmoil. ”

Bipartisan story in Limbo — Our Burgess Everett and Marianne Levine: “Senator Republicans have blocked the progress of the bipartisan infrastructure bill that is still under negotiation … Surprisingly, group members claim they are innocent. I will.

“Voting … has been a setback to Biden’s key priorities, but members of both parties are hoping for at least one more attempt in the coming days. Republican centrists said on Monday. Says they may be ready to offer votes as soon as possible. They believe the debate is over on a bill that is expected to provide nearly $ 600 billion. ”

X-DATE CBO — Our Caitlin Emma: “Unless Congress acts to raise or suspend debt caps in the coming weeks, the Treasury will run out of money in October or November. Congressional Budget Office said Wednesday..

“If that happens, the government will have a hard time paying the bill in full and on time, at the risk of default,” the independent budget agency said in a statement. … The debt cap is currently suspended until July 31st of this year. While Congress is finding a solution, the Treasury will then take some action to buy more time, but federal officials warn that those measures may disappear sooner than expected. Did. ”

Stocks rise as more corporate earnings roll in — AP’s Alex Veiga: “Wall Street shares closed again at highs and expanded after plunging earlier in the week. Investors turned their attention to corporate earnings, which are steadily moving.

“S & P 500 rose 0.8%. SME shares again outperformed the rest of the market, rising 1.8%. Coca-Cola raised its full-year forecast and reported better-than-expected results. The Chipotle Mexican Grill surged 11.5% after the closing bell on Tuesday, after the company reported far better results than expected. ”

Research: POWELL’s emotional tone can move the market — Reuters Howard Schneider: “Jerome Powell became chairman of the Federal Reserve Board in 2018, promising an easy-to-understand oral language approach to talking about monetary policy.

“It turned out to be a bit of a disadvantage. In a new study using artificial intelligence and voice analysis, Powell was the most negative of the last three chairs of the US Central Bank and his predecessor Janet Yellen. Has been rated as the best person to maintain a neutral tone. Her press conference and previous Ben Bernanki were comparative cheerleaders.

Investors want to save cash to buy stocks — Reuters Luis Klauskov said:

According to Keith Lerner, chief market strategist at Truist Advisory Services, “S & P 500 companies’ balance sheet cash has risen to a record $ 1.9 trillion compared to $ 1.5 trillion before the pandemic crisis in early 2020. I am. ”

Dollar gets boost from global horror — Paul J of WSJ. Davies: “The dollar is approaching this year’s highest level against other major currencies, boosted by investor concerns about global growth, rather than supporting the US outlook, according to the factset. The ICE US $ Index, which measures greenbacks against the currencies of major trading partners, exceeded 93 on Wednesday morning. It just closed.

Delta Variant does not expect to rush US recovery — WSJ’s Eric Morath and Amara Omeokwe: “The highly contagious Delta variant of Covid-19 poses no direct risk to the strength of the U.S. economic recovery, and analysts will see strong expansion in the second half of this year. I expect it to continue.

“Many economists predict solid economic growth with steady employment and expectations of continued spending, boosted by Americans’ desire to accumulate savings and travel and socialize for over a year in a pandemic. I’m keeping it. ”

But Inflation potential — WSJ’s GregIp: “There are two types of inflation, one is that demand grows faster than the economy’s capacity and the economy overheats, as it is usually associated with a stronger economy. In contrast, bad inflation results from supply cuts that reduce production, push up prices, lower incomes and weaken the economy.

“Most of the debate over inflation is about the good type, whether overheating is likely to occur, but investors have shown that the bad type is a greater risk to the economy.”

POWELL has broad support among top Biden Aids for a new federal term — Bloomberg’s Saleha Morsin, Nancy Cook, Jennifer Jacobs: “Federal Reserve Board Chair Jerome Powell widely supports his nomination among the White House’s top advisers, but the decision is this year. Scheduled for the second half and not yet issued before President Joe Biden, according to people familiar with the matter.

“But Biden officials remain open-minded about how the administration marks the central bank through personnel choices, including the chairman. In addition to Powell, the deputy for oversight. Randal Quarles’ Term of Chair-Important Regulatory Posts — Expirs in October and Governor Richard Clarida’s Board Term expires in January. ”

Gensler tells SEC to resume swap regulation efforts — Reuters Pete Schroeder: “The US Securities and Exchange Commission is likely to embark on a new initiative to develop a’long-term delinquency’rule for the registration and regulation of securities-based swap execution facilities, Gary Gensler said. The chair said on Wednesday.

“In a prepared speech, Gensler said he hopes the SEC will harmonize such derivative rules with similar rules already in place on the Commodity Futures Trading Commission. He also said. He emphasized that crypto tokens or similar products that are devalued from the value of a security, even when offered on a decentralized platform, must comply with securities law. ”



Huge spending bill is still suspicious

Source link Huge spending bill is still suspicious

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