On The Money – No SEL, and maybe not okay


Happy Wednesday and welcome to On The Money, your nightly guide to everything related to your bills, bank account, and bottom line. Subscribe here: thehill.com/newsletter-signup.

Today’s big deal: It doesn’t look like Senate Democrats are going to include SALT relief in their scaled-down plan to build back better. We’ll also look at the Fed’s most recent announcement and lawmakers’ last-minute efforts to pass an annual spending bill.

But first, read how one of Elon MuskElon Reeve MuskOn the money – Vaccine or test mandate for companies has thrown Hispanics off Biden and Democrats’ agenda as midterm nears Can our nation afford rates of higher interest with the current national debt? FOLLOWINGRockets will soon crash into the Moon.

For The Hill, we are Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Contact us at [email protected] or @SylvanLane[email protected] or @ArisFolley and [email protected] or @KarlMEvers.

Let’s go.

Senate Democrats: SALT change likely to be cut

Senate Democrats propose a proposal to increase the cap on state and local tax deductions (SALT), a top priority of the Senate Majority Leader Charles SchumerChuck SchumerVoting rights failed in the Senate – where do we go from here? Forced delay prompts drastic tactic in Congress Democrats call on Biden administration to make it easier for at-risk Afghans to enter the United States MORE (DN.Y.), is likely to be removed from the revised Build Back Better Act.

Senate Democrats who participated in negotiations on the bill before the senator. Joe ManchinJoe ManchinBiden to meet with CEOs to discuss Build Back Better agenda Hoyer says a ‘meaningful’ version of Build Back Better will go through this year Gallego traveled to New York to meet with Sinema donors amid discussions on the main challenge: report PLUS (DW.Va.) blew it last month by saying there just isn’t enough room for the costly tax change, which Republicans say would benefit wealthy suburban households in the states. blue.

“Yeah, I think it’s dead,” said a Democratic senator, who requested anonymity to summarize early discussions about changing the bill to win Manchin’s support.

Some supporters are now suggesting it might be better to just wait until it expires after 2025 instead of agreeing to a compromise that would extend a version of it for another 10 years and leave many of their constituents unsatisfied. .

The Hill’s Alex Bolton has more on SALT here.

The Fed is eagerly awaiting

The Federal Reserve kept its interest rate range at near-zero levels on Wednesday, but hinted it would soon raise borrowing costs after a year of soaring inflation.

The Federal Open Market Committee (FOMC), the monetary policy arm of the Fed, kept its base interest rate range between zero and 0.25%, the level set in March 2020 at the start of the coronavirus pandemic. coronavirus.

The FOMC also said it would conclude its monthly purchases of Treasuries and mortgage-backed securities in March, in line with the pace of reduction set in December.

“With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the FOMC said in a statement.

“It’s a very, very strong labor market, and my deep feeling is that we can raise rates without having to seriously undermine it,” Powell said Wednesday.

Sylvan has more on the recent Fed decision here.

BUDGET PRESS

Budget spending deadline looms as lawmakers face pressure

Lawmakers on both sides of the aisle face mounting pressure to meet a critical deadline on a spending deal for the fiscal year to prevent a government shutdown, with only weeks before the funds are due to expire.

While leaders have made progress in recent weeks, Congress has until Feb. 18 to strike an agreement on spending levels for fiscal year 2022.

Aris breaks down the budget push here.

N95 plan could jeopardize small mask makers

The Biden administration’s effort to distribute 400 million N95 masks for free has dealt a blow to struggling U.S. mask makers who were just beginning to see sales recover during the recent surge in omicron variants.

Small U.S. mask makers saw their N95 sales drop by around 70-80% after President Biden’s mask announcement, potentially putting their operations at risk unless the federal government quickly purchases more respirators, according to the American Mask Manufacturer’s Association, their trade group.

  • U.S. mask makers, which formed at the start of the pandemic, have struggled to compete with foreign firms selling at far lower prices, but they argue the U.S. needs domestic production to bolster national security.
  • The Biden administration plans to order hundreds of millions more masks from domestic companies — a key opportunity for U.S. mask makers — but some smaller operators fear losing contracts with the nation’s biggest companies.

Karl dives into the business of making masks in the United States here.

Good to know

House Democratic leaders on Tuesday unveiled legislation to boost investment in scientific research and development in the United States to better compete with China and address the shortage of semiconductor chips.

Shortages of chips that power cars, computers and other electronics have exacerbated recent supply chain bottlenecks. Democrats want to show they are ready and able to tackle the problem.

Here’s what else we’ve got our eyes on:

That’s all for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you on Thursday.

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