Congress Returns to Contentious Issues and Major Party and Intraparty Divisions

Kerry in China | Russia halts grain deal | New USDA deputy secretary to be sworn in

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July 17, 2023 05:28 AM

Kerry in China | Russia halts grain deal | New USDA deputy secretary to be sworn in

Washington Focus

Congress returns but the sharply divided parties remain.

The U.S. House of Representatives is bracing for another party-based clash over the funding of the government for the fiscal year (FY) 2024. This follows the narrow passage of a defense authorization bill by Republicans last week which ended with a bill that found no support among House Democrats and will not in the Senate.

Legislators have until Wednesday to propose amendments to the fiscal 2024 Agriculture appropriations bill, which could lead to test votes on farm bill matters. The measure could begin debate next week.

The House Appropriations Committee is set to debate the FY 2024 Interior-Environment spending bill this week. It proposes significant funding cuts to the EPA and restrictions concerning regulatory changes on pesticides and motor vehicles. The measure has riders that would repeal the Biden administration’s Waters of the U.S.” rule and prevent EPA from approving pesticide labels that differ from conclusions made under a specific review.

The House will also debate a Federal Aviation Administration authorization bill this week, which may result in votes concerning the future of sustainable aviation fuel.

Monday, July 17

• AI and securities regulation. National Press Club holds a Newsmaker Luncheon address with Securities and Exchange Commission Chair Gary Gensler on artificial intelligence and securities regulation.

• Global finance issues. Treasury Secretary Janet Yellen to participate in the G20 Finance Ministers and Central Bank Governors meeting on “Global Economy and Global Health,” in Hanoi, Vietnam.

• Economic measurements. The National Association for Business Economics (NABE) holds its 20th anniversary Economic Measurement Seminar, with appearances by Bureau of Labor Statistics officials. Runs through Tuesday.

• CFTC panel meeting. Commodity Futures Trading Commission holds a meeting of the Global Markets Advisory Committee on topics related to U.S. Treasury market reforms, swap block thresholds, and tokenization of assets.

• Stablecoins. Atlantic Council holds a virtual discussion on “New Rules for Stablecoins and the Future of Payments.”

• China, NATO, war in Ukraine. Washington Post Live holds a virtual discussion on “China, NATO and War in Ukraine.”

• Messaging apps. Atlantic Council virtual discussion on “Protecting point-to-point messaging apps: Understanding Telegram, WeChat, and WhatsApp in the United States.”

• Venezuelan elections. Atlantic Council virtual discussion with Venezuelan opposition presidential candidate Delsa Solorzano on Venezuela’s upcoming elections.

• Crypto regs. Better Markets virtual discussion on “The Future of Crypto Regulation.”

• Endangered Species Act issues. House Natural Resources Committee Chairman Bruce Westerman (R-Ark.) and Rep. Dan Newhouse (R-Wash.), chairman of the Congressional Western Caucus, hold a pen and pad briefing to announce a new Endangered Species Act Working Group.

Tuesday, July 18

• Ownership of U.S. farmland. Farm Foundation virtual forum on “Ownership and Investment in U.S. Farmland.”

• Right to repair. House Judiciary Courts, Intellectual Property, and the Internet Subcommittee hearing on “Is There a Right to Repair?”

• Food systems. Center for Strategic and International Studies (CSIS) discussion on “Innovative Public-Private Partnerships in Food Systems of the Future.”

• FY 2024 Budget: THUD. House Appropriations Committee markup of the FY 2024 Transportation, Housing and Urban Development (THUD), and Related Agencies bill.

• Economic measuring. Final day of the National Association for Business Economics (NABE) 20th anniversary Economic Measurement Seminar with remarks from Bureau of Economic Analysis and Bureau of Labor Statistics officials.

• Cryptocurrency issues. American Enterprise Institute for Public Policy Research (AEI) discussion on “The Economic and National Security Impact of Offshoring Cryptocurrency.”

• Risk in financial services. Peterson Institute for International Economics virtual discussion on “How to Think About Systemic Cyber Risk in Financial Services.”

• Renewable energy. Environmental and Energy Study Institute 26th annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum, including remarks from members of the Senate Renewable Energy and Energy Efficiency Caucus.

• State taxes and finance. Brookings Institution holds its 12th annual Municipal Finance Conference on “municipal capital markets and state and local fiscal issues.”

• FY 2024 budget and Indo-Pacific security. House Foreign Affairs Indo-Pacific Subcommittee hearing on “Achieving Peace through Strength in the Indo-Pacific: Examining the FY2024 Budget Priorities.”

• SEC oversight. House Financial Services Capital Markets Subcommittee hearing on “Oversight of the SEC’s Division of Corporation Finance.”

• Climate risk and financial regulators. House Financial Services Financial Institutions and Monetary Policy Subcommittee hearing on “Climate-Risk: Are Financial Regulators Politically Independent?”

• Competition in the Arctic. House Homeland Security Transportation and Maritime Security Subcommittee hearing on “Strategic Competition in the Arctic.”

• Home appliance regs. House Oversight and Accountability Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee hearing on “Cancelling Consumer Choice: Examining the Biden Administration’s Regulatory Assault on Americans’ Home Appliances.”

• Nuclear energy expansion. House Energy and Commerce Energy, Climate, and Grid Security Subcommittee hearing on “American Nuclear Energy Expansion: Updating Policies for Efficient, Predictable Licensing and Deployment.”

• Wage and Hours Division actions. House Education and Workforce Protections Subcommittee hearing on “Cutting Corners at WHD (Wage and Hour Division): Examining the Cost to Workers, Small Businesses, and the Economy.”

• U.S./Brazil relations. Wilson Center’s Brazil Institute holds a discussion on “New Perspectives on U.S./Brazil Relations.”

• Bidenomics. Washington Post Live virtual discussion on “U.S. economy and ‘Bidenomics.'“

• CFTC meeting on digital assets, blockchain. Commodity Futures Trading Commission (CFTC) meeting of the Technology Advisory Committee to discuss digital assets, blockchain technology, cybersecurity, and emerging and evolving technologies.

• Russia and sanctions evasion. Commission on Security and Cooperation in Europe hearing on “Russia’s Alpine Assets: Money Laundering and Sanctions Evasion in Switzerland.”

• U.S. policy in the Balkans. House Foreign Affairs Europe Subcommittee hearing on “Stability and Security in the Western Balkans: Assessing U.S. Policy.”

• U.S. Southern border. House Foreign Affairs Europe Subcommittee hearing on “Stability and Security in the Western Balkans: Assessing U.S. Policy.”

• Energy infrastructure. House Energy and Commerce Oversight and Investigations Subcommittee (Chair Morgan Griffith, R-Va.) of House Energy and Commerce Committee hearing on “Examining Emerging Threats to Electric Energy Infrastructure.”

• Endangered Species Act at 50. House Natural Resources Water, Wildlife and Fisheries Subcommittee hearing on “ESA (Endangered Species Act) at 50: The Destructive Cost of ESA.”

Wednesday, July 19

• Agricultural markets. Commodity Futures Trading Commission meeting of the Agricultural Advisory Committee on the agricultural economy, including geopolitical and sustainability issues, as well as recent developments in the agricultural derivatives markets.

• Rural water issues. Senate Agriculture Rural Development and Energy Subcommittee hearing on “Rural Water: Modernizing Our Community Water Systems.”

• IPEF-CPTPP overlap. The Peterson Institute for International Economics virtual discussion on “Do the IPEF (Indo-Pacific Economic Framework for Prosperity) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Trade Frameworks Complement or Overlap Each Other?”

• FY 2024 Budget: Interior, Environment. House Appropriations Committee markup of the FY 2024 Interior, Environment, and Related Agencies bill.

• FY 2024 Budget: SEC. Senate Appropriations Financial Services and General Government Subcommittee hearing on “A Review of the FY 2024 Budget for the U.S. Securities and Exchange Commission.” SEC Commissioner Gary Gensler testifies.

• Joint Session of Congress. U.S. Congress hosts an address by Israeli President Isaac Herzog.

• Municipal finance issues. Brookings Institution 12th annual Municipal Finance Conference on “municipal capital markets and state and local fiscal issues.”

• War in Ukraine impacts on Belarus. German Marshall Fund of the United States virtual discussion on “The Impact of the War in Ukraine on the Political Situation in Belarus: Three Short-Term Scenarios.”

• Critical minerals. U.S. Chamber of Commerce Business Leaders for Critical Minerals Summit.

• Health care regs and small businesses. House Small Business Oversight, Investigations and Regulations Subcommittee hearing on “Burdensome Red Tape: Overregulation in Health Care and the Impact on Small Businesses.”

• Russia issues. United States Institute of Peace (USIP) holds a discussion on “Russia in Africa: The Wagner Group, Russia-Africa Summit and Beyond.”

• House Science panel member day. House Science, Space and Technology Committee hearing on “Member Day.”

• U.S. border issues. House Homeland Security Committee hearing on “Biden and Mayorkas’ Open Border: Advancing Cartel Crime in America.”

• Global tax issues. House Ways and Means Tax Subcommittee hearing on “Biden’s Global Tax Surrender Harms American Workers and Our Economy.”

• Regulatory shifts. Federalist Society for Law and Public Policy Studies holds a virtual discussion on “Regulatory Whiplash,” focusing on transitions from one political party to another or even transitions between administrations of the same party.

• Vertical merger enforcement. Senate Judiciary Competition Policy, Antitrust, and Consumer Rights Subcommittee hearing on “Trends in Vertical Merger Enforcement.”

• Multilateral development banks. Wilson Center’s Latin America Program virtual discussion on “Reforming the Multilateral Development Banks for Global Structural Challenges in a Post-Pandemic World.”

Thursday, July 20

• USDA IT issues. Federal News Network virtual discussion on IT modernization, goals and insights at USDA, part of the “Ask the CIO” series.

• FY 2024 Budget: NOAA. Senate Commerce, Science and Transportation Oceans, Fisheries, Climate Change, and Manufacturing Subcommittee hearing on “Budget Oversight of the National Oceanic and Atmospheric Administration (NOAA).”

• Biden administration’s China agenda. House Select China Competition Committee hearing on “The Biden Administration’s PRC Strategy.”

• SEC swing pricing proposal. U.S. Chamber of Commerce discussion on “Swing and a Miss: The SEC’s Swing Pricing Proposal Is a Strikeout for Investors.”

• U.S. mineral strategy. Center for Strategic and International Studies virtual discussion on “A U.S. Mineral Strategy for Global Energy Transition.”

• Weaponizing the federal government. House Judiciary Select Weaponization of the Federal Government Subcommittee hearing on “Weaponization of the Federal Government” examining “the federal government’s role in censoring Americans, the Missouri v. Biden case, and Big Tech’s collusion with out-of-control government agencies to silence speech.”

• Supreme Court ethics. Senate Judiciary Committee markup of S 359, the “Supreme Court Ethics, Recusal, and Transparency Act.”

• WRDA of 2024. Senate Environment and Public Works Committee hearing on “The Water Resources Development Act of 2024: Non-Federal Stakeholder Views.”

• Critical minerals and supply chains. Americas Society/Council of the Americas (AS/COA) holds a virtual discussion on “Critical Minerals: Centering Latin America in Global Supply Chains.”

• Supply chain threats. Senate Homeland Security and Governmental Affairs Committee hearing on “America’s Supply Chain Security: Understanding & Mitigating Threats.”

• Bank failures. Senate Banking, Housing and Urban Affairs Committee hearing on “Perspectives on Deposit Insurance Reform after Recent Bank Failures.”

• Pandemic preparedness. Senate Health, Education, Labor and Pensions Committee markup of the “Pandemic and All-Hazards Preparedness and Response Act.”

• Supreme Court review. Federalist Society for Law and Public Policy Studies discussion on the Supreme Court’s 2022-2023 term.

• Supply chain protections. PunchBowl News discussion on “the race to protect and modernize the national supply chain.”

• Climate and extreme weather. Boston University’s School of Public Health discussion on “Building Equitable Resilience to Climate Events,” focusing on extreme weather events.

• Energy permitting. Information Technology and Innovation Foundation discussion on “Reimagining Energy Permitting for the 21st Century.”

• Autonomous vehicles. U.S. Chamber of Commerce discussion on “Innovation Highway: Unlocking the Social and Economic Benefits of Autonomous Vehicles.”

• Immigration. Bipartisan Policy Center discussion on “Legal Immigration Reform: Challenges and Promising Paths Forward.”

• Energy transition and net-zero goals. Atlantic Council virtual discussion on “the role of the private sector in enabling the energy transition and global net zero goals.”

Friday, July 21

• U.S./Indo-Pacific alliances. Brookings Institution discussion on “U.S. Alliances and Partnerships in the Indo-Pacific.”

• Report on the state of cities. National League of Cities virtual discussion on the “2023 State of the Cities” report, focusing on issues including infrastructure, public safety, economic development and housing.

• Supply chains and critical minerals. House Natural Resources Oversight and Investigations Subcommittee field hearing on “Securing Supply Chains: Access to Critical Minerals in the American Southwest.”

• Clean hydrogen strategy. United States Energy Association virtual discussion on “The National Clean Hydrogen Strategy and Roadmap.”

Economic Reports for the Week

Monday, July 17

The Federal Reserve Bank of New York releases the Empire State Manufacturing Survey for July. Consensus estimate is for a negative 6.5 reading, about 13 points less than in June.

Tuesday, July 18

Census Bureau reports retail sales data for June. Consumer spending is expected to grow 0.4% month over month, following a 0.3% increase in May. Excluding autos, spending is seen rising 0.3%, two-tenths of a percentage point more than previously. U.S. consumers have proved much more resilient than the majority of economists predicted at the start of the year.
Industrial Production
Business Inventories
National Association of Home Builders releases its Housing Market Index for July. Economists forecast a 57 reading, two points higher than in June. The index has risen for six straight months and is at its highest level in nearly a year, despite 30-year mortgage rates close to a two-decade high. Solid demand and a lack of existing inventory have buoyed home builders’ sentiment.
Bank of America , Bank of NY Mellon, J.B. Hunt Transport Services, Lockheed Martin, Morgan Stanley, Novartis, Omnicom Group, PNC Financial Services Group, Prologis, and Synchrony Financial release earnings.

Wednesday, July 19

MBA Mortgage Applications
Census Bureau reports new residential statistics for June. The consensus call is for a seasonally adjusted annual rate of 1.48 million privately owned housing starts, more than 9% less than in May.
Tesla reports second-quarter results. Shares of the electric-vehicle pioneer are up 128% this year, making them the third best performer in the S&P 500 index. Tesla announced a record 466,140 deliveries for the second quarter in early July, up more than 80% from the prior year.
ASML Holding, Baker Hughes, Crown Castle, Discover Financial Services, Elevance Health, Goldman Sachs Group, Halliburton, IBM, Kinder Morgan, Las Vegas Sands, Nasdaq, Netflix, Northern Trust, U.S. Bancorp, and United Airlines Holdings report quarterly results.

Thursday, July 20

Jobless Claims
Philadelphia Fed Manufacturing
Conference Board releases its Leading Economic Index (LEI) for June. The LEI has declined for 14 consecutive months, which points to weaker economic activity ahead, according to the Conference Board, which projects a recession in the next nine months.
National Association of Realtors reports existing home sales for June. Expectations are for a seasonally adjusted annual rate of 4.3 million homes sold, matching the May data.
Fed Balance Sheet
Money Supply
Abbott Laboratories, American Airlines Group, Capital One Financial, CSX, D.R. Horton, Freeport-McMoRan, Intuitive Surgical, Johnson & Johnson, Kenvue, Marsh & McLennan, Newmont, Philip Morris International, SAP, Taiwan Semiconductor Manufacturing, Travelers, and Truist Financial hold conference calls to discuss earnings.

Friday, July 21

American Express, Roper Technologies, and SLB announce earnings.

Key USDA & international Ag & Energy Reports and Events

Monday, July 17

Ag reports and events:

Export Inspections
Crop Progress
Feed Grains: Yearbook Tables