House GOP Continues to Dispute Some CBO Farm Bill Estimates; Crop Equity Issues Raised

Baltimore harbor | FOMC minutes | Schumer hits House farm bill | Dem Scott wins Ga. primary

MARKET FOCUS

• Japan’s 10-year gov’t bond yield climbs above 1.0% for first time in 11 years
• Minutes from April 30-May 1 FOMC meeting released today at 2 pm ET
• Nvidia posts earnings late today
• Target misses Wall Street’s first-quarter earnings estimates
• Fed’s Waller: At least another three months of progress on inflation needed
• N.Y. Fed: companies and manufacturers still report difficulties obtaining supplies
• Central banks fueling gold rally
• Dollar may remain stronger for longer if Fed keeps interest rates steady
• Ag markets today
• Tour finds record wheat yield potential in Illinois
• Ag trade update
• NWS weather outlook
• Pro Farmer First Thing Today items

BALTIMORE BRIDGE COLLAPSE

• New 400-foot-wide, 50-foot-deep channel into Baltimore harbor opened on Tuesday
  

POLICY

• CBO says House farm bill has big funding gap, but GOP disputes estimates
• Senate Majority Leader Chuck Schumer (D-N.Y.) is nixing the House GOP farm bill,
• Dems argue GOP playing around with money to cover costs of politically motivated bill
• FarmDoc: House commodity title changes favor southern crops; big boost in spending
  

CHINA

• State research body says China should hike tariffs on large gas-powered vehicles
• China tells banks to step up lending
  

TRADE POLICY

• USTR to announce tariff increases on Chinese products under Section 301
  

ENERGY & CLIMATE CHANGE

• Nissan delaying production of certain new EV models on slower growth
• Biden admin to release 1 mil. barrels of gasoline to lower prices before July 4 holiday
  

LIVESTOCK, NUTRITION & FOOD INDUSTRY

• Australia reports first human case of H5N1 avian influenza
• Federal judge orders discovery continue in antitrust case against Agri Stats
• Biden admin launches summer school meals programs, named SUN Programs,
  

HEALTH UPDATE

• Nestle entering weight-loss market with new frozen-food brand called Vital Pursuit
  

POLITICS & ELECTIONS

• Rep. David Scott wins primary election in Georgia
• Fani Willis projected to win her election in Georgia
  

OTHER ITEMS OF NOTE

• Biden unveils new round of student debt relief; $7.7 billion to over 160,000 borrowers
• President Javier Milei details his plan to dollarize Argentina

— Equities today: Asian and European stock indexes were mixed to weaker overnight. In Asia, Japan -0.9%. Hong Kong -0.1%. China flat. India +0.4%. In Europe, at midday, London -0.4%. Paris -0.6%. Frankfurt -0.2%. Equities in Europe were also hurt by China’s signal that it’s ready to unleash tariffs as high as 25% on imported cars with large engines. The China Chamber of Commerce to the EU said it was informed about the potential move by “insiders,” and the levies would affect European and U.S. carmakers and have a “significant” impact on relations with the EU. U.S. Dow opened around 25 points lower. Two officials — including Susan Collins and Loretta Mester — last night reinforced a higher-for-longer message on interest rates. Austan Goolsbee is due to make appearances later. Then the central bank will release minutes of its May decision at 2 p.m. ET.

Japan’s 10-year government bond yield climbed above 1.0% for the first time in 11 years. The yield reflects expectations for further monetary tightening by the Bank of Japan. The yield has risen steadily since May 13 when the BoJ surprised markets by buying a smaller than expected amount of five- to 10-year Japanese government bonds during its regular operation.

U.S. equities yesterday: The Dow rose 66.22 points, 0.17%, at 39,872.99. The Nasdaq rose 37.75 points, 0.22%, at 16,842.62. The S&P 500 gained 13.28 points, 0.25%, at 5,321.41

— Traders are betting on another big move in Nvidia shares after the chip company posts earnings late Wednesday. The stock closed at a record high on Tuesday.

— Target missed Wall Street’s first-quarter earnings estimates. While its revenue was roughly in line with expectations, sales dropped by about 3% year over year. Customers, tired of high prices, purchased fewer discretionary items and groceries. CEO Brian Cornell stated that the company is focusing on offering value. Earlier this week, Target announced price cuts on approximately 5,000 items, including essentials like milk, bread, paper towels, and diapers.

— Ag markets today: Front-month SRW wheat futures rallied to the highest price since early August during overnight trade, pulling corn and soybeans higher. As of 7:30 a.m. ET, corn futures were trading 2 to 3 cents higher, soybeans were 3 to 5 cents higher and wheat futures were 8 to 12 cents higher. Front-month crude oil futures were around 60 cents lower, and the U.S. dollar index was more than 150 points higher this morning.

Beef margins in the black. After an extended period of red ink, beef packer margins pushed into the black this week thanks to surging wholesale beef prices. While boxed beef prices didn’t maintain all of their morning strength yesterday, they rose another 32 cents for Choice to $313.02 and $1.52 for Select to $300.87. Given the wholesale beef strength, feedlots are hopeful of getting firmer cash prices for a fifth consecutive week, though packers may be reluctant to raise bids given next week’s holiday-shortened slaughter schedule and their recent hefty purchases.

Cash hog index weakens, pork firms. The CME lean hog index is down 21 cents to $92.10 as of May 20, the second straight daily decline. The pork cutout value firmed for a second consecutive day, rising 92 cents as all but butts and hams posted price gains.

— Agriculture markets yesterday:

• Corn: July corn futures fell 2 1/2 cents to $4.58 and near mid-range.
• Soy complex: July soybeans fell 5 1/2 cents to $12.15, nearer the session low, while July soymeal closed down $1.80 to $372.30, marking a high-range close. July soyoil fell 51 points to 45.81 cents.
• Wheat: July SRW futures climbed 8 3/4 cents to $6.97 1/2 and settled near session highs. July HRW futures rallied 4 3/4 cents to $7.01 1/2 and closed nearer session highs. July HRS futures fell 1/2 cent to $7.38 3/4.
• Cotton: July cotton rose 35 points to 76.38 cents, nearer the session high.
• Cattle: June live cattle futures rallied $1.50 to $182.975 and settled nearer session highs. August feeder cattle futures climbed $1.35 to $259.825, while nearby May futures surged $2.25 to $248.95.
• Hogs: June lean hogs fell 52 1/2 cents to $96.40 though closed nearer the session high. Prices hit a three-month low early on.
  

— Quotes of note:

• Fedspeak. Fed Governor Christopher Waller said at least another three months of progress on inflation would let the Fed consider rate cuts by year-end. Elsewhere, Raphael Bostic said policymakers are “rethinking” their view on the neutral policy rate.
  
• The New York Fed says about a third of services companies and nearly half of manufacturers still report difficulties obtaining supplies.
  
• 31%... Percentage of Americans who said they were worse off financially in 2023 than the previous year, down from 35% in 2022, according to a survey by the Federal Reserve. According to the survey, Americans’ financial health remains relatively stable despite higher prices for goods and services offsetting the benefits of higher wages and more employment opportunities. About 72% of adults said their finances were at least okay or that they were living comfortably as of October, similar to 73% in 2022 but down from 78% in 2021. However, 65% of respondents reported that higher prices had worsened their finances. Additionally, 17% hadn’t paid all their bills the previous month, and 19% of renters fell behind on rent at least once in the past year. Perceptions of the economy remain below pre-pandemic levels.
  

— The minutes from the April 30-May 1 Federal Open Market Committee (FOMC) meeting will be released today at 2 pm ET. Key points of interest include details on the decision to slow the balance sheet runoff, finalized at this meeting, and insights into the “scenario analysis” approach the Fed is adopting. Scenario analysis involves examining various economic outcomes and corresponding monetary policy responses, typically used during periods of high uncertainty. The minutes may offer further indications of the Fed’s strategy in navigating future monetary policy.

Market perspectives:

— Outside markets: The U.S. dollar index was firmer, with only the euro slightly weaker against the greenback. The yield on the 10-year U.S. Treasury note was higher, trading around 4.45%, with a positive tone in global government bond yields. Crude oil futures were weaker ahead of U.S. gov’t inventory data due later this morning with U.S. crude around $77.90 per barrel and Brent around $82.05 per barrel. Gold and silver futures were seeing sizable losses ahead of U.S. trading, with gold around $2,409 per troy ounce and silver around $31.67 per troy ounce.

— Central banks are fueling a gold rally, likely because they want to spread their risks and diversify away from dollar-based assets following Russia’s invasion of Ukraine in 2022, the Wall Street Journal reports (link). Central banks have added around 2,200 tons of the metal since the third quarter of 2022, according to the World Gold Council — an increase of nearly $170 billion at current prices. Central bank net purchases now account for more than a fifth of global gold demand or about twice the proportion between 2012 and 2021. Russia’s roughly $300 billion in international reserves were frozen and there has even been talk of using the income on them to help defend or rebuild Ukraine. Meanwhile, China’s central bank, in particular, has been buying gold for 18 straight months since November 2022, boosting its gold reserves by 16%, or 10 million troy ounces.

— Dollar may remain stronger for longer if the Fed keeps interest rates steady as other nations lower their borrowing costs, Goldman said. That may also help the US to reach its inflation goal.

— Tour finds record wheat yield potential in Illinois. Illinois is poised to reap record wheat yields, the Illinois Wheat Association said following a one-day crop tour of the state, besting last year’s all-time high. The tour projected an average yield of 104 bu. per acre after scouting 59 fields, mostly in the state’s southern third. A year ago, the same tour projected an average yield of 97.1 bu. per acre. However, with harvest still a few weeks away, crop scouts on the tour cautioned that disease pressure, amplified by wet conditions this spring, could reduce final yields. Scouts noted the presence of fusarium head blight, a fungal disease also known as head scab, in many fields.

— Ag trade update: Indonesia purchased 210,000 MT of rice expected to be sourced mostly from Vietnam, Cambodia, Pakistan and Myanmar. Jordan tendered to buy up to 120,000 MT of optional origin milling wheat after passing on a similar tender Tuesday. Turkey provisionally sold 75,000 MT of durum wheat to trading house Casillo.

— NWS weather outlook: Deep storm begins to move away from the upper Midwest/Great Lakes today as the next heavy rain and severe weather threats emerge across the southern Plains toward the lower to mid-Mississippi Valley tonight... ...Heavy wet snow expected to overspread the higher elevations of the northern Rockies tonight into Thursday... ...Another rapidly developing low pressure system will bring severe weather and heavy rain threats into the Thursday night into Friday morning.

NWS

Items in Pro Farmer’s First Thing Today include:

• Wheat continues to surge overnight
• Strong investor demand for China’s ultra-long special bonds
• UK inflation eases less than expected

— New 400-foot-wide, 50-foot-deep channel into Baltimore harbor opened on Tuesday, following the collapse of the Francis Scott Key Bridge. This channel is crucial for maritime traffic into the port, especially since the March collapse, which killed six construction workers and obstructed the main 700-foot-wide channel. Coast Guard Rear Adm. Shannon Gilreath announced the 24/7 operational status of the deep-draft channel at a news conference, with plans to reopen the main channel by the end of the month.

Since the collapse, about 500 commercial vessels have used temporary channels. The Fort McHenry Limited Access Channel is now available for deep-draft vessels, which need to be accompanied by a Maryland pilot and two tugboats. Shallower commercial ships can use three alternate channels. Recreational boats can navigate around the wreckage through a temporary channel.

The channel’s opening followed the removal of the cargo ship Dali, which caused the collapse, from the wreckage site to Seagirt Marine Terminal. This 21-hour process involved explosive charges and represented a significant milestone for the Unified Command, a multiagency effort led by the Coast Guard, the Army Corps of Engineers, and Maryland state agencies.

Governor Wes Moore advocated for federal legislation to cover the $1.9 billion cost of a new bridge, anticipated to open by fall 2028. Moore emphasized the need for accountability and mentioned ongoing work with the Maryland Attorney General’s office to expedite the rebuilding process.

— CBO says House farm bill has big funding gap, but GOP disputes estimates. Controversial cost estimates from the Congressional Budget Office (CBO) signal a funding gap in the Title I safety net programs that would boost the federal deficit by $38 billion to $39.3 billion — after accounting for the $8 billion in savings provided by suspending USDA’s Section 5 spending authority via the Commodity Credit Corporation (CCC). Meanwhile, CBO says the voluntary base update available to some producers is estimated to tally just over $9 billion to nearly $11 billion.

House Ag GOP staff say the savings from the CCC suspension should total $53 billion, because previously CBO has forecast spending to be over $60 billion lower than the actual spending turned out to be. USDA Secretary Tom Vilsack has repeated stated it would be a mistake to limit the Agriculture secretary’s authority to aid farmers.

“Preliminary estimates that are selectively leaked do not reflect final text or final scores. We continue working with CBO to address the deficiencies in their scores and estimates,” said Ben Goldey, a spokesperson for the House Ag majority.

Comments: CBO does NOT assign a score until AFTER the bill is marked up, even though they have leaked some initial estimates. The Budget Committee does NOT do directive score keeping until AFTER the bill is marked up. So, at this stage, all the criticism is mere conjecture on how CBO might score the provision, not considering what the Budget Committee may decide. It is throwing whatever you can against something hoping something will stick.

— Senate Majority Leader Chuck Schumer (D-N.Y.) is nixing the House GOP farm bill, saying it “falls terribly short” and “will not have a future in the Senate.”

“Passing a farm bill has always been — and must be — bipartisan,” Schumer said on the Senate floor Tuesday. “But once again, the path Republicans — the MAGA Republicans — are taking with their farm bill breaks with the bipartisan tradition, which is always enshrined in the Ag bill.”

A GOP aide said: “Someone should ask Schumer how many Republicans are supporting Senator Stabenow’s ‘bill’ before he waxes poetic about ’bipartisanship.’ Additionally, Senator Stabenow’s ongoing efforts to undermine the House process shows a complete lack of respect and is unprecedented interference. Chairman Thompson has moved heaven and earth to ensure his bill reflects bipartisan priorities throughout all 12 titles. There has been a complete lack of leadership on the other side of the aisle and Thompson has been saddled with a dance partner that is disengaged, uninformed, and completely incapable of negotiating on behalf of his members.”

— Democrats argue that Republicans are playing around with money to cover the costs of a politically motivated bill. They also said Republicans will have to direct the Budget Committee to come up with a score in response to the CBO preliminary estimates. “Republicans ran up a $53 billion tab on the farm bill safety net without a sure way to pay for it,” said Britton Burdick, Scott’s spokesperson, according to Punchbowl News. “They’re scrambling to get Speaker Johnson and Budget Chair [Jodey] Arrington to use Beltway budget gimmicks to turn $8 billion into $53 billion. It’s funny money. It’s make-believe, just like the fantasy that their partisan farm bill will get to the House floor.”

Democrats charge Republicans will have to make major cuts to projected SNAP program spending — food stamps — to make the measure appear deficit-neutral. Republicans counter that they are just slowing the rate of growth in the program while expanding eligibility.

— FarmDoc: House farm bill proposal for commodity title changes could drastically increase spending, favoring southern crops. The House Ag Committee’s proposal for the next farm bill includes significant changes to statutory reference prices for covered commodities, which will impact payments from Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs. The proposal is expected to increase statutory reference prices for all covered commodities, leading to larger expected payments per base acre, particularly for rice, peanuts, and seed cotton, a FarmDoc report notes (link).

Key Points:

1. Higher Statutory Reference Prices:

• The proposal will raise statutory reference prices, increasing expected payments from PLC and impacting ARC payments.
• Peanuts and rice will see particularly high relative statutory prices, resulting in substantial expected payments per base acre.
  

2. Increased ARC Coverage:

• ARC coverage level will increase from 86% to 90%.
• Maximum payment will increase from 10% to 12.5% of benchmark revenue.
  

3. Spending Impact:

• Estimated commodity title spending will increase by over $30 billion.
• Notable increases in PLC/ARC spending per base acre:

Corn: +36%
Soybeans: +80%
Wheat: +78%
Seed cotton: +153%
Rice: +187%
Peanuts: +114%

4. Regional Disparities:

• Southern and Delta states will benefit more due to higher base acres in rice, peanuts, and seed cotton.
  The proposal exacerbates existing disparities in payments per base acre across different crops and regions.
  

5. Potential Challenges:

• The proposal’s voluntary update to base acres may lead to significant cost increases.
• A mandatory update could lower payments for farmers with high base acres in rice and peanuts, leading to political resistance.

Bottom line: The FarmDoc analysis says the House proposal for the Commodity Title would significantly increase spending, particularly benefiting farmers in the Southern and Delta regions with base acres in rice, peanuts, and seed cotton. This change may lead to increased disparities in payments across different crops and regions, raising challenges for future updates to base acres.

Of note: A farm bill analyst says: “I would be careful using their math. They don’t know how to calculate a percentage change. On the table they show seed cotton is getting a 21% increase in Reference Prices. It is actually 14.4%. So without going in and doing all the calculations myself, I can’t confirm that seed cotton increase.

Background: One farm bill veteran says trying to start the commodity infighting is no accident ahead of the markup.

Comments: The Illinois-based FarmDoc raises the thorny issue of crop equity relative to new farm bill developments. But it will also raise related questions as to how much corn and soybeans benefit from mandated use of those crops relative to the Renewable Fuel Program, and the coming tilt towards soybeans and perhaps corn relative to biofuel programs now being implemented, with more ahead relative to Sustainable Aviation Fuel (SAF). Economists note that relative to the RFS, mandated use of crops easily trumps Reference Prices.

Upshot: Senate Ag Chairwoman Debbie Stabenow’s (D-Mich.) released overview says she would give no reference price increase to crops that benefit from the escalator due to higher past prices while she would give an increase to peanuts, rice, and seed cotton. Her words. The House bill provides reference price increases to all crops based on costs of production analysis and considering the value of the escalator. So, both treat crops a bit differently, but the House provides an increase to all. Says one farm bill observer: “Perhaps the way to settle this is to ask a corn or soybean farmer what he or she would prefer, the Senate or House proposal? I think that would give you your answer.”

The farm bill analyst continues:

“Would you as a corn farmer rather keep your $3.70 reference price or have it moved to $4.10. If you like $3.70 the Senate bill is for you. If you like $4.10 the House bill is for you. Both have the escalator to increase the maximum benefit.

“Would you as a corn farmer want a 90% ARC with a 12.5% payment band or an 88% ARC with a 10% payment band? If 90/12.5, you want the House. If you like 88/10 you want the Senate.

“Did you prefer the current pay limit, or an increased pay limit provided your income is 75% derived from ag? If you like the current limit, then the Senate is your bill. If you need an increase, the House bill is more to your liking.

“Do you want to increase your base because you have planted more? The House bill lets you do that based on 2019-2023 plantings without harming other producers and includes non-program crop plantings. The Senate does not provide details on its base update except to say it is reserved for only underserved producers.

“Bottom line: compare the two bills. Line them up one against the other and ask yourself which provides me with the best safety net. The House bill will be the hands down winner every time, whatever the crop. No comparison. So, it is understandable that FarmDoc would parade out the north-south stuff again. That’s what they do.”

— State research body says China should hike tariffs on large gas-powered vehicles. China should raise its import tariffs on large gasoline-powered vehicles to 25%, a government-affiliated auto research body expert told China’s state-run Global Times newspaper as the country faces sharply higher U.S. auto import duties and possibly additional duties to enter the European Union. China’s current import tariff for cars is 15%. An official with China Automotive Technology & Research Center said hiking tariffs on gas-powered vehicles with 2.5 liter or larger engines would be within World Trade Organization rules and help accelerate China’s green transition, also commenting the move would be fundamentally different from protectionist measures elsewhere.

— China tells banks to step up lending. China’s central bank has guided some commercial banks to accelerate the pace of lending in May, four sources with knowledge of the matter told Reuters, after broad credit growth in April hit a record low. The central bank also hinted it would be more tolerant to banks which labeled bankers’ acceptances as new loans, even though the funds do not actually flow into the real economy, a practice regulators have frowned on in past years, two of the sources said. New loan figures in May are expected to be even worse than April given lackluster credit demand, one of the sources said. Meanwhile, China’s mega banks are urging branch managers to lend to state-owned companies that buy unsold homes, offering a quick show of support for the government’s housing rescue package unveiled last week.

— USTR to announce tariff increases on Chinese products under Section 301.The Office of the U.S. Trade Representative (USTR) announced it will publish a notice (link) detailing “substantial tariff increases on targeted, strategic products” from China under Section 301 tariffs. The proposal will outline the increased tariffs and establish a framework for exclusions on machinery and temporary exclusions for 19 tariff lines related to solar manufacturing equipment. A 30-day comment period will follow, starting May 29, with comments due by June 28. The tariff increases for 2024 will take effect on Aug. 1, while those for 2025 and 2026 will commence on Jan. 1 of each respective year. The proposal excludes agricultural commodities and includes an exclusion process for several types of agricultural machinery.

— Nissan is delaying the production of certain new electric vehicle (EV) models due to slower-than-anticipated growth in EV sales in the U.S. The lower demand is attributed to high sticker prices and insufficient charging infrastructure.

— Biden admin to release 1 million barrels of gasoline to lower prices before July 4 holiday. The Biden administration plans to release one million barrels (about 42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve to lower retail prices before the July 4 holiday. The Energy Department aims to maximize the impact on prices, with current gas prices averaging $3.584 per gallon, down for the fourth consecutive week and 6.4 cents lower than last month. Prices are also $1.45 lower than the June 2022 record average of $5.034 per gallon.

The gasoline will be delivered to retailers and terminals in 100,000-barrel quantities, with a focus on a competitive bidding process, timely supply before the July 4 holiday, and competitive pricing. The reserve, created after superstorm Sandy in 2012, ensures adequate supply for the tri-state and Northeast regions during peak demand periods.

The announcement aligns with the administration’s efforts to encourage companies to lower prices amid inflation concerns. GasBuddy projects gas prices to remain in the mid-$3 range throughout the summer, with many stations pricing below $3 per gallon and an average of $3.58 per gallon between Memorial Day and Labor Day.

— Australia reported its first human case of H5N1 highly pathogenic avian influenza (HPAI), involving a child who contracted the virus in India and has since recovered. This marks the first detection of H5N1 in a human in Australia. Additionally, an unidentified H7 strain has been found on an egg farm in Melbourne, suspected to have originated from wild birds. The infected birds will be culled, and movement restrictions have been imposed around the farm. Victoria’s chief veterinary officer, Graeme Cooke, highlighted the area’s high poultry density and the uncertainty about potential spread to other properties. This incident follows an H7N7 outbreak in Victoria in 2020, emphasizing the connection between wild and domestic birds in virus transmission.

— A federal judge has ordered that discovery continue in an antitrust case against Agri Stats, which is accused by the Department of Justice (DOJ) of aiding chicken, pork, and turkey processors in fixing prices by sharing sensitive information. The judge rejected Agri Stats’ request to stay discovery, stating that the case is unlikely to be dismissed without some level of discovery. The DOJ filed the complaint in September, and California, North Carolina, and four other states have joined the case. The outcome could significantly impact the U.S. meat industry.

— Biden administration launched its summer school meals programs, named SUN Programs, on Tuesday. This includes the new SUN Bucks EBT benefit, expected to help low-income families buy groceries for 21 million school-age children at a projected cost of $2.5 billion.

Participation includes 35 states, five U.S. territories, and four tribes, potentially reaching seven out of every ten school-age children in the country. Families enrolled in SNAP or other social welfare programs will be automatically enrolled in SUN Bucks, which provides $120 per child for groceries during the summer.

USDA Secretary Tom Vilsack highlighted that SUN Programs offer families convenient access to essential nutrition for children to thrive during summer and beyond. The programs also include SUN Meals, served at schools, parks, and other gathering places, and SUN Meals To Go, which offers pick-up and delivery options in rural areas. Both programs target children up to age 18 in high-poverty communities.

— Nestle is entering the weight-loss market with a new frozen-food brand called Vital Pursuit, targeted at consumers using GLP-1 weight-loss drugs like Ozempic or Wegovy. The brand will offer 12 items, including pizzas and frozen bowls with whole grains or pasta, all priced at $4.99 or less. The products will include essential nutrients and gluten-free options. Vital Pursuit is expected to be available in stores by the fourth quarter.

— House Ag Committee Ranking Democrat David Scott won his primary election in Georgia on Tuesday, easily surpassing the 50% threshold necessary for him to avoid a runoff election in June. Previously, the district included the southern and western Atlanta suburbs and exurbs; now, it includes more of the city’s eastern exurbs.

— Fani Willis, the Fulton County district attorney prosecuting former President Donald Trump, is projected to win her election in Georgia. Her handling of the 2020 election interference case was delayed due to questions about her disqualification after revelations of a romantic relationship with her lead prosecutor, Nathan Wade.

Meanwhile, Judge Scott McAfee, overseeing Trump’s case, is projected to win his nonpartisan election for Fulton County Superior Court. McAfee has faced criticism from conservatives for his decision not to remove Willis from the prosecution despite the controversy surrounding her relationship with Wade.

— The Biden administration announced a new round of student debt relief, amounting to $7.7 billion for over 160,000 borrowers. This includes:

• $5.2 billion for 66,900 borrowers through fixes to Public Service Loan Forgiveness (PSLF);
• $613 million for 54,300 borrowers through the Saving on a Valuable Education (SAVE) Plan;
• $1.9 billion for 39,200 borrowers through adjustments to income-driven repayment (IDR) payment counts;
• As of this announcement, the administration has cleared $167 billion in student loan debt for 4.75 million Americans.

— President Javier Milei reaffirmed his commitment to dollarize Argentina, outlining his government’s economic plan in detail. After addressing the central bank’s liabilities and reforming the financial system, Argentina will move towards a dual currency system, allowing both the peso and the U.S. dollar as legal tender, with the peso at a flexible exchange rate.

Milei stated that the central bank would cease printing pesos, anticipating that the dollar would become the dominant currency. This shift aims to eradicate the peso, which he likened to a “museum piece.” Since taking office on Dec. 10, Milei has acted to reduce the central bank’s liabilities, aiming to close the monetary authority. He has cut borrowing rates from 133% to 40%.

His economic team, led by Minister Luis Caputo, has made treasury notes more attractive than central bank debt, shifting a significant portion of debt towards the treasury. Once the central bank’s debt is cleared, capital controls will be lifted, allowing currencies to compete freely. However, the timeline for lifting these controls remains uncertain and market dependent.

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