On The Money – Yellen sounds the alarm on the national default

Happy Wednesday and welcome to On The Money, your evening guide to everything related to your bills, your bank account and your results. Subscribe here: thehill.com/newsletter-inscription.

The big deal today: the growing urgency to raise the federal debt limit without any progress in Congress to achieve it. We’ll also take a look at a major time for the Democratic spending surge and how much you’re paying for meat.

But first, a trailer for Derek Jeter throws jumps.

For The Hill, I’m Sylvan Lane. Email me at [email protected] or @SylvanLane. You can reach my colleagues from the Finance team Naomi Jagoda at [email protected] or @NJagoda and Aris Folley at [email protected] Where @ArisFolley.

Let’s go.

Treasury chief warns of impending cliff

secretary of the treasury Janet YellenJanet Louise YellenDemocrats Watch September Nightmare Congress Prepares To Fight Over Spending Amid Threat Of Government Shutdown Five Tax Issues To Watch As Democrats Draft .5T PLUS Bill sounds the alarm bells over a looming brawl over the country’s borrowing limit that could spark a global economic crisis if Congress does not take action.

Yellen’s warning, delivered to congressional leaders on Wednesday, that the country could default on its debt as soon as next month, gives new urgency to behind-the-scenes discussions on how to raise the debt ceiling. But no clear endgame is in sight.

  • Democrats may need 10 GOP votes to raise the debt ceiling if Republicans obstruct the measure. Democrats only have 50 votes in the Senate, and GOP leaders have indicated they will not help raise the borrowing limit.
  • Including an increase in the debt ceiling in the budget reconciliation measure Democrats are drafting would be a way around the GOP, but Democratic leaders have indicated they do not want the debt ceiling to be a part of it. of this package.
  • Another option to pass the debt ceiling would be to include it in a short-term government funding bill that Congress must pass by the end of the month to avoid a government shutdown, but this could turn against him if the Republicans endorse.

“The time for Congress to act now is to ensure that the United States is not about to default on some of its obligations,” said Rachel Snyderman, associate director of the Bipartisan Policy Center, a group of non-partisan thinking that closely follows debt. limit. “But what’s concerning right now is that there are so many important priorities at stake,” she continued. The Hill’s Jordan Carney and I have more here.

LEAD THE DAY

House Ways and Means Committee to begin Thursday to mark parts of President BidenJoe BidenTrump to comment on heavyweight fight over 9/11 Manchin reportedly backs spending plan of no more than .5T: reports South Dakota governor issues executive order restricting access to abortion drugs MOREbudget of $ 3.5 trillion, as the party continues its race against time to build its massive social safety net this month.

The committee unveiled several legislative proposals it plans to pass as it begins its multi-day markup later this week, including universal paid family and medical leave, as well as extending Medicare coverage to include dental, hearing and visual services.

  • The markup will kick off a complicated process for Democrats as they struggle to maintain a united front amid spending negotiations for the next package, which the party hopes to pass using a process called reconciliation that allows them to bypass the obstruction. of the Senate.
  • The committee’s part of the package is expected to be an important part of the overall bill and will likely add fuel to already existing tensions between the various factions of the Democratic Party over spending.

The Hill’s Aris Folley tells us what to expect here.

The White House worries about the price of meat

Officials in the Biden administration on Wednesday raised concerns about rising meat prices at the grocery store and described steps officials are taking to ease the burden on families and farmers.

Appearing at a White House briefing, director of the National Economic Council Brian DeeseBrian DeeseOvernight Energy & Environment – Brought to you by the American Petroleum Institute – Federal government targets illegal gas practices FTC to investigate any ‘collusive’ practice on gas prices Pelosi organizes risky vote in the House to judge budget for 0.5 T PLUS approved said rising prices for poultry, beef and pork are responsible for half of the food price increases consumers experience in grocery stores.

  • Deese noted that four companies control the majority of meat supply chains, with those companies posting record or near record profits during the coronavirus pandemic. These companies are JBS, Tyson Foods, Cargill Meat Solutions Corp. and National Beef Packing Co.
  • To cope with the price increases, the Agriculture Ministry plans to invest $ 1.4 billion in pandemic assistance to provide relief to small producers, processors and distributors, officials said in an article by blog.
  • The USDA and the Department of Justice are also conducting a joint investigation into pricing in the chicken processing industry.

The background: Biden faces growth political pressure on the steady rise in inflation that began shortly after he took office, in large part due to the reopening of the economy. But the meat industry has been the center of constant attention from antitrust officials in his country and the former President TrumpDonald Trump Trump to comment on heavyweight fight over September 11 Trump plans rallies in Iowa, Georgia USDA to provide 0 million COVID-19 aid to farm and food workers MOREadministration, raising concerns on both sides. Morgan Chalfant Hill see you here.

A LOAN FOREVER

GOP lawmakers urge Cardona against erasure of student loans for executives

Four House Republicans put pressure on Education Secretary Miguel CardonaMiguel Cardona Majority of parents think kids have fallen behind with distance education: poll Education secretary says pandemic has worsened disparities in achievement Florida school districts file petition to hear withheld funds MORE to exclude a potential mass forgiveness of federal student loan debt without Congressional approval.

In a Wednesday letter to Cardona, representatives of the GOP. Ted buddTheodore (Ted) Paul BuddPeter Thiel Shows Financial Power Before 2022 Trump Takes Two GOP Schumer Hits, Tim Scott Leading As Senate fundraising pace picks up MORE (NC), Warren DavidsonWarren Earl Davidson House GOP Hosts Protest Against Mask Mandate McCarthy Removes GOP From House Economic Panel Governors Races See Flurry Of Pro-Trump Candidates MORE (Ohio), Scott Petty (Pennsylvania) and Barry LoudermilkBarry LoudermilkHouse GOP stages protest against mask mandate McConnell pushes vaccines, but GOP scrambles message HE Cupp: “Politicization of science and health security has unquestionably cost lives” MORE (Ga.), Asked the Secretary of Education for a “pledge that you will not seek to usurp the will of the people and the authority that Congress has delegated to write off student debt beyond what the law allows. clearly”.

“The massive cancellation of student loan debt would not only be a blatant violation of the separation of powers, but would also be an affront to the millions of borrowers who responsibly repaid their loan balances,” they wrote.

While Biden and Cardona have wiped an estimated $ 9 billion from the $ 1.6 trillion federal student loan balance sheet through pre-existing forgiveness programs, the President is awaiting the results of a legal review to take action on forgiveness on a large scale. I explain here.

Good to know

Former President Trump’s budget chief is refusal to resign of the Naval Academy Visitors Council after being asked to step down on Wednesday, along with a number of other Trump appointees.

Here’s what else we have on our minds:

Almost a fifth of American workers said their employer requires staff to get vaccinated against COVID-19 last month, according to a Gallup poll released Wednesday.

That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. Well see you tomorrow.


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