I would bring the government back to what it was intended to be - a plain economical government.
-James K. Polk
TRUE AS STEEL: Commerce Secretary Wilbur Ross has been the point man lately for President Trump’s executive orders and the new EO Trump will sign directs the Commerce Department to investigate whether steel imports into the U.S. should be blocked on national security grounds. Ross will then have to report to the president whether a certain product is being imported in sufficient quantities. With the steel industry in decline for decades, Trump’s order is aimed squarely at one of his main constituencies in the rust belt. If Trump is able to get his infrastructure package off the ground mixed with a higher reliance on American steel, there could be a glimmer of hope out there for manufacturing.
UNDER PRESSURE: Feeling heat from the White House, meetings between Freedom Caucus Chair Mark Meadows and co-Chair of the Tuesday Group Tom MacArthur have focused on a deal appealing to both the conservative and moderate wings of the party. One of the major amendments bringing the sides together would give the states an option to apply for waivers to opt out of some of the ACA’s core requirements. The Freedom Caucus has expressed support for this tack, but moderate Republicans are still on the fence - and the rank-and-file (not to mention the Republican Leadership) have yet to see the language. This may be a step in the right direction, but forcing the issue next week with a government shutdown and the nonsensical 100-day mark looming, is not the right approach.
FRANCE IN FOCUS: Euroscepticism gets its next test on Sunday as the French head to the polls to elect their next president. Under the tenure of Socialist Francois Hollande, France has struggled to reduce unemployment and has been the target of numerous terror attacks - one as recently as yesterday. The top two vote getters in Sunday’s election will proceed to a runoff on May 7th. The polls are tight with Emmanuel Macron, an independent centrist and Marine Le Pen of the far-right National Front holding a slight edge. Brexit and Trump unmasked a global shift toward nationalism, but the Netherlands election last month seemed to halt that momentum. A Le Pen victory would usher in a new wave of anti-EU control that could spell doom for the bloc.
BACK TO THE FUTURE: As most of Washington’s economic focus has been on the spending bill and tax reform, Treasury Secretary Steven Mnuchin has been working in the shadows to raise the debt ceiling. The U.S. reached the debt limit in March, but the Treasury is using extraordinary measures to push off hitting the ceiling until later in the fall. As the deadline approaches, Mnuchin believes he has the bipartisan support necessary for raising the limit and an agreement could come at some point this summer and avoiding the annual brinksmanship.
THE PEN IS MIGHTIER: President Trump is keeping up a high pace of signing executive orders as he tries to cut back on regulations. Today Trump will sign an order that will direct Treasury Secretary Steven Mnuchin to examine the government’s liquidation authority to wind down banks outside of bankruptcy court. He will sign another order that examines the risks of putting systemically important nonbank financial institutions under Fed oversight. While these orders will have little immediate impact on any rules, Trump is showing he is serious about getting rid of regulations and trying to score quick wins before his first 100 days are up.
REPLAY | 2Q17 HEALTHCARE THEMES | THE WALKING WOUNDED:Yesterday we hosted our 2Q17 Healthcare Themes Call to update our #ACA2.0 thesis including a review of repeal and replacement. You can find the replay here.
