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Politics On The Money: Consumer prices jumped 5 percent annually in May | GOP senators say bipartisan group has infrastructure deal

01:40  11 june  2021
01:40  11 june  2021 Source:   thehill.com

Where do infrastructure talks go from here now that Biden's negotiations with Republicans collapsed?

  Where do infrastructure talks go from here now that Biden's negotiations with Republicans collapsed? As new infrastructure talks begin, old differences with Republicans have already emerged.Weeks of negotiations resulted in little headway, with major differences on costs and taxes going unreconciled. Republicans accused the president of changing his demands and being unwilling to compromise on his insistence on "social infrastructure" while the White House said the Republicans' offers didn't meet America's needs.

Happy Thursday and welcome back to On The Money. I'm Naomi Jagoda, in for Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

Mitt Romney et al. standing next to a man in a suit and tie: Sen. Mitt Romney (R-Utah) © Greg Nash Sen. Mitt Romney (R-Utah)

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Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter:@SylvanLane, @NJagoda and @NivElis.

THE BIG DEAL: Consumer prices jumped 5 percent annually in May

Consumer prices rose 5 percent in the 12 months leading up to May, a finding that was higher than expected and prompted some policymakers to renew their concerns about inflation.

On The Money: Democrats wary of emerging bipartisan infrastructure deal, warn of time crunch

  On The Money: Democrats wary of emerging bipartisan infrastructure deal, warn of time crunch Happy Friday and welcome back to On The Money, where we're getting FOMO from Mike Pence's gorgeous new house. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

The consumer price index (CPI), a closely watched gauge of inflation, rose at the fastest annual rate since 2008 as suppliers struggled to keep up with sharply rising demand, according to data released Thursday by the Bureau of Labor Statistics (BLS).

What you need to know about the inflation data:

  • The figures come as Biden and the Federal Reserve face increasing pressure to act on inflation. Republicans argued that the data showed the dangers of Biden's spending proposals.
  • Economists have long expected inflation to temporarily increase as the U.S. economy moves toward fully reopening.
  • Much of the increase in the CPI was due to an increase in prices for used cars and trucks.

Read more here on the CPI numbers from The Hill's Sylvan Lane.

Progressive groups are “fed up” with Biden’s infrastructure playbook

  Progressive groups are “fed up” with Biden’s infrastructure playbook Progressives want Biden to stop negotiating with Republicans and embrace budget reconciliation.Progressive groups, who cheered Biden passing his $1.9 trillion Covid-19 stimulus bill through Congress with only Democratic support early on, are growing increasingly frustrated over Biden’s prolonged infrastructure negotiations with Senate Republicans.

Sylvan also wrote more here about the political challenges the numbers pose for Biden and the Federal Reserve.

LEADING THE DAY: GOP senators say bipartisan group has infrastructure deal

Republican senators who are negotiating within a bipartisan group of 10 senators say they have reached a tentative deal on the size of an infrastructure package and how to pay for it.

The emerging deal would spend only a fraction of the $4.1 trillion investment President Biden has called for and would not raise taxes, which could make it a tough sell within the broader Senate Democratic caucus.

Members of the bipartisan group cautioned Thursday that the tentative deal still needs to be presented to the Senate Republican conference and the White House to see if there's broader buy-in.

"We have a tentative agreement on the pay-fors, yes, but that's among the five Democrats and the five Republicans. It has not been taken to our respective caucuses or the White House so we're in the middle of the process. We're not at the end of the process, not at the beginning but we're in the middle," said Sen. Mitt Romney (R-Utah), a member of the group.

Bipartisan talks sow division among Democrats

  Bipartisan talks sow division among Democrats Democratic lawmakers are splitting apart over whether it makes sense to continue negotiating with Republicans on a scaled-down infrastructure package after President Biden ended talks with Sen. Shelley Moore Capito (R-W.Va.), the lead Republican negotiator on infrastructure. A new group of Senate negotiators is looking to pick up where Biden and Capito left off, but that's not welcome news to progressive Democrats, who think too much time has already been spent trying to reach an elusive bipartisan infrastructure deal.

The Hill's Alexander Bolton has more here about the latest in the infrastructure talks.

Congress debates responses to gender pay gap

The Hill's Jackson Walker reports: The Joint Economic Committee on Wednesday debated the potential effects of legislative responses to the gender pay gap, a day after Senate Republicans blocked a House-passed bill from advancing. Democrats argued that President Biden's infrastructure plans would help industries where women make up much of the workforce, in addition to broadening out existing paid family and medical leave programs. Republicans countered that legislation could have unintended consequences and that there are other factors at play.

GOOD TO KNOW:

  • A group of Democrats on Thursday reintroduced legislation to create a "millionaires surtax" after ProPublica earlier this week published a report detailing the taxes of some of the richest Americans.
  • Mark Cuban, the billionaire owner of the NBA's Dallas Mavericks, argued that the ProPublica report did not honestly examine what would happen if the wealthiest Americans were forced to pay taxes on their investments.
  • A bipartisan group of lawmakers is calling on Congress to provide an additional $60 billion in aid to restaurants and bars.
  • The federal deficit in May rose to nearly $2.1 trillion over the first eight months of fiscal year 2021.
  • The Senate Finance Committee on Thursday advanced in bipartisan votes four of President Biden's nominees for key Treasury Department positions.

OPINION:

Senators eye $579B in new infrastructure spending, $1T plan

  Senators eye $579B in new infrastructure spending, $1T plan WASHINGTON (AP) — A bipartisan group of senators is eyeing an infrastructure deal with $579 billion in new spending as part of a $1 trillion package. It could be rolled out as soon as Thursday as negotiators try to strike a deal on President Joe Biden's top priority, according to those briefed on the plan. The 10 senators have been huddling behind closed doors, encouraged by Biden to keep working on the effort after he walked away from a Republican-only proposal this week unable to resolve differences. The senators are briefing their colleagues privately and cautioned changes could still be made. “We got a piece of paper with every line and a total,” Sen.

  • Deutsche Bank issues dire economic warning for America, by Chris Talgo, senior editor at The Heartland Institute.
  • An effective and politically viable option for corporate tax reform, by Robert Pozen, a senior lecturer at MIT Sloan School of Management.
  • Fed surprise: Top 1 percent gained less during the pandemic than lower-income Americans, by John A. Tatom, a fellow at the Institute for Applied Economics, Global Health and the Study of Business Enterprise at Johns Hopkins University.

Senate group tries one last-ditch attempt at bipartisan infrastructure deal .
A group of senators is making a last-ditch attempt at a bipartisan infrastructure bill with a key part of President Biden’s agenda hanging in the balance. Joe Manchin, D-W.V., Kyrsten Sinema, D-Ariz., Susan Collins, R-Me., and Bill Cassidy, R-La., are the latest bid to come to an agreement on an infrastructure bill, which the White House has made its next major legislative priority. Cassidy tweeted Tuesday that Biden had called him to discuss the issue, with the senator saying any “infrastructure package should and must be bipartisan.” Sen. Mitt Romney, R-Utah, another member of the group, said Tuesday they had made “good progress.

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