Overnight On The Money – Presented by Wells Fargo – GOP Senator: It ‘s “insane” to buy Treasuries

Happy Monday 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.

Today’s Big Deal: Republicans dig deeper to oppose an increase in the debt ceiling, regardless of the consequences. We’ll also be looking at a tough road in the House for Biden massive spending bill and the latest on inflation.

But first, find out why Angelina Jolie and I was in the same building today.

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.

McConnell says GOP “united against raising debt ceiling”

Senate Democrats are generally expected to draft legislation to raise the country’s debt ceiling with a government funding measure, an effort to put maximum pressure on Republicans to back the country. increase in the borrowing limit or risk blaming the government shutdown.

But Senate Minority Leader Mitch McConnell (R-Ky.) Said on Tuesday that Republicans vote in unison to defeat any government funding bill that would also raise the country’s debt ceiling.

“Republicans are united against raising the debt ceiling,” McConnell said when asked after a GOP conference meeting if Republicans would vote for a funding stopgap that expands government borrowing power federal, which should be sold out in October.

McConnell explained that Republicans oppose raising the debt ceiling “not because it doesn’t need to be done,” but because it would pave the way for Democrats to pass an infrastructure bill. human resources of 3.5 trillion dollars which would cancel out a large part of the old President TrumpDonald Trump Biden opposes Newsom on eve of recall: “Nation’s eyes are on California” On The Money: House Democrats cut tax hikes Biden Abortion providers warn the “chaos” if the Supreme Court overturns Roe v Wade MOREthe 2017 tax cut.

Checking the facts:

  • Raising or suspending the debt ceiling does not in itself authorize or prohibit new spending, nor does it increase or decrease the amount of the national debt.
  • Raising the debt limit simply allows the United States to issue new Treasury bills, which it cannot do at the moment, and generate cash to pay for expenses already approved by Congress. .
  • The United States has never defaulted on its debt, and experts say any breach of the federal government’s confidence and credit could trigger a financial system collapse.
  • Countries, financial institutions and investors hold trillions of dollars in treasury bills that could drop in value if the United States fails to stay solvent.

“I would like every Republican senator to answer the question, ‘Are they prepared to let the government default? “” Asked the majority leader in the Senate. Charles SchumerChuck Schumer Schumer points to debt incurred under Trump to stress need for bipartisan action Warner says $ 500 billion package “does not respond” to housing assistance Manchin says he cannot support plan in spending of Biden 500 billion PLUS (DN.Y.) on Tuesday.

“Leader McConnell, as I said, is playing dangerous political games by not intervening as he asked us to and we did when Trump was president,” he added.

Despite everything, other Republicans, including the moderate Senses. Mitt RomneyCan Willard (Mitt) Mitt Romney Biden make a comeback? What history tells us (and doesn’t teach us) Republican leaders misjudged January 6 committee New Hampshire Democrat wins GOP seat in House of Commons MORE (Utah) and Rob portmanRobert (Rob) Jones PortmanTrump Administration Trade Representative Endorses JD Vance in Ohio Senate Race Crypto Debate Set to Come Back in Force GOP Hopes Fight for Trump’s Favor in Race to Ohio Senate PLUS (Ohio) on Tuesday also ruled out voting for a government funding resolution that also expands the country’s borrowing power.

And that’s why Sen. Rick Scott (R-Fla.) Told reporters earlier today that he would be “stupid”To buy treasury bills – an asset considered almost as safe as cash – in the middle of the stalemate.

“If you buy treasury bills today, [you] don’t understand that US taxpayers are unwilling to raise taxes to pay for this, ”Scott said, although polls have shown strong support for some aspects of Biden’s tax plan

“If you’re foolish enough right now to buy this stuff, you’re foolish”

I have more on the showdown here.

PRESENTED BY WELLS FARGO

DC restaurant rebuilds with help from nonprofit and Wells Fargo

Flip-It LJ Diner owner Sandra Foote didn’t think her Columbia Heights restaurant could survive COVID-19.

Wells Fargo’s Open for Business Fund gave a grant to the District Bridges nonprofit, which then helped Sandra cover her bills.


LEAD THE DAY

Home is not an easy road for Biden, Democrats on 3.5-ton package

Democrats say pushing House through $ 3.5 trillion social spending plan is going to be a tough road, with President Nancy PelosiNancy PelosiWashington Steps Up Security Ahead of September 18 Rally How Social Media Fuels Political Polarization in America – What To Do About It The Hill 12:30 PM Report – Brought to you by Facebook – Man with machete, swastika in front of the DNC headquarters before the weekend rally of January 6 CONTINUED (D-Calif.) Being able to afford only three defections to pass the measure.

While debate in the Senate has received more attention, centrists are also vocally suspicious of the lower house plan, while progressives are not at all interested in bending.

Some are already urging in private President BidenJoe Biden Biden opposes Newsom on eve of recall: “Nation’s eyes are on California” Biden turns to climate to sell economic program Family of American held hostage by Taliban urges administration to fire the peace negotiator in Afghanistan MORE be even more involved in the package negotiations with Pelosi, arguing that support for his own agenda will be crucial to get the bill passed. Hanna Trudo from the Hill explain here.

A MESSAGE FROM WELLS FARGO

How a DC florist is rebuilding themselves with PPP loans

Le Printemps flower shop in DC was able to stay open during the pandemic with two Paycheck Protection Program (PPP) loans booked through Wells Fargo.

85% of PPP loans taken out through the bank went to companies with less than 10 employees.

MAYBE YOU CAN BUY MY CAR?

Consumer prices rose 0.3% in August and 5.3% in the past 12 months, according to data released Tuesday by the Labor Department.

Monthly growth in the Consumer Price Index (CPI), a closely watched inflation indicator, fell for the second month in a row, after rising 0.5% in July. (Economists expected the CPI to rise 0.4% last month.)

Annual growth in the CPI – one of many ways to measure annual inflation – also fell from 5.4% in July, the highest rate since August 2008.

What happened?

  • Prices for airline tickets, used cars and trucks, and auto insurance all fell in August after soaring through most of the spring and summer.
  • The used car CPI, which was behind much of the summer’s rise in inflation, fell 1.5% in August, but is still higher at 31 , 9% at the same point in 2020.

I break it down here.

THE GALA DRESS OF THE AOC MET, BUT IN THE LEGISLATION

House Democrats’ plan would impose biggest tax hikes on top earners: analysis

The House Democrats’ tax proposals would impose the largest tax increases on households with incomes of $ 1 million or more, according to an analysis released Monday by the Joint Committee on Taxation (JCT).

The analysis takes into account the Democrats’ proposals to increase taxes for high-income individuals and businesses and to expand the expansion of tax credits for low- and middle-income households.

  • In 2023, households with incomes over $ 1 million would see their federal taxes increase by 10.6% and their average tax rate would drop from 30.2% under current law to 37.3%.
  • Households with incomes below $ 200,000 would see their taxes cut, the JCT said.

Much of the Democrats’ proposed extension of the child tax credit would expire after 2025 – at the same time that the individual tax provisions of the Republican Tax Act of 2017 expire. Naomi has details here.

Good to know

Chairman of the Securities and Exchange Commission Gary GenslerGary Gensler On The Money – Democratic Tax Divide Coinbase Says SEC To Investigate Its Crypto Loan Product Climate Hawks Press Biden To Replace Fed Chairman PLUS said on Tuesday that the rapid proliferation of cryptocurrencies and related investment products looked like the wild west. “

Here’s what else we have on our minds:

  • The opening weekend of the 2021 NFL season saw a record number of players place bets online as more and more states move towards legalizing sports betting.
  • Job searches are expected to increase in the fall as more schools resume learning in person Amid the ongoing pandemic, Indeed’s hiring lab has planned in its latest investigation.

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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