OVERNIGHT MONEY: Froman set for Finance nod

They also each said that the nation’s trade agenda is central to creating jobs and boosting economic growth and that Froman will be responsible for raising the level of engagement and seeing the U.S. through to high-level trade deals. 

Froman is currently the assistant to the president and deputy national security adviser for international economics, and has played a central role in the formulation and implementation of trade policies since 2009. 

{mosads}While committee members saw eye to eye, in most cases, on trade policy there were questions from several members about funds Froman has and still holds in the Cayman Islands. 

Panel member Sen. Chuck Grassley (R-Iowa) submitted several questions on the nominee’s offshore accounts and carried interest plans. 

“The president has nominated three Cabinet-level nominees in recent months who benefited from the offshore accounts the president criticized,” Grassley said after the hearing. 

“The White House and the nominee should help Congress and the public understand the president’s double standard.” 

Senate Finance Committee lawmakers took brief aim at the financial holdings of Obama’s nominee to lead the trade office during a nomination hearing on Thursday. 

During the hearing, Baucus and Hatch each grilled Froman on his holdings — about $500,000 in an investment fund he opened while working for Citigroup several years ago. 

Froman argued that all taxes have been paid on the account and that he hasn’t received any specific tax benefit from them. 

“All earnings, gains or losses, are passed on to individual investors and I paid every penny of taxes on the fund.”

Once he clears Senate Finance, the upper chamber would need to get hold a vote before the upcoming July 4 recess to ensure he is in place to negotiate the nation’s trade agenda. 

WHAT ELSE WE’RE WATCHING 

Front and center: After passing the farm bill 66-27 on Monday the Senate will shift gears into work on comprehensive immigration reform. Senate Majority Leader Harry Reid (D-Nev.) has vowed to complete work before the rapidly approaching July 4 recess. 

In that same vein, President Obama will delivers remarks on Tuesday morning in support of the Senate’s bipartisan immigration reform bill with business and labor leaders, law enforcement and religious and faith leaders. 

In defense of Defense: Senate appropriators will hear from Defense Secretary Chuck Hagel and Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey on Tuesday to explore the Pentagon’s funding request, a base budget of $526 billion — $52 billion above the budget caps under sequestration in 2014.

Dempsey has said that he budget was built for an “uncertain future” in light of billions in scheduled across-the-board spending cuts. 

“It does impose less reduction and gives us more time,” he said. “Nevertheless, uncertainty persists about what the top line will be for this and any future budget.”

Defense authorization: Five Senate Armed Services subcommittees will mark up the 2014 defense authorization on Tuesday with the aim of the full committee wrapping up the bill by week’s end. The big news is that several of the markups are open, although haggling over the final bill will take place behind closed doors.

House lawmakers authorized $638 billion in defense spending in their version of the bill. That legislation is headed to the full House for a vote next week. The bill provides an increase of $5.1 billion for the war in Afghanistan from the Pentagon request, and it sets base spending at $526.6 billion, the same amount requested by President Obama. 

Swap data: The House Rules Committee will put together a rule for legislation, which is expected to pass this week, designed to ensure that U.S. regulators can continue sharing “swap data,” or records of various financial hedge funds that various companies make. The Securities and Exchange Commission has told Congress that it favors this change, which would remove a barrier to foreign access to U.S. swap data while helping the United States get access to data held in global trade repositories.

Failure to change current law puts at risk the ability of regulators around the world to share swap data information and get a full picture of the financial risks that might be piling up. 

The House is expected to pass the bill as early as Wednesday. 

LOOSE CHANGE

Pritzker approved: The Senate Commerce, Science and Transportation Committee unanimously approved on Monday the nomination of Penny Pritzker to be secretary of Commerce. 

Panel Chairman Jay Rockefeller (D-W.Va.) urged the Senate to act quickly to approve the nomination. 

ECONOMIC INDICATORS 

Wholesale Inventories: The Commerce Department will release its wholesale trade report for April that includes sales and inventory statistics from the second stage of the manufacturing process. The sales figures say close to nothing about personal consumption and therefore do not move the market. 

WHAT YOU MIGHT HAVE MISSED

— Lew: Werfel’s job title at IRS changes temporarily

— Obama taps Furman as top economic adviser

— Healthcare cost top concern for manufacturers

— S&P upgrades outlook for US credit

— IRS staff changes continue

— SEC reviewing guilt-free settlement policy

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