Overnight Finance: Trump signs Russia sanctions bill, rips Congress | Trump plan would cut legal immigration | Senate confirms labor board pick | House Budget chair running for governor | Regulator takes step to change ‘Volcker Rule’

Trump signs Russia bill, rips Congress in statement: President Trump is ripping Congress in an unusual statement criticizing the Russian sanctions bill, which he signed into law on Wednesday.

Trump said in two separate statements that while he favored the policy objectives in the legislation overwhelmingly approved by Congress, he believes the new law encroaches on his power. 

Trump also repeatedly writes that he is a better negotiator than Congress, which he notes has been unable to approve ObamaCare repeal.
“I built a truly great company worth many billions of dollars,” Trump said in one of the statements. “That is a big part of the reason I was elected. As President, I can make far better deals with foreign countries than Congress.”

{mosads}

Trump said he was signing the bill despite what he said was its flaws for the sake of “national unity.”

“It represents the will of the American people to see Russia take steps to improve relations with the United States,” he said. “We hope there will be cooperation between our two countries on major global issues so that these sanctions will no longer be necessary.”

Trump’s irritation with the bill appeared focused on his belief that it would make his ability to negotiate with Russian President Vladimir Putin and other world leaders more difficult. The Hill’s Jonathan Easley reports: http://bit.ly/2u5pZhv.

 

Trump, GOP senators unveil measure to cut legal immigration: President Trump on Wednesday teamed up with two conservative Republican senators to roll out new legislation aimed at dramatically curbing legal immigration to the United States, a key Trump campaign promise.

Sens. Tom Cotton (R-Ark.) and David Perdue (R-Ga.) have been working with White House officials to revise and expand a bill released earlier this year that would halve the number of people who receive legal permanent residence over a decade.

The senators joined Trump at a White House ceremony to announce the measure.

The president told reporters in the Roosevelt Room that the measure “would represent the most significant reform to our immigration system in a half a century.” 

They say the legislation would move the United States to a “merit-based” immigration system and away from the current model, which is largely based on family ties. The Hill’s Jordain Carney and Jordan Fabian explain: http://bit.ly/2u1vgm4.

 

Senate confirms controversial Trump pick to labor board: The Senate on Wednesday confirmed one of President Trump’s nominees to fill one of the vacancies on the National Labor Relations Board (NLRB).

The Senate in a 50-48 party-line vote approved the nomination of Marvin Kaplan to the board that’s responsible for resolving labor disputes and protecting workers’ collective bargaining rights in the private sector.

Trump’s nomination of Kaplan had sparked controversy, with Democrats questioning his knowledge of labor law and whether he would defend workers’ rights on the board.

Before a committee vote earlier this month, Sen. Patty Murray (D-Wash.) raised concerns about his lack of legal experience before the NLRB. During his confirmation hearing, she said he confused basic labor issues and decisions.

On the Senate floor Wednesday, Sen. Elizabeth Warren (D-Mass.) criticized Kaplan for the time he spent as a House staffer, where he worked on measures to strip workers of their right to organize and join unions in their workplace. The Hill’s Lydia Wheeler has more: http://bit.ly/2u1SoRs.

 

Banking regulator seeks input on changing controversial Volcker Rule: A top banking regulator on Wednesday asked for feedback on how to amend a controversial provision of the Dodd-Frank Act intended to stop risky trading at banks and investment firms.

Acting Comptroller of the Currency Keith Noreika opened the public comment process for his agency’s efforts to change the “Volcker Rule,” a regulation banning banks from investing on behalf of themselves, not their clients.

The rule, named after former Federal Reserve Board Chairman Paul Volcker, was intended to crack down on risky “proprietary” trades, in which banks invest their own capital to boost revenue. But banks of all sizes have complained that the rule isn’t specific enough about which investments are banned and puts a compliance burden on banks that pose little risk to the financial system.

The Office of the Comptroller of the Currency (OCC) said it “invites input on ways to tailor the rule’s requirements and clarify key provisions that define prohibited and permissible activities.” I tell you what’s ahead: http://bit.ly/2u5jCe3.

 

Budget chairwoman enters Tennessee governor’s race: Rep. Diane Black (R-Tenn.) officially threw her hat into the Tennessee governor’s race on Wednesday, setting off a scramble to fill her position as chairman of the House Budget Committee.

Under a GOP conference rule known as the “Paul Ryan rule,” so named for the House Speaker, Black would have to step down from the chairmanship to run. Black could seek a waiver from the 2014 rule, but there is little enthusiasm for it among her Republican colleagues.

It’s a busy time for the Budget panel, as the House has been unable to reach a deal on a budget for 2018 that is critical to the GOP effort to reform the tax code. Republicans plan to include fast-track budget reconciliation rules covering tax reform in their blueprint, which would prevent Democrats in the Senate from filibustering tax legislation.

Rep. Bill Johnson (R-Ohio) is already seeking Black’s position. He has begun reaching out to some members of the powerful Steering Committee that will choose the next chairman, GOP sources said.

Other obvious choices from the committee may not put themselves in the running. Committee Vice Chairman Todd Rokita (R-Ind.) is rumored to be eyeing a Senate run. The Hill’s Scott Wong and Niv Elis have the scoop: http://bit.ly/2u4M3Jc.

 

But… Black plans to keep Budget chair ‘for the time being’ House Budget Committee Chairwoman Diane Black (R-Tenn.) says she intends to keep her chairmanship for now despite announcing plans Wednesday to run for governor in her home state.

“She will remain chairman for the time being and is focused on getting this budget across the finish line,” a spokesman for Black said.

Black ushered the House Budget resolution through the committee, but so far has not garnered enough support to pass it on the House floor.

It is unclear exactly when she would be required to give up her gavel. The House is in recess until September, and the Republican Steering Committee, which makes the call on waivers and new chairmen, will also be out until then: http://bit.ly/2u5GqdL.

 

Happy Wednesday and welcome to Overnight Finance. 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@digital-stage.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

Stocks surge briefly to new 22,000 record: The stock market soared to a new record on Wednesday — eclipsing 22,000 — before retreating.

The Dow Jones Industrial Average, which hovered slightly below the new milestone, got a boost from surging Apple stock.

President Trump has touted the stock market’s growth during his six months in office: http://bit.ly/2u4UIvd.

 

Senate Dems unveil trade agenda: Senate Democrats are trying to seize the reins from President Trump on trade, launching a set of proposals they say will save jobs and boost growth while White House plans sputter.

Senate Democratic Leader Chuck Schumer (N.Y.) along with five of his colleagues, on Wednesday unveiled seven trade tenets as part of their recently overhauled economic agenda aimed at reconnecting with voters who bolted for Trump’s ticket in last year’s elections.

“The problem is President Trump has talked a good game and done virtually nothing on trade except study it, he even backed off on steel and aluminum,” Schumer told reporters during a press conference on Capitol Hill.
“We need action,” he said.

“If President Trump wants to work with us to get these things done, good, we need a better deal for American workers, period.” Here’s more from The Hill’s Vicki Needham: http://bit.ly/2u51bWN/

 

What we know and don’t know about the GOP tax-reform plan: Congressional Republicans and the White House are escalating their efforts to overhaul the tax code following the Senate’s failure to pass healthcare legislation.

Key players released a statement last week — even before the ObamaCare repeal setback — describing shared tax-reform principles, and Republicans are spending the August recess working to get voters behind their ideas.

The joint statement from administration officials, congressional GOP leaders and the chairmen of the tax-writing committees lays out broad goals for tax legislation, but details haven’t been finalized.

Here’s what we know about Republicans’ tax-reform efforts, and where there are still gray areas, from The Hill’s Naomi Jagoda: http://bit.ly/2ulMQk8.

 

OMB director: Tax reform looks ‘weaker’ with Democrats on it:  During an interview on “Fox & Friends,” White House Budget Director Mick Mulvaney was asked if he thinks Republicans can get tax reform passed without needing Democrats’ votes.

“You have a choice. You can either try and do it with 50 votes in the Senate, using what’s called budget reconciliation, or 60 votes in the Senate without,” he said.

“But my gut is that a tax bill looks a lot weaker — a lot less likely to get us to 3 percent economic growth — if we’ve got 8, 10, 12, 14 Democrats on it.”

Mulvaney said tax reform is necessary to get the American economy back at 3 percent economic growth: http://bit.ly/2u58PAs.

 

Freedom Caucus chairman wants corporate tax rate in the teens: House Freedom Caucus Chairman Mark Meadows (R-N.C.) said he wants Congress to enact a corporate tax rate that’s in the teens in order to go “big and bold” on tax reform.

“I don’t want to nibble around the edges,” Meadows said Wednesday at an event hosted by Americans for Prosperity (AFP), a group backed by the GOP mega-donors Charles and David Koch.

“I think that something with a one in front of it, whether it’s 15 or 17 or 18 [percent], that’s where we need to be,” he added.

Republicans broadly agree about wanting to lower the corporate tax rate, which is currently 35 percent, but they don’t have consensus on what the new rate should be.

While the White House is aiming for a corporate tax rate of 15 percent, Senate Finance Committee Chairman Orrin Hatch (R-Utah) said that rate is unlikely and that it would be challenging to lower the rate to even 25 percent: http://bit.ly/2u5nhZb.

 

Committee leaders: Tax reform should benefit small businesses: The leaders of the Senate Small Business and Entrepreneurship Committee are urging their colleagues to make sure that any tax-reform legislation taken up by the Senate improves the tax code for small businesses.

“Small businesses are the backbone of our economy, creating two out of every three net new jobs in the United States,” Committee Chairman Jim Risch (R-Idaho) and ranking member Jeanne Shaheen (D-N.H.) said in a letter Wednesday to the leaders of the Senate’s tax-writing committee.

“That is why it is essential that any tax reform considered by the Senate take into account the unique burden that the federal tax code imposes on small businesses and ensure that Main Street businesses benefit from tax reform,” they wrote.

The letter comes after congressional GOP leaders and Trump administration officials released a statement last week outlining broad goals for tax reform. That statement called for a “lower tax rate for small businesses so they can compete with larger ones.” http://bit.ly/2u1u9CJ.

 

Thune: Debt ceiling action ‘unlikely’ before September: Sen. John Thune (R-S.D.), the No. 3 Republican in the Senate, on Wednesday said it’s doubtful that the upper chamber will be taking action on the debt ceiling before September.

“I think it’s probably more of a September strategy,” Thune said, adding that action during the next two weeks was “unlikely.” 

When Senate Majority Leader Mitch McConnell (R-Ky.) announced that the Senate would extend its session for the first two weeks of the August recess, he cited the debt ceiling as one of the main action items on the Senate’s to-do list.

Treasury Secretary Steven Mnuchin had repeatedly urged Congress to act on the debt ceiling before August, and last week pegged Sept. 29 as the last day to address the issue before the U.S. Treasury runs out of ways to pay its bills: http://bit.ly/2u4Xb8T.

 

US businesses added 178,000 jobs in July: U.S. businesses maintained a steady pace of hiring in July as employers remained upbeat about the direction of the economy despite legislative uncertainty in Washington.

Private-sector employers added 178,000 jobs last month, down from 191,000 in June, as the labor market continued an impressive run of tightening, according to the monthly ADP employment report released on Wednesday.

Education, healthcare and business services experienced the largest gains last month.
The energy sector, including mining, which has been gradually improving, added 3,000 jobs.

“We have to be impressed by how well this job market is performing,” said Mark Zandi, chief economist of Moody’s Analytics: http://bit.ly/2u4LOxM.

 

Good reads from around the web: 

• The Wall Street Journal ($): Rosengren: Tight labor markets justify Fed plans to keep raising rates
• Reuters: U.S. orders JPMorgan Chase to pay $4.6 million over checking account reports
• The Washington Examiner: FDIC regulator warns senators: Don’t lower bank capital standards
• The Wall Street Journal ($): Struggling Americans once sought greener pastures–now they’re stuck
• American Banker ($): Is the Fed’s community banker seat worth the trouble?

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