On The Money: US trade chief casts doubt on Canada joining new deal | House panel invites Watt accuser to testify | Brady defends GOP message on tax cuts

Happy Tuesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL–U.S. trade chief casts doubt on Canada joining new NAFTA deal: U.S. Trade Representative Robert Lighthizer on Tuesday cast doubt on the prospects of the U.S. and Mexico reaching a deal with Canada on an updated North American Free Trade Agreement (NAFTA) by the Sunday deadline.

{mosads}”The fact is, Canada is not making concessions in areas where we think they’re essential,” Lighthizer told the Concordia Summit in New York.

“We’re going to go ahead with Mexico,” he added. “If Canada comes along now, that would be the best. If Canada comes along later, then that’s what will happen.”

Why the hold-up matters: The U.S. and Mexico reached a deal last month on updating the three-country trade agreement after excluding Canada from negotiations. President Trump hopes to use fast-track trade legislation to get the deal signed before the new, leftist Mexican president Andrés Manuel López Obrador takes office in December.

The fast-track deadline requires Trump to submit the final legislation to Capitol Hill by Sept. 30, leaving just a few days to close significant policy gaps with Canada. Congress appears unlikely to approve an agreement that excludes Canada.

 

ON TAP TOMORROW

• The Securities and Exchange Commission hosts a roundtable on investor fraud, 9:30 a.m.
• House Financial Services Committee: Hearing entitled “Oversight of the SEC’s Division of Investment Management,” 10 a.m.
• Senate Commerce Committee: Hearing on safeguarding consumer data, 10 a.m.
• House Energy and Commerce Committee: Hearing entitled “Built in America: Jobs and Growth in the Manufacturing Sector,” 10 a.m.
• Senate Finance Committee: Hearing entitled “Impact of Tariffs on the U.S. Automotive Industry,” 10:30 a.m.
• House Ways and Means Committee: Hearing on the Internal Revenue Service’s taxpayer online authentication efforts, 10:45 a.m.
• Joint Economic Committee: Hearing entitled “Examining the Rise of American Earnings and Living Standards,” 10:45 a.m.
• House Financial Services Committee: Hearing entitled “Administration Goals for Major Sanctions Programs,” 2 p.m.

 

LEADING THE DAY

House panel invites Watt accuser to testify at Thursday hearing: A Federal Housing Finance Administration (FHFA) employee who has accused Director Mel Watt of sexual harassment has been invited to testify Thursday at a House hearing where Watt is scheduled to appear.

A spokeswoman for the House Financial Services Committee said Tuesday that panel leaders invited FHFA special advisor Simone Grimes to testify about her allegations that Watt made sexual advances toward her.

The Financial Services panel will hold a hearing Thursday on FHFA oversight where Watt, a former Democratic congressman, is scheduled to appear. Watt has denied Grimes’ allegations and has refused to cooperate with a federal investigation into her claims.

Grimes claimed that Watt harassed her 17 times and declined to give her a promised raise when she rejected his advances, according to an investigation report obtained by the Washington Post.

I’ve got more here on the allegations.

Keep in mind: The hearing is set to begin Thursday at 10 a.m., the same time that the Senate Judiciary Committee is scheduled to hear testimony from Supreme Court nominee Brett Kavanaugh and Stanford professor Christine Blasey Ford, who has accused Kavanaugh of sexual assault.

 

Brady defends GOP messaging on tax cuts: House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Tuesday that he still thinks House Republicans’ efforts to pass additional tax cuts are smart politically, after an internal Republican National Committee poll showed the 2017 tax law backfiring on the GOP.

The House is expected to vote this week on a package of bills known as “Tax Reform 2.0” that among other things would make permanent the 2017 tax law’s individual tax cuts.

The votes, which House Republicans have been discussing for several months, will come after Bloomberg last week reported on a poll commissioned by the RNC that found most voters think the 2017 law benefits corporations and wealthy individuals more than it helps middle-class families.

Brady told reporters Tuesday that he thinks “misleading claims” about the tax law have taken hold but that voters are positive about the economy.

“Everyone feels so much more optimistic about their job prospects, about their potential for increased paychecks and certainly now we’re seeing investments come back to America rather than jobs leaving overseas,” he said.

The Hill’s Naomi Jagoda has more here.

 

Consumer confidence at highest level in almost 18 years: Consumer confidence rose to its highest level in almost 18 years in September, according to data released Tuesday.

The Conference Board’s consumer confidence index defied analyst expectations, rising to 138.4 this month, according to results from the business research nonprofit. The index was up from 134.7 in August. 

“Consumers’ assessment of current conditions remains extremely favorable, bolstered by a strong economy and robust job growth,” said Lynn Franco, director of economic indicators at the Conference Board. “These historically high confidence levels should continue to support healthy consumer spending, and should be welcome news for retailers as they begin gearing up for the holiday season.”

 

How the Trump tax law passed: Dealing with a health care hangover: For part two in The Hill’s seven-part series on how President Trump’s tax law passed Congress, we look at how the Republican failure to enact ObamaCare repeal impacted the passage of the tax overhaul.

 

THE HILL EVENT

Join us Thursday, Sept. 27 for “The Hill’s Newsmakers Series” as Treasury Secretary Steven Mnuchin sits down for a one-on-one interview with Editor-in-Chief Bob Cusack to discuss the state of the economy, the new tax law, trade issues and other news of the day. RSVP Here.

 

GOOD TO KNOW

• French President Emmanuel Macron told the United Nations General Assembly Tuesday that his country will only strike trade deals with nations who’ve agreed to the Paris climate pact.
• The Trump administration on Tuesday targeted four members of Venezuelan President Nicolás Maduro’s inner circle with financial sanctions, including his wife and vice president.
• Sens. Jon Tester (D-Mont.) and Ron Wyden (D-Ore.) announced an effort to force a Senate vote on IRS guidance that reduces donor disclosure requirements for certain tax-exempt groups.
• The Wall Street Journal explores how Steven Mnuchin’s years-old fight with activists shapes his efforts to revamp the Community Reinvestment Act.
• Companies seeking to avoid tariffs are looking beyond China for new factories, but are finding it hard to quit the country’s dependable source of workers, land and infrastructure, according to the New York Times.
• The Commodity Futures Trading Commission is offering employees buyouts of up to $25,000, according to Bloomberg News.

 

ODDS AND ENDS

• Oil prices hit a new four-year high on Tuesday after OPEC dismissed President Trump’s calls to increase supply and lower prices.
• Attorney General Jeff Sessions met with a group of state attorneys general on Tuesday to discuss concerns about the tech industry’s practices, following  allegations from Republicans of anti-conservative bias.