Happy Tuesday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: digital-stage.thehill.com/newsletter-signup.
Today’s Big Deal: President Biden is on track to raise the debt ceiling by the end of the night. We’ll also look at the partisan blow-up at the Federal Deposit Insurance Corp. and the fallout over the failed nomination of Saule Omarova, President Biden’s pick for a top bank watchdog.
But first, do you want to buy a pair of digital shoes?
For The Hill, we’re Sylvan Lane and Aris Folley. Write us at slane@digital-stage.thehill.com or @SylvanLane and Aris Folley at afolley@digital-stage.thehill.com or @ArisFolley. Reach our colleague on the Finance team Naomi Jagoda at njagoda@digital-stage.thehill.com or @NJagoda
Let’s get to it.
Dems raise debt ceiling after filibuster deal
- Senators voted 50-49 along party lines to raise the debt ceiling by $2.5 trillion.
- Though GOP senators supported legislation last week setting up the simple majority vote, none voted for the bill to increase the debt ceiling.
What comes next: The House is expected to vote to raise the debt ceiling as soon as Tuesday. Treasury Secretary Janet Yellen has said the U.S. may be unable to stave off a default after Wednesday without action to increase the nation’s borrowing limit.
The background: Democrats unveiled the legislation to increase the debt ceiling by $2.5 trillion hours before Tuesday’s vote. Senators estimate it would set the next debt ceiling cliff for sometime in 2023, getting Congress past the midterms.
Jordain Carney breaks it down here.
A MESSAGE FROM CITI
Tackling the startup world’s gender, race and ethnic funding gap.
With our $200 million Impact Investment Fund we are seeking opportunities to invest in businesses that are led or owned by women and minority entrepreneurs, helping to create equitable access to venture capital funding.
LEADING THE DAY
FDIC chief spikes Democratic vote on bank merger guidelines
The Trump-appointed head of the Federal Deposit Insurance Corp. (FDIC) and Democratic members of the bank regulator’s board clashed Tuesday over who sets the agency’s agenda, with Democrats on the board seeking to buck the chair.
FDIC Chair Jelena McWilliams rejected a request from Consumer Financial Protection Bureau Director Rohit Chopra—one of three Democratic members of the FDIC board—to take up a request for comment approved by him and his Biden-appointed colleagues last week.
During a live-streamed remote meeting of the FDIC board, Chopra asked McWilliams to include a record of the Thursday vote in the agency’s minutes. McWilliams declined, saying she was not legally authorized to consider the rogue vote an official act of the agency.
I have the details here.
NOT ‘A WINNABLE FIGHT’
Failed watchdog nomination angers progressives
President Biden’s failed nomination of a top bank watchdog has left progressives furious and consumer advocates concerned about the future of a key agency.
Biden is on track to finish the first year of his term without a full-time leader of the Office of the Comptroller of the Currency (OCC), an independent agency with broad power over national banks.
Saule Omarova, whom Biden nominated as comptroller of the currency in September, withdrew from consideration last week shortly after weeks of attacks on her roots in the former Soviet Union from Republican lawmakers, but also after several Democratic senators raised concerns about her policy views. She was broadly supported by liberal lawmakers and a wide range of groups who’ve long called for a culture change at the OCC.
Read more here.
PRODUCER PRICES SEE RECORD GROWTH
Producer prices rose record 9.6 percent annually in November
Prices charged by producers jumped in November and rose nearly 10 percent over the past year, according to data released Tuesday by the Labor Department.
The producer price index (PPI) for final demand, which tracks prices charged for goods and services that are not a part of other products, rose 0.8 percent in November on a seasonally adjusted basis, accelerating from a 0.6 percent increase in October.
The PPI for final demand rose 9.6 percent annually in November, marking the fastest annual growth in the index since the Labor Department began calculating in 2010. Without food, energy and trade services, PPI for final demand rose 0.7 percent in November and 6.9 percent annually, another record.
Read more here.
A MESSAGE FROM CITI
Tackling the startup world’s gender, race and ethnic funding gap.
With our $200 million Impact Investment Fund we are seeking opportunities to invest in businesses that are led or owned by women and minority entrepreneurs, helping to create equitable access to venture capital funding.
Good to Know
Elon Musk announced on Tuesday that Tesla would accept dogecoin, a popular cryptocurrency, for Tesla merchandise.
Here’s what else have our eye on:
- The IRS announced Tuesday that it has extended tax deadlines for individuals and businesses in parts of Kentucky, following recent deadly tornadoes.
- JPMorgan employees in Manhattan who are not vaccinated against the coronavirus will have to work from home, according to a company memo sent to employees this week and seen by The Hill.
That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.
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