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2018年7月17日 星期二

On The Money: Fed chief lays out risks of trade war | Senate floats new Russia sanctions amid Trump backlash | House passes bill to boost business investment

 
 
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Happy Tuesday and welcome back to On The Money, where we're very mad about not getting invited to the wall of donuts at the All-Star Game tonight. 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@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

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

 

THE BIG DEAL--Fed chief lays out risks of trade war: Federal Reserve Chairman Jerome Powell told lawmakers Tuesday that mounting trade tensions between the United States and key economic partners could pose serious risks to the U.S. and global economy.

In testimony at the Senate Banking Committee, Powell was cautious in his remarks and tried to avoid commenting directly on President Trump's policies, even as lawmakers from both parties pressed him on how deeply the U.S. could be harmed in a trade war.

But Powell said escalating tariffs between the U.S. and others had already stunted business growth even though it was still too early to know the final impact.

"If it results in lower tariffs for everyone, that will be a good thing for the economy," he said of Trump's trade policy. "If it results in a higher tariffs across a broad range of goods and services that remain that way for a long time, that will be bad for our economy and other economies, too."

Powell, a Republican, also defended the global trading system that Trump has sought to upend, and he advocated for the eventual removal of tariffs. I'll tell you more here about Powell's testimony and the questions he faced from lawmakers.

 

Why it matters:

  • Lawmakers, business groups and agriculture exporters have expressed worries that Trump's tariffs on steel, aluminum and Chinese goods -- and the retaliation they spur -- could cause widespread economic harm.
  • Powell and Fed officials have noted recently that U.S. businesses have abandoned expansion plans due to rising costs and growing uncertainty driven by tariffs.
  • Powell insisted that trade issues are not within the bank's mandate, but he said that high tariffs and trade barriers are typically harmful.
  • The EU, Mexico, Canada and China have targeted agricultural and manufactured goods produced mainly by states that are home to Trump's electoral base. The retaliatory tariffs they imposed on corn, soybeans, cotton, pork, apples and other major crops could cause severe losses for U.S. farmers.

 

What comes next: Powell will testify before the House Financial Services Committee, and will likely face many of the same questions. The panel grilled Treasury Secretary Steven Mnuchin early last week and demanded answers from him about the goals and length of Trump's trade showdowns.

 

ON TAP TOMORROW

  • U.S. Chamber of Commerce hosts event on financial technology, 9 a.m.
  • Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee on the Fed's semiannual monetary policy report, 10 a.m.
  • Senate Finance Committee: Hearing on trade and commerce at U.S. ports of entry, 10 a.m.
  • House Financial Services Committee: Hearing entitled "The Future of Money: Digital Currency," 2 p.m.
  • House Ways and Means Committee: Hearing on the effects of tariffs on U.S. agriculture and rural communities, 2 p.m.

 

LEADING THE DAY

Senate floats new Russia sanctions amid Trump backlash: The Senate is considering taking new legislative action to condemn Russia's election meddling as pressure builds on lawmakers to counter President Trump's much-maligned rhetoric this week.

GOP senators are discussing passing a resolution or even new sanctions just days after 12 Russian intelligence officials were indicted for interfering in the 2016 presidential election and Trump caused uproar by refusing to denounce Moscow's election meddling during a summit in Helsinki.

Pressing forward with sanctions legislation would likely spark a high-profile showdown with Trump months before the November midterm elections – marking a rare election-year break between the White House and Republicans on Capitol Hill. But lawmakers are under pressure to act in the wake of Trump's comments. The Hill's Jordain Carney tells us why here

 

Hatch threatens legislative action to rein in Trump tariffs: Sen. Orrin Hatch (R-Utah) on Tuesday blasted President Trump's trade policies and vowed to move forward with legislation that would rein in his trade authority if the imposition of tariffs don't subside. 

The Senate Finance Committee chairman urged the Trump administration to rethink its global trade strategy, arguing that billions in tariffs are hurting U.S. consumers and businesses and walling off foreign markets from American exports. 

"If the administration continues forward with its misguided and reckless reliance on tariffs, I will work to advance trade legislation to curtail presidential trade authority," Hatch said during a speech on the Senate floor.

"I am discussing legislative options with colleagues both on and off the Finance committee and I will continue to do so," he said. The Hill's Vicki Needham tells us what to expect here.

 

House passes bipartisan bill to boost business investment: The House on Tuesday passed a bipartisan package of 32 bills intended make it cheaper and easier for small businesses and startups to access capital markets and woo investors.
Lawmakers voted almost unanimously to pass the JOBS and Investor Confidence Act one day after the leaders of the House Financial Services Committee announced a deal following months of markups and negotiations.

The package, named after the 2012 bill passed under former President Obama, contains several dozen bills focused on capital markets regulations, all of which passed the Financial Services panel or House with meager resistance.

The deal also rolls back some Dodd-Frank Act banking rules with provisions that have also earned wide bipartisan support.

"This is going to be an important day for small business," said Rep. Jeb Hensarling (R-Texas), chairman of the Financial Services Committee. "This is going to make a difference ultimately because small businesses will one day become big businesses." I'll tell you more about what's inside the deal here.

What comes next: The package now faces an uncertain future in the Senate. Hensarling has said that Senate leaders have promised to hold a vote on the House measure, but the bill would need support from 10 Senate Democrats to pass.

Hensarling secured a pledge from Senate leaders to take up the House deal when he promised to support the upper chamber's bipartisan Dodd-Frank rollback, which President Trump signed in May.

Muted support from the White House raised further questions about the bill's future. Press Secretary Sarah Huckabee Sanders said President Trump congratulated the House for passing the bill, but would seek "several technical and substantive changes to the legislation."

 

MARKET CHECK: Reuters: "Wall Street stocks rose on Tuesday, with the Dow Jones Industrial Average posting its fourth consecutive session of gains after Federal Reserve Chairman Jerome Powell expressed an optimistic U.S. economic view and solid earnings bolstered the outlook for a robust reporting period.

"The Dow Jones Industrial Average rose 55.53 points, or 0.22 percent, to end at 25,119.89, the S&P 500 gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 percent, to 7,855.12."

 

GOOD TO KNOW

  • House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Tuesday that he expects the House to vote on a second round of tax cuts in September.
  • A bipartisan group of senators on Tuesday introduced a package of bills designed to make it easier for Americans to save for retirement.
  • The White House's midyear budget projections see federal deficits surpassing $1 trillion in 2019.
  • Senate Finance Committee ranking Democrat Ron Wyden (D-Ore.) on Tuesday said he will vote against President Trump's nominee to lead the IRS, Charles Rettig, unless he promises to undo guidance the agency released late Monday reducing donor disclosure requirements for certain tax-exempt groups.
  • The attorneys general in New York, Connecticut, Maryland and New Jersey on Tuesday filed a lawsuit against the Trump administration challenging the constitutionality of the new cap on federal deductions for state and local taxes in the 2017 tax overhaul.
  • The European Union and Japan signed an agreement on Tuesday that will lift close to 100 percent of tariffs on products exchanged between the two.

 

ODDS AND ENDS

  • The Consumer Financial Protection Bureau is accusing the Department of Education of getting in the way of its lawsuit against student loan giant Navient.
 
 
 
 
 
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SearchCap: Google Image search, Google AMP Stories, picking link partners & more

 


 
Featured story
 

Google Image search updates referrer URL to help publishers track image search traffic

 

Jul 17, 2018 by Barry Schwartz

In coming months, the Google Image search referral URL will be changing. Make sure your software tools are ready.

 
From Search Engine Land
 
15 checks you should make when choosing a link partner
  Jul 17, 2018 by Julie Joyce

How can you best evaluate a site to determine whether it's a good linking partner? Contributor Julie Joyce outlines 15 things you need to check including site hacks, poor quality content, traffic and more.

 
Google releases AMP Stories v1.0 with new features, including an ads beta for DFP users
  Jul 17, 2018 by Ginny Marvin

AMP Stories is now available to all developers.

 
Google expands job search to the UK
  Jul 17, 2018 by Barry Schwartz

After launching Google job search features a year ago in the US, Google has expanded it to the UK and several other countries.

From Marketing Land
 
Report: After purging locked accounts from follower lists, Twitter's own account takes the biggest hit
  Jul 17, 2018 by Amy Gesenhues

Most accounts with significant follower numbers lost less than 3% of their following, although some lost up to 5%.

 
Snapchat partners with 4 news discovery platforms to help push content beyond the app
  Jul 17, 2018 by Amy Gesenhues

Storyful, NewsWhip, SAM Desk and Tagboard will now be able to share Snapchat content via the app's Story Kit API.

 
Amazon trumpets Prime Day success despite myriad glitches and problems
  Jul 17, 2018 by Greg Sterling

But analyst firm says Prime membership growth has dropped from 35% to 12% and will continue to slow.

 
Rent, buy or train? How to accelerate strategic marketing operations
  Jul 17, 2018 by Debbie Qaqish

Selecting martech stack elements is one thing, but finding the humans to use them is quite another. Contributor Debbie Qaqish discusses challenges and solutions MO leaders have in finding key hires.

 
Connect with passionate marketers — rates increase next week!
  Jul 17, 2018 by Marketing Land

There are others like you. We've met tens of thousands of them. People who share your passion for harnessing the potential of modern marketing and marketing technologies. People who implement best practices… and occasionally color outside the lines to get results. Discover, learn and connect with them at MarTech® October 1-3 in Boston. 

 
Clinch launches tool to dynamically generate ads for Instagram stories
  Jul 17, 2018 by Barry Levine

The firm says this is the first such tool to automate the creation and optimization of media ads for Instagram Stories at scale.

 
Salesforce adds more intelligence with Datorama purchase
  Jul 17, 2018 by Barry Levine

The AI-powered marketing analytics platform will help the CRM leader generate insights from multiple data streams.

 
OneTrust releases first free assessment tool for the new California privacy law
  Jul 17, 2018 by Barry Levine

The company is adding the emerging California privacy requirements, as well as those of other states and countries, to its GDPR-ready Compliance suite.

 
Amazon crashes on Prime Day, creating a less than prime shopping experience
  Jul 16, 2018 by Amy Gesenhues

The e-commerce site began experiencing problems shortly after its 3:00 p.m. ET start time.


 
 

SMX East returns to NYC, better than ever: October 24-25, 2018

Search Engine Land's SMX East is coming to the Big Apple October 24-25. You'll get two laser-focused days of the SEO and SEM topics that matter most to you. Join us for actionable tactics, exceptional networking, top notch amenities, and demos from market-defining vendors. View rates and register today!

 

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Overnight Energy: Fewer than half of school districts test for lead | Dems slam proposed changes to Endangered Species Act | FEMA avoids climate change when discussing plan for future storms

 
 
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FEWER THAN HALF OF SCHOOLS TEST FOR LEAD IN DRINKING WATER: A government watchdog report released Tuesday found that in 2017 fewer than half of all school districts tested their drinking water for lead levels.

The schools that tested for lead serve 35 million students, and the Government Accountability Office (GAO) report found that 37 percent of those tests found elevated lead levels.

GAO opened the investigation following requests from Democrats in Congress who wanted the watchdog to look into state and school district practices for lead testing and remediation efforts.

Reaction from Democrats: "The findings in this report are disturbing and unacceptable," the Democrats, lead by House Energy and Commerce Ranking Member Frank Pallone (D-N.J.), said in joint statement. "No child should be put at risk for toxic lead exposure simply by drinking water at school."

Questions for the EPA: The GAO report additionally found that the Environmental Protection Agency (EPA) was partially responsible for the lack of testing at schools. The watchdog found that EPA--which is responsible for submitting guidance on acceptable lead levels in drinking water--has sometimes issued "misleading" guidance.

"Although EPA guidance emphasizes the importance of addressing elevated lead levels, GAO found that some aspects of the guidance, such as the threshold for taking remedial action, were potentially misleading and unclear, which can put school districts at risk of making uninformed decisions," the GAO report read.

The report added that EPA has not followed through on a 2005 memorandum agreeing to regularly collaborate with state and school districts to familiarize them with the agency's lead guidance.

Read more here.

 

Happy Tuesday! Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news.

Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill.

 

FEMA AVOIDS 'CLIMATE CHANGE' WHEN DISCUSSING RESILIENCY PLAN: The Federal Emergency Management Agency (FEMA) is taking blame for its response to Hurricane Maria, which devastated communities across Puerto Rico last summer, but the agency and its heads are largely avoiding all mention of climate change preparedness.

Speaking at an event Tuesday, FEMA Deputy Administrator for Resilience Daniel Kaniewski remarked on the agency's new plan to reduce community risk and enhance its "culture of preparedness" by focusing on resiliency.

"In the aftermath of these disasters we cannot simply ignore that it will happen again," Kaniewski said of the back-to-back storm systems that hit the U.S. last year.

But Kaniewski stopped short of identifying why FEMA led with the belief that natural disasters would continue.

"With regards to climate I think we all can acknowledge that the climate shifts, it changes over time and we at FEMA are an all-hazard agency. We have to be prepared to respond to any type of event, can be a natural disaster like we just responded to, it can be a man made event-- an industrial accident or a terrorist attack," Kaniewski said.

Read more here.

 

DEMS SLAM BILL TO CHANGE ENDANGERED SPECIES ACT: Senate Democrats on Tuesday criticized multiple GOP-backed changes to the Endangered Species Act (ESA), saying they threaten the conservation program's successes.

The debate came at a hearing examining Environment and Public Works Committee Chairman John Barrasso's (R-Wyo.) major proposal to overhaul the law.

The Republican side: Barrasso's bill aims to give states a bigger role in species recovery, mostly through "recovery teams" -- at least half of whose members would represent state and local interests -- with power to oversee an imperiled plant or animal's recovery.

"The discussion draft elevates the role of states in partnering with the federal government in implementing the Endangered Species Act. It affords states the opportunity to lead wildlife conservation efforts, including through the establishment of recovery teams for listed species in development and implementing recovery plans," Barrasso said at the committee's hearing on the legislation.

"It provides for increased regulatory certainty, so stakeholders are incentivized to enter into voluntary conservation recovery activities," he said. "It increases transparency. It codifies a system for prioritizing species listing petitions, so limited resources flow to the species most in need."

The bill is modeled on an ongoing process by the Western Governors' Association to recommend changes to the law, a process that has been endorsed by numerous GOP governors and one Democrat -- Hawaii Gov. David Ige.

The Democratic side: While Democrats on the Environment Committee recognized that the ESA might warrant some changes and expressed an openness to contributing to the process, they said Barrasso's bill was unacceptable.

"The legislation proposes some changes to the act that cause, for me, some real concerns," Sen. Tom Carper (Del.), the panel's top Democrat, said.

He pointed specifically to changes in the way the Fish and Wildlife Service (FWS) would have to consider scientific findings in its decisions.

"This change could actually prevent the best available science from guiding species management, especially in an administration that consistently denies and undermines science," he said.

Read more.

 

House Dems also fight defense bill amendments: More than 100 Democratic lawmakers are pushing back against Republican efforts to include provisions in the National Defense Authorization Act that would weaken certain endangered species protections.

On Tuesday, 119 House Democrats sent a letter to various lawmakers in both chambers urging them to remove specific language in the House version of the defense bill that could weaken the ESA and Marine Mammal Protection Act.

The Democrats wrote that the provisions in the bill would "have widespread, negative consequences."

"The 2019 Defense Authorization bills contain numerous, controversial, anti-environmental provisions that are unrelated to military readiness," the lawmakers wrote. "These deceptive provisions would cause irreparable harm to our wildlife and public lands."

Read more.

 

ON TAP WEDNESDAY:

The House is due to start voting on amendments to the "minibus" appropriations bill, which includes both the Interior/EPA section and the financial services section.

Dozens of amendments were approved by the Rules Committee Monday for potential votes. While high-profile proposals like restricting offshore drilling areas or Scott Pruitt scandal-related ones didn't make it, some other major regulatory matters did.

Here are a few to watch:

- One from Rep. Jason Smith (R-Mo.) and others would prevent the federal government from paying any attorneys fees as part of a settlement under the Clean Air Act, the Clean Water Act or the Endangered Species Act.

- One from Rep. Don Beyer (D-Va.) and others would undo the section of the bill that would repeal the EPA's Clean Water Rule.

- One from Rep. Gerry Connolly (D-Va.) and others would prevent the EPA from making any changes to the 2015 rule setting coal ash disposal standards.

- One from Rep. Gary Palmer (R-Ala.) would defund the EPA's Criminal Enforcement Division.

- Another from Palmer would defund the EPA's Diesel Emissions Reduction Act grant program.

- One from Rep. Raul Grijalva (D-Ariz.) would boost funding for the Interior's Office of Inspector General by $2.5 million, taking the money away from Secretary Ryan Zinke's office.

Other Wednesday happenings:

"SHARKS!" is the real title of a hearing in the Senate Commerce, Science and Transportation Committee. It will examine innovations in shark research and technology.

The House Energy and Commerce Committee's energy subcommittee will hold a hearing on the role of energy storage in the nation's electric grid.

The House Transportation and Infrastructure Committee's emergency management subcommittee will hold a hearing on how federal programs are helping recovery from the 2017 hurricane season and preparing for the 2018 season.

 

OUTSIDE THE BELTWAY:

Navajo Nation leaders have kicked off formal talks with a company that may buy the coal-fired Navajo Generating Station, the Associated Press reports.

New research argues that bringing back supersonic flights would by an environmental disaster, Reuters reports.

HSBC is predicting that Texas will soon eclipse Iran and Iraq in oil production, CNNMoney reports.

 

IN CASE YOU MISSED IT:

Check out stories from Tuesday...

-Watchdog: Fewer than half of all school districts test for lead in drinking water

-FEMA avoids 'climate change' when introducing future storm resiliency plans

-Dems slam proposed changes to Endangered Species Act

-More than 100 Dems oppose GOP efforts to change endangered species law

-Greens sue EPA over 'super-polluting' truck rule

 
 
 
 
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