Overnight Finance: Trump touts trade agenda in State of the Union address | Consumer Bureau ruled constitutional | Fed leaves rates unchanged

View in your browser     Trump says global trade will be fair and reciprocal: President Trump in his first State of the Union address said that the days of unfair trade are over and the United States will improve global agreements and make way for new deals. Trump has promised to overhaul U.S. trade policy but so far through his first year has yet to form any new trading partnerships or remake established trade pacts such as the North American Free Trade Agreement (NAFTA). "America has also finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs and our nation's wealth,” he said during his address on Capitol Hill.  “The era of economic surrender is over,” he said. Trump has touted his pledge that "trading relationships be fair and, very importantly, reciprocal” and that “we will work to fix bad trade deals and negotiate new ones.” “They’ll be good ones but they’ll be fair,” he said during his remarks to Congress: http://bit.ly/2Gzml1L.   Trump calls for infrastructure plan of 'at least' $1.5T: President Trump called on Congress to pass an infrastructure bill costing at least $1.5 trillion during his State of the Union address on Tuesday night, hoping to breathe some life into one of his long-stalled campaign promises. Trump’s rebuilding plan, which is expected to be a core part of his 2018 agenda, will be divided into two major goals: rebuilding U.S. infrastructure and speeding up the permit approval process. "I am asking both parties to come together to give us the safe, fast, reliable and modern infrastructure our economy needs and our people deserve,” Trump said. “Tonight, I am calling on the Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment we need.” Trump’s pitch, however, lacked critical policy details, like how the White House plans to pay for the package or how exactly the money will be spent: http://bit.ly/2GAFmAU.   Appeals court rules consumer bureau's structure is constitutional: Language in the Dodd-Frank Act that gives the Consumer Financial Protection Bureau’s (CFPB) independence from Congress is constitutional, the U.S. Court of Appeals for the District of Columbia Circuit ruled Wednesday, overturning a 2016 ruling by three of the court's judges. In a review of the court’s previous decision, PHH v. CFPB, the full court held that the bureau can exist as an independent agency with a sole director who can only be fired by the president for “inefficiency, neglect of duty, or malfeasance.” Judge Nina Pillard, who wrote the court’s opinion, cited the precedent set by Humphrey’s Executor v. United States, a 1935 case reaffirming the legality of the Federal Trade Commission’s independent, sole-director structure. “The Court approved the very means of independence Congress used here: protection of agency leadership from at-will removal by the President. The Court has since reaffirmed and built on that precedent, and Congress has embraced and relied on it in designing independent agencies,” Pillard wrote. “We follow that precedent here to hold that the parallel provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act shielding the Director of the CFPB from removal without cause is consistent with Article II,” she wrote. I’ve got more on the ruling, including perspective from Richard Cordray, right here: http://bit.ly/2GAUYVg.   Fed keeps rates unchanged in final days under Yellen: The Federal Reserve announced on Wednesday it is leaving interest rates unchanged, days before Chairwoman Janet Yellen is set to leave the central bank. The bank kept the interest rate range between 1.25 and 1 percent, an attempt to coax low inflation toward the Fed’s 2-percent target before increasing the pace of rate hikes. "Inflation on a 12‑month basis is expected to move up this year and to stabilize around the Committee's 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely," the Fed said. It’s the last decision on interest rates the bank will make before Federal Reserve Governor Jerome Powell takes over as chairman on Feb. 3. Yellen will depart the Fed after presiding over four years of falling unemployment. Her policy to maintain low interest rates despite the misgivings of conservatives has earned her widespread praise among economists of all stripes: http://bit.ly/2GC0l6G.   Happy Wednesday and welcome back 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@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.   CBO: Debt-limit deadline likely in first half of March: The Congressional Budget Office (CBO) on Wednesday said the Treasury Department will most likely run out of cash in the first half of March if Congress doesn't raise or suspend the debt limit before then. The nonpartisan budget scorekeeper had estimated in November that the debt-limit deadline would be in late March or early April. But the CBO moved up its projected deadline as a result of the tax-cut law President Trump signed in December. "Because the tax legislation reduced individual income taxes for most taxpayers, the Internal Revenue Service released new income tax withholding tables for employers to use beginning no later than the middle of February 2018," CBO said in a report. "As a result of those changes, CBO now estimates that, starting in February, withheld amounts of individual income taxes will be roughly $10 billion to $15 billion per month less than anticipated before the new law was enacted." http://bit.ly/2GyDcC9.   US businesses added 234,000 jobs in January: U.S. businesses kept up a solid pace of hiring in January, a good sign as the economy heads into uncharted territory following the passage of sweeping tax legislation. Employers added 234,000 jobs, slightly below December’s 242,000, capping off a four-month streak of monthly jobs growth eclipsing 200,000, payroll processor ADP reported on Wednesday. Mark Zandi, chief economist of Moody’s Analytics who compiles the ADP data, said the January figure continues a "string of very strong job numbers" and the latest number is consistent with a "rip-roaring job market." Growth is widespread across the country and hiring is robust throughout most sectors. The Hill’s Vicki Needham breaks it down: http://bit.ly/2GyEUmT.   Lawmakers worry digital currency helping human traffickers avoid detection: Lawmakers at a Tuesday hearing discussed ways to crack down on human traffickers who are using new financial tools to avoid detection. The House Financial Services Subcommittee on Oversight and Investigations heard from witnesses on the increasing use of cryptocurrencies and encrypted communications, including on smartphones, that make it harder for authorities to catch traffickers. “The lifeblood of human trafficking is the ability to transfer money,” said Rep. Ann Wagner (R-Mo.). “While money has historically been transmitted using remittance services and funnel accounts, the use of prepaid cards and cryptocurrency create an unforeseen challenge for financial regulators.” http://bit.ly/2GyLqdj.   White House to ask for 72 percent cut in renewable energy programs: President Trump’s administration is reportedly seeking a 72 percent cut to the budget of Department of Energy programs related to energy efficiency and renewable energy. Draft budget documents obtained by The Washington Post show the Trump administration will ask for $575.5 million in spending for the Energy Department’s Office of Energy Efficiency and Renewable Energy. The office’s current spending level is set at $2.04 billion for the fiscal year. Last year, Trump sought $636.1 million in spending for the office, which Congress later rejected in support of higher numbers. The Post reports the draft budget documents also seek staffing cuts to the office, reducing the number of workers from 680 in the 2017 budget to 450 in 2019. In a statement to the Post, the White House said it would not comment “on any leaked or pre-decisional documents prior to the release of the official budget.” http://bit.ly/2GC2oYq.   Rubio: ‘We have to do more’ to help Puerto Rico: Sen. Marco Rubio (R-Fla.) says lawmakers need to do more to help Puerto Rico recover from Hurricane Maria, with nearly a third of the island's people still lacking power and other resources. "We need to pass a disaster relief package," Rubio told "CBS This Morning" co-host John Dickerson on Wednesday. "What the House passed was not enough. We have to do more; we're working on doing more." Rubio's comments came the morning after President Trump's first State of the Union address where he mentioned Americans still recovering from a devastating series of hurricanes last year. Rubio said he is working with fellow Florida Sen. Bill Nelson (D) on new legislation to bring more aid to Puerto Rico. "My biggest concern is that we didn't do enough early in the process at the federal level, because we tried to treat it like a conventional storm and it was not," he added: http://bit.ly/2GAYGxV.     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.         Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Tech: Dems hammer Twitter, Facebook over #Releasethememo campaign | Apple confirms government probe | Twitter says 1.4m users interacted with Russian troll accounts

View in your browser     DEMS HAMMER TWITTER, FACEBOOK OVER #RELEASETHEMEMO CAMPAIGNS: Two Democratic lawmakers slammed Twitter and Facebook on Wednesday, saying the social media giants' response to questions about recent alleged Russian manipulation of their platform were “incomplete.” Top House Intelligence Committee Democrat Adam Schiff (Calif.) and top Senate Judiciary Committee Democrat Dianne Feinstein (Calif.) had previously sent the companies a letter requesting that they conduct a detailed investigation into social media promotion of the hashtag #ReleaseTheMemo, a campaign that pushed lawmakers to release a controversial House Intelligence memo on FBI surveillance. The hashtag was allegedly boosted by a Russian bot campaign. The companies gave their responses to Feinstein's and Schiff’s offices on Friday, but the two lawmakers said Wednesday that the answers provided by Facebook and Twitter “have raised more questions than they have answered.” In its response, Facebook deflected questions saying that it consistently monitors its platform for “bad actors trying to undermine our democracy,” but that it welcomed information from other companies like Twitter on the matter. Twitter said that it has “not identified any significant activity connected to Russia with respect to Tweets posting original content to this hashtag.” The California Democrats pressed the companies for more answers in a follow-up letter that they sent Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg on Wednesday. Schiff and Feinstein said that they were “no closer to understanding Russia’s continuing interference in our democratic affairs” following Twitter and Facebook’s responses, noting that the companies did not answer their questions about the volume of bot accounts that were involved in pushing #ReleaseTheMemo, how much these accounts posted and how many legitimate — rather than automated — accounts were tied to the campaign. Read more here. Please send your tips, comments and compliments to Ali Breland (abreland@thehill.com) and Harper Neidig (hneidig@thehill.com) and follow us on Twitter: @alibreland and @hneidig. We're also on Signal and WhatsApp. Email or DM us for our numbers. APPLE CONFIRMS GOVERNMENT PROBE: Apple said on Tuesday that it has been contacted by government agencies about the intentional slow down of older devices and that it is in the process of answering their questions. “We have received questions from some government agencies and we are responding to them,” an Apple spokesperson said in a statement emailed to The Hill, without specifying which agencies. “As we told our customers in December, we have never — and would never — do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades,” the spokesperson noted. Bloomberg on Tuesday reported that Apple had been contacted by the Department of Justice and the Securities and Exchange Commission as part of inquiries into whether Apple broke securities laws in revealing that it slows its phones down as they age to preserve deteriorating battery life. Read more here. TWITTER SAYS 1.4M USERS INTERACTED WITH RUSSIAN TROLL ACCOUNTS: Twitter says the number of users who may have interacted with Russian content intended to influence the election is now 1.4 million. The company provided the updated figure, more than double the 650,000 users the company notified initially, on Wednesday. The new figures include users who engaged with or followed Russian accounts, as well as people who don't receive Twitter emails and can't be notified that they were affected. As of Jan. 29, Twitter had notified around 650,000 people who had liked or retweeted content from Russian-linked accounts trying to influence the election. Read more here. HOUSE DEMS DEMAND ANSWERS FROM STRAVA: Democrats on the House Energy and Commerce Committee are demanding answers from Strava, the fitness app that analysts say may have inadvertently revealed the locations of covert military and intelligence bases. The lawmakers, led by Rep. Frank Pallone Jr. (D-N.J.), on Wednesday asked for a briefing from the company following reports that analysts have been able to use its publicly available “heat map” to pinpoint the locations of U.S. military bases in the Middle East. "The increasing popularity of fitness trackers and other wearable technology has raised serious questions about the types of data they collect and share and the degree to which consumers control their own personal information," the members wrote in a letter to Strava. "The data these devices collect reveals users' precise locations, daily activities, and health information. Most consumer technology companies, however, are not required to set baseline privacy standards or ensure that users' information is secured." Read more here. UBER EXEC TO TESTIFY BEFORE SENATE ON 2016 DATA BREACH: A top Uber executive will testify before the Senate next week on the company’s 2016 data breach, which exposed the data of 57 million users. John Flynn, Uber’s chief information security officer, will appear before a Senate Commerce subcommittee on Tuesday. The hearing will focus on the breach and Uber’s reported payoff to the hacker responsible through its “bug bounty” program, which is meant to reward researchers for discovering vulnerabilities in the company’s infrastructures. "We have worked closely with the Senate Commerce Subcommittee on Consumer Protection, Product Safety, Innovation, & Data Security and look forward to participating in their hearing," an Uber spokesman said in a statement. Read more here. LAWMAKERS WORRY DIGITAL CURRENCY HELPING HUMAN TRAFFICKERS: Lawmakers at a Tuesday hearing discussed ways to crack down on human traffickers who are using new financial tools to avoid detection. The House Financial Services Subcommittee on Oversight and Investigations heard from witnesses on the increasing use of cryptocurrencies and encrypted communications, including on smartphones, that make it harder for authorities to catch traffickers. “The lifeblood of human trafficking is the ability to transfer money,” said Rep. Ann Wagner (R-Mo.). “While money has historically been transmitted using remittance services and funnel accounts, the use of prepaid cards and cryptocurrency create an unforeseen challenge for financial regulators.” Read more here.         Did a friend forward you this email? Sign up for Technology Newsletters     Forward Technology Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Regulation: Court upholds consumer bureau's structure | CDC chief resigns after report she traded tobacco stocks | EPA delays Obama water rule

View in your browser     Welcome to Overnight Regulation, your daily rundown of news from the federal agencies, Capitol Hill, the courts and beyond. It's Wednesday night in Washington. The House and Senate aren't in session but it's been a busy news day.   THE BIG STORY Language in the Dodd-Frank Act that gives the Consumer Financial Protection Bureau's (CFPB) independence from Congress is constitutional, the U.S. Court of Appeals for the District of Columbia Circuit ruled Wednesday, overturning a 2016 ruling by three of the court's judges. In a review of the court's previous decision, PHH v. CFPB, the full court held that the bureau can exist as an independent agency with a sole director who can only be fired by the president for "inefficiency, neglect of duty, or malfeasance." The full court's 6-3 vote to overturn the 2016 decision preserves the structure of the CFPB as laid out in Dodd-Frank, handing a victory to the bureau's supporters. PHH, a mortgage lender, sued the CFPB in 2015 over a $103 million fine the bureau issued. Their suit challenged not only the legality of the fine, but also the constitutionality of the bureau's leadership structure. The full court ruled against the fine but upheld the agency's structure. Who's happy with this decision? The ruling protects the bureau's legal foundation. Former CFPB Director Richard Cordray called it "an important ruling" that "vindicates the independence of the CFPB." "It's a good day for America," Corday told The Hill, praising the court for protecting the agency he set up in 2013 as the founding director. What's the backstory? The opinion comes as progressives and conservatives clash over the future of the CFPB, now run by Office of Management and Budget Director Mick Mulvaney. Mulvaney has taken several steps to rein in the CFPB's regulations and its oversight of the financial sector, drawing criticism from liberals who say he is effectively shutting down the agency. Wednesday's ruling gives Mulvaney a clear path to continue reshaping the CFPB, as he will retain his power as acting director. Cordray said the ruling is important to the future of the bureau, even if it gives Mulvaney cover to unwind his legacy. Read the rest of the story from Sylvan Lane here.   REG ROUNDUP Health care: Centers for Disease Control and Prevention Director Brenda Fitzgerald resigned Wednesday, one day after reports that she traded tobacco stocks while heading the agency. "This morning Secretary [Alex] Azar accepted Dr. Brenda Fitzgerald's resignation as Director of the Centers for Disease Control and Prevention," the Department of Health and Human Services said in a statement. "Dr. Fitzgerald owns certain complex financial interests that have imposed a broad recusal limiting her ability to complete all of her duties as the CDC Director. Due to the nature of these financial interests, Dr. Fitzgerald could not divest from them in a definitive time period." Politico reported Tuesday that Fitzgerald bought a share in Japan Tobacco one month into her leadership of the agency, which is responsible for reducing tobacco use among Americans. Fitzgerald was already under scrutiny for failing to divest from other holdings she bought prior to taking the job, which led to her recusal from some health issues. Jessie Hellmann has the full story here.   Environment: The Environmental Protection Agency (EPA) is pushing back by two years an Obama administration rule redefining the federal government's power over small waterways. The Trump administration is working to repeal the rule, dubbed the Clean Water Rule or Waters of the United States, and formally proposed to do so last year. But earlier this month, the Supreme Court overturned a federal appeals court's action halting the rule, so it could take effect soon. EPA head Scott Pruitt said the Wednesday action is meant to stop the Clean Water Rule from taking effect again. "Today, EPA is taking action to reduce confusion and provide certainty to America's farmers and ranchers," Pruitt said in a statement. "The 2015 WOTUS rule developed by the Obama administration will not be applicable for the next two years, while we work through the process of providing long-term regulatory certainty across all 50 states about what waters are subject to federal regulation." Timothy Cama has the full story here.   Environment: Chairmen of the House Natural Resources Committee and its subcommittees sent a joint letter Wednesday to Interior Secretary Ryan Zinke, praising his "bold and innovative" plans to reorganize the department, and urging him to relocate more staff on the ground in western regions. In the letter, the six Republican chairmen, led by Rep. Rob Bishop (Utah), called Zinke's proposed reorganization plans "a first step in transforming the department for the 21st Century." The chairman told Zinke that he "must consider" relocating staff or bureau management to areas "on the ground" outside of Washington, D.C. Miranda Green has more here.   Technology: Apple on Tuesday said it has been contacted by government agencies about the intentional slow down of older devices and that it is in the process of answering their questions. "We have received questions from some government agencies and we are responding to them," an Apple spokesperson said in a statement emailed to The Hill, without specifying which agencies. "As we told our customers in December, we have never -- and would never -- do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades," the spokesperson noted. Bloomberg on Tuesday reported that Apple had been contacted by the Department of Justice and the Securities and Exchange Commission as part of inquiries into whether Apple broke securities laws in revealing that it slows its phones down as they age to preserve deteriorating battery life. Apple apologized to consumers after disclosing this in December. Read Ali Breland's story here.   International: The United States on Wednesday added the head of Hamas's political arm to its terrorist list in a move likely to raise already-soaring tensions in the region. The State Department announced that Ismail Haniyeh, the chairman of Hamas's political bureau, had been put on the U.S. blacklist, citing the official's close ties with Hamas's military wing and his reported involvement in terrorist attacks against Israelis. The designation cuts Haniyeh off from the American financial system, freezing any assets he may have in the U.S. and barring him from doing business from U.S.-based entities. The move came amid rising tensions between the U.S. and the Palestinians, which boiled over in December after President Trump recognized Jerusalem as the capital of Israel. Max Greenwood has more here.   Technology: Senate Minority Leader Charles Schumer (D-N.Y.) has recommended one of his aides for a slot on the Federal Trade Commission (FTC), Reuters reports. Schumer suggested the White House nominate his chief counsel Rebecca Slaughter to fill a Democratic opening at the consumer protection agency, according to the report. Last week, President Trump nominated four potential FTC commissioners, including three Republicans and one Democrat. Harper Neidig has the rest here.   Technology: Lawmakers at a Tuesday hearing discussed ways to crack down on human traffickers who are using new financial tools to avoid detection. The House Financial Services Subcommittee on Oversight and Investigations heard from witnesses on the increasing use of cryptocurrencies and encrypted communications, including on smartphones, that make it harder for authorities to catch traffickers. "The lifeblood of human trafficking is the ability to transfer money," said Rep. Ann Wagner (R-Mo.). "While money has historically been transmitted using remittance services and funnel accounts, the use of prepaid cards and cryptocurrency create an unforeseen challenge for financial regulators." Kaitlin Milliken has more here.   ELSEWHERE IN THE NEWS: Rise of bitcoin futures prompts regulator to revisit hands-off approach -- The Wall Street Journal Google rivals ask EU to toughen measures in antitrust case -- The Wall Street Journal Two ex-Morgan Stanley advisers to plead guilty to US fraud charges -- Reuters EU to put banks through Brexit mill in toughest stress test yet -- Reuters South Korea detects $600M of illegal cryptocurrency trading as it steps up regulation -- The Independent California mayors ask state regulator to spur battery-powered bus buying -- Bloomberg   FROM THE HILL'S OPINION PAGES: To regulate or not to regulate? Cryptocurrencies beg the question   Send tips, story ideas and pictures of puppies in the snow to nweixel@thehill.com and follow me on Twitter @NateWeixel           Did a friend forward you this email? Sign up for Regulation Newsletters     Forward Regulation Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.