OVERNIGHT FINANCE: How fast will Fed enter ‘exit mode?’

TOMORROW STARTS TONIGHT: BIG WEEK GAUGING ECONOMY’S RECOVERY. The Federal Open Market Committee meets tomorrow and will release its policy statement on Wednesday. Meanwhile, the Commerce Department will also release second quarter GDP estimates on Wednesday.

{mosads}Two things to know heading into the week:

1.) THE PRIMER – – > FED ENTERS ‘EXIT-MODE.’ Ylan Q. Mui for The Washington Post: “The Federal Reserve is finally moving out of crisis mode. In the six years since the financial crisis rewrote economic history books, the country’s central bank has held its benchmark interest rate at zero and pumped trillions of dollars into the U.S. economy. Now, it is getting ready to turn off the spigot and start draining the tub — a complicated process that has become known simply as ‘the exit.’” READ THIS to stay ahead of what’s happening: http://wapo.st/UGU3sZ.

— MARKET BRACES THE WEEK AHEAD: Lu Wang for Bloomberg: “U.S. stocks were little changed, after erasing an earlier loss, as merger activity and optimism over corporate earnings offset concern over crises abroad before a Federal Reserve policy decision.” http://bloom.bg/1rTGqnb.

2.) Short-term look: good. Long-term: unknown. Steve Goldstein for MarketWatch: “The big picture for the U.S. economy will be a good one, data this week are likely to show. But as the conversation moves to interest rate hikes next year, there’s the danger that tightening could reveal some currently hidden risks to the financial system.” http://on.mktw.net/1Arld8k.

THIS IS OVERNIGHT FINANCE, and tomorrow is the big bash for The Hill’s 50 Most Beautiful People. Tweet: @kevcirilli; email: kcirilli@digital-release.thehill.com; and subscribe: http://digital-release.thehill.com/signup/48.

BIG CHANGES AT THE HILL – There’s a lot to toast at tomorrow’s 50MB bash in Washington, including some exciting developments on our editorial side: Here’s news straight from the hometown paper:

“The Hill, publication of record for policy influencers inside and outside Washington, today announced that Bob Cusack has been named Editor in Chief… Cusack announced several other appointments at The Hill. Current News Editor Ian Swanson is being tapped as Managing Editor to replace Cusack, while Business and Lobbying Editor Dustin Weaver will replace Swanson as News Editor.” http://bit.ly/1qav8Ig.

— BIG congratulations to Bob, Dustin and Ian… very much deserved.

2016 WATCH: HILLARY STICKIN’ WITH WALL STREET. My latest for the hometown paper: “Hillary Clinton isn’t backing away from Wall Street. As cries from within her own party grow louder for the all-but-declared 2016 Democratic presidential candidate to distance herself from high finance’s titans, Clinton is continuing to address Wall Street audiences… Supporters of Clinton argue there’s no need for her to change her schedule. They say her career is highlighted with support for liberals ideals, from raising the minimum wage to improving healthcare.”

Let’s booze for Hill…

— SHOT, Democratic strategist Bob Shrum: “Yeah, for some there’s a desire to bash banks, but they care more about raising minimum wage, making college affordable and income inequality. And for Hillary, that’s the test — not whether she gave a speech for Ameriprise.”

— CHASER, top GOP strategist Ford O’Connell: “What exactly does Hillary stand for: Main Street? Wall Street? No one knows. She seems to be talking out of both sides of her mouth.”My story – – > http://bit.ly/1nAyXs0.

NOTABLE: CASTRO SWORN-IN AT HUD. Former-San Antonio Mayor Julian Castro was sworn-in earlier today as secretary of Housing and Urban Development. Next time: VEEP?

SPORTS BLINK: JUDGE RULES AGAINST STERLING, via The Associated Press: “LOS ANGELES — A judge ruled against Los Angeles Clippers owner Donald Sterling on Monday in his attempt to block the $2 billion sale of the Clippers to former Microsoft CEO Steve Ballmer. In the tentative ruling, Superior Court Judge Michael Levanas sided with Sterling’s estranged wife Shelly Sterling, who burst into tears when the ruling was announced.” http://es.pn/1oCS5WD.

BIG DEAL – EU, US TO INCREASE RUSSIAN SANCTIONS: The Hill’s Rebecca Shabad: “The White House and Europe will implement new sanctions against Russia this week in the wake of its continued assistance to rebels in Eastern Ukraine, deputy national security adviser Tony Blinken said Monday… The United States, he said, will also impose additional costs itself…

“EU officials are scheduled to meet Tuesday to decide what the sanctions will target. The world leaders discussed the need to recover victims’ remains from the downing of Flight MH17 and reiterated that international investigators need unfettered access to the crash site.

“Blinken said the U.S. believes pro-Russian separatists in Eastern Ukraine still have SA-11 missiles, one of which was believed to have taken down the airliner. Russia, meanwhile, seems unfazed by the impending sanctions.” http://bit.ly/1pn0XyI.

ANOTHER BIG DEAL: VA $17B REFORM DEAL REACHED. Martin Matishak for The Hill: “House and Senate negotiators have agreed to a $17 billion bill meant to reform the Veterans Affairs Department, setting up a scramble this week to send the legislation to President Obama’s desk.

“The new bill would provide $10 billion for veterans to seek private care at hospitals and clinics outside Veterans Affairs, and $5 billion to allow the department to hire more doctors, nurses and medical staff. Another $1.5 billion could be spent on leases to use other medical facilities at 27 sites around the country…”

— BREAK FOR BERNIE? “House Veterans’ Affairs Committee Chairman Jeff Miller (R-Fla.) predicted the bonus limit would let the government recoup $400 million over 10 years. Senate Veterans’ Affairs Committee Chairman Bernie Sanders (I-Vt.), who negotiated the deal with Miller, said he was ‘comfortable’ with the balance between emergency spending and spending cuts.” http://bit.ly/1px3Slz. 

— RT HuffPo’s @SamSteinHP: “All things considered, big win for Bernie.”

ON-TAP FOR THE WEEK: It’s crunch time as recess looms. Cristina Marcos tees up the final week before the August recess: immigration, House GOP lawsuit, and the Highway Trust Fund are just a few of the specials on-tap this week: http://bit.ly/1qcjz3f.

DATA WATCH – HOUSING RECOVERY SLOWS, via Vicki Needham: “After three consecutive months of solid gains, pending home sales slowed modestly in June amid an improving housing market that is still facing inventory and credit challenges.” http://bit.ly/WKxaXs.

SIDESHOW: INGRAHAM FOR OFFICE? Toby Harnden for the Sunday Times on conservative radio host Laura Ingraham’s political future: “Ingraham hinted that her forays into Republican primary races this year could be the foundation for a political career of her own. ‘I’ve been approached by various people to get involved,’ she said. ‘I’m keeping an open mind about running for office in the future.’” http://bit.ly/1k3FrQc.

OBAMA TO AFRICA: DON’T MAKE EXCUSES, via Reuters’s Annika McGinnis: “U.S. President Barack Obama on Monday gave a preview of a summit he will hold with African leaders next week, saying their nations should look inward for solutions to economic woes and not make ‘excuses’ based on a history of dependence and colonization.”http://reut.rs/1lOUk4e.

DAYS UNTIL EX-IM EXPIRES: 64. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) wants President Obama to stop all Export-Import deals with Russia. In a letter sent to Obama and top administration officials on Friday, Hensarling said that although the White House has announced sanctions on Russian companies, it also “offers sweetheart deals to Russian companies through Ex-Im.” My story: http://bit.ly/1nOLA3R.

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