Happy Wednesday 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– Trump issues emergency order grounding Boeing 737 Max jets:
President Trump on Wednesday announced the U.S. will ground Boeing 737 Max 8 and Max 9 aircraft, bowing to heavy pressure after two of the planes were involved in deadly crashes overseas.
“All of those planes are grounded, effective immediately,” Trump told reporters at the White House.
{mosads}The president called Boeing “an incredible company” that is “working very, very hard” to address issues with the aircraft, but said “the safety of the American people and all people is our paramount concern.”
Transportation Secretary Elaine Chao, acting Federal Aviation Administration (FAA) chief Daniel Elwell and Boeing CEO Dennis Muilenburg were all consulted and agreed with the decision, Trump said. The Hill’s Jordan Fabian and Brett Samuels tell us why.
- The FAA said in a subsequent statement that the decision came as a result of new data gathered and analyzed Wednesday at the site of the Ethiopian Airlines crash, as well as new satellite data made available Wednesday morning.
- In a call with reporters on Wednesday afternoon, Elwell stood by the agency’s initial refusal to ground the aircraft, even as dozens of other countries did so.
- Three major U.S. airlines operate dozens of Boeing 737 Max 8 and 9 aircraft: American, Southwest and United. All three companies said in statements to The Hill that they would comply with the federal government’s order, and work to accommodate passengers whose flights will be rebooked.
What comes next:
- It’s unclear when then grounded planes will be able to fly again. Elwell, who has led the FAA in an acting capacity since January 2018, declined to estimate how long the suspension would remain in effect.
- “My hope is that the FAA, the carriers, the manufacturer, that all parties will work very hard to make this grounding as short as possible so that these airplanes can get back up in the sky,” he said.
- Boeing CEO Dennis Muilenburg may have to face lawmakers soon. Rep. Dan Kildee (D-Mich.) on Wednesday raised the possibility of a subpoena if the company does not send executives to testify willingly.
- Even so, investors may be thinking the worst is over for Boeing. The company’s stock rose 0.5 percent by the end of Wednesday trading after falling drastically throughout the week.
ON TAP TOMORROW:
- Treasury Secretary Steven Mnuchin testifies before the House Ways and Means Committee on the Treasury Department’s fiscal 2020 budget request, 9 a.m.
- The House Financial Services Committee holds a hearing entitled “Putting Investors First? Examining the SEC’s Best Interest Rule,” 9:30 a.m.
- The Senate Banking Committee holds a hearing on Financial Stability Oversight Council non-bank designations, 10 a.m.
- The Brookings Institution hosts an event entitled “Can big data improve economic measurement?,” 1:15 p.m.
- Treasury Secretary Steven Mnuchin testifies before the Senate Finance Committee on the Treasury Department’s fiscal 2020 budget request, 2:30 p.m.
LEADING THE DAY
Senate talks over emergency declaration collapse: Senate Republicans say talks to find a way to stop a House-passed resolution disapproving of President Trump’s emergency declaration over the southern border are collapsing amid GOP divisions over what some see as a breach of separation of powers.
Senate Republicans said Wednesday afternoon that Trump will not support a proposal sponsored by Sen. Mike Lee (R-Utah) to reform the National Emergencies Act of 1976 and require Congress to approve future emergency declarations after 30 days.
Lee announced Trump’s position after taking a call from the president during the lunch meeting, according to a person familiar with the conversation.
Sen. John Kennedy (R-La.) told reporters after Wednesday’s meeting that it’s clear the disapproval resolution will pass.
“It’s time to vote, everybody knows how they’re going to vote. I don’t think the president’s going to win this one,” he said. The Hill’s Alexander Bolton tells us why.
- There was a flash of hope Tuesday that a deal could be worked out with the White House whereby Trump would promise to support legislation curbing his power to declare future national emergencies in exchange for Republicans defeating the disapproval resolution.
- But Trump decided against curbing his own presidential power, GOP senators said.
- The disapproval resolution faces a certain Trump veto, and there’s not enough support in either the House or the Senate to override it.
Progressives seek defense freeze in budget talks: House progressives are pushing for the Democratic budget resolution to freeze or even lower defense spending, a key sticking point that could prevent the resolution from moving forward.
“We don’t want to see an increase in defense spending, and certainly without some accountability and a stick that is able to be used around the audits and the implementation around the audit recommendations,” said Rep. Pramila Jayapal (D-Wash.), co-chair of the Congressional Progressive Caucus (CPC) and a member of the House Budget committee.
Democrats are struggling to come to an agreement on a resolution that can garner enough votes within their party to pass in the House. Some moderates and deficit hawks are chafing at progressive demands that the resolution substantially increase spending, include elements of the Green New Deal or call for “Medicare for all.” The Hill’s Niv Elis fills us in here.
GOOD TO KNOW
- Orders for manufactured goods and spending on construction rose in January, according to federal data released Wednesday, the latest signs of recovery for the U.S. economy from a dismal end to 2018.
- Democratic Sen. Tammy Baldwin (Wis.) and Rep. Bill Pascrell (D-N.J.) on Wednesday reintroduced legislation to end the carried-interest tax break that benefits investment-fund managers, criticizing President Trump for failing to end the “loophole” in his tax law despite pledging to do so during the 2016 election.
- Spotify has filed a formal antitrust complaint against Apple with European Union competition regulators, alleging that the iPhone maker is unfairly trying to stifle the competing streaming service.
- Senior Treasury Department official David Malpass is on track to be named the next president of the World Bank.
- Iran has lost $10 billion in revenue since U.S. sanctions removed about 1.5 million barrels per day of Iranian crude oil from global markets, Reuters reports.
- Workers at the bottom of the pay scale finally are getting benefits from rising wages, according to CNBC.