Business & Economy

On The Money: Deficit spikes 25 percent through January | Mnuchin declines to say why Trump pulled Treasury nominee who oversaw Roger Stone case | Lawmakers trade insults over Trump budget cuts

The U.S. hit its debt limit — currently $31.4 trillion — in January 2023, triggering a high-stakes and potentially disastrous political fight.

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THE BIG DEAL–Deficit spikes 25 percent through January: The federal deficit through January climbed to $389 billion, a 25 percent spike from the same period last year, according to Treasury Department data released Wednesday.

The new data comes three days after President Trump called for deep cuts to domestic programs and limitations on mandatory spending in his 2021 budget proposal, and a day after Federal Reserve Chairman Jerome Powell called on Congress to reduce the U.S. federal budget deficit to ensure the central bank could adequately respond to a financial crisis or recession.

The Hill’s Niv Elis explains how we got here.

 

Read more: A House Budget Committee hearing turned heated Wednesday as Democrats excoriated President Trump’s proposed cuts to entitlement programs and domestic spending and Republicans ripped their Democratic colleagues for failing to offer their own budget.

Committee Chairman John Yarmuth (D-Ky.) called it a “destructive and irrational” proposal, while Rep. Rosa DeLauro (D-Conn.) called it “an Orwellian presentation that showcases doublespeak.”

“Your infrastructure program is weak and pathetic,” said Rep. Brian Higgins (D-N.Y.).

 

ON TAP TOMORROW

 

Building the Dream: Charlotte

The Hill will be in Charlotte, N.C. on Thursday, February 20th. Our editors will sit down with Charlotte Mayor Vi Lyles, Rep. Alma Adams (D-N.C.), state Sen. Paul Newton (R) and others to discuss financial hurdles to homeownership. Join us live in Charlotte or join the livestream.

 

LEADING THE DAY

Mnuchin declines to say why Trump pulled Treasury nominee who oversaw Roger Stone case: Treasury Secretary Steven Mnuchin declined to explain Wednesday why President Trump pulled the Treasury nomination of a former U.S. attorney who had supervised the prosecution of several of the president’s campaign advisers.

In an appearance before the Senate Finance Committee, Mnuchin refused to say why Trump withdrew the nomination of Jessie Liu to serve as Treasury undersecretary for terrorism and financial crimes Tuesday night. 

“I think you know nominations are at the president’s direction and we don’t comment … as a matter of policy when nominations are withdrawn, which happens for a variety of different reasons at different times,” Mnuchin said under questioning from Sen. Sherrod Brown (D-Ohio)

Brown, the top Democrat on the Banking panel, replied: “I would hope you would give an explanation that’s counter to the one everyone assumes, which is that she’s part of the president’s personal retribution tour.”

Brown also condemned Trump’s withdrawal of Liu’s nomination and alleged retaliation against impeachment witnesses during a Banking Committee hearing Wednesday morning.

 

More from Mnuchin’s hearing: 

 

GOOD TO KNOW

 

ODDS AND ENDS