All Eyes on Powell as Fed Meets on Interest Rates: Starting Line

All Eyes on Powell

Today’s meeting of Federal Reserve policy-setters will almost be more worth watching for what’s said than what’s done.

It’s their first meeting since the US-Israeli assault on Iran, leading to high energy prices that impact multiple sectors of the economy. Keeping inflation in check is one of the Fed’s missions, so economic forecasts due out this afternoon will offer clues on how they expect the oil-price shock to affect the economy over the longer run, Jonnelle Marte reports.

There’s also a political drama hanging over today’s meeting, which will conclude with a press conference by Chairman Jerome Powell.

Powell’s term ends in May, and the government’s appeal of a decision to block subpoenas served on the central bank is threatening to disrupt the transition to a new chair. Look for Powell to be asked about the Justice Department probe and his future plans. Read More in Bloomberg’s decision-day guide.

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Mullin’s Turn

Sen. Markwayne Mullin (R-Okla.)

Photographer: Graeme Sloan/Bloomberg

It’s hearing day for GOP Sen. Markwayne Mullin, chosen by President Donald Trump to be the next Homeland Security secretary. The Oklahoman should be anticipating questions about his qualifications, background, and the behavior of the staff he aspires to lead.

He also should be ready for some pointed questions from the Homeland Security and Governmental Affairs Committee chairman, fellow Republican Rand Paul. As Senate colleagues, the two have had a fractious relationship, with Mullin referring to Paul as a “freaking snake.”

Paul has had blunt assessments of the administration’s aggressive immigration tactics in Minneapolis and elsewhere. “We saw women thrown to the ground for yelling at officers,” he said in a recent interview. “No one wants to be yelled at, but this is America.”

And of course the department, which in addition to immigration is responsible for airport security and disaster response, has been unfunded for weeks as Democrats demand that agents uncover their faces and get judicial warrants.

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China Scrutiny

China has captured a substantial chunk of the market for the ingredients in a wide array of medicines. For example, a commonly used antibiotic needs four separate starting materials, each produced almost entirely in China, as our Bloomberg colleagues reported last fall.

Today, the House Select Committee on China will examine that part of the pharmaceutical supply chain.

Among the scheduled witnesses: the president of Tennessee-based USAntibiotics, this country’s only manufacturer of Amoxicillin products.

For a fuller look at today’s congressional agenda, check out Congress Tracker.

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Mixed Verdict on Comebacks

Democrats in Illinois had the chance to bring back two ex-House members, but only said yes to one.

Ex-Reps. Jesse L. Jackson Jr., and Melissa Bean were among the better-known names in yesterday’s congressional primaries. Bean is likely to return to Congress, but Jackson — brother of 1st District Rep. Jonathan Jackson and son of the late civil rights leader Jesse L. Jackson Sr. — was defeated by Cook County Commissioner Donna Miller. Jackson served in the House from 1995 to 2012 and resigned before his conviction and imprisonment for illegally spending $750,000 in campaign contributions.

Bean, who served in the House from 2005 to 2011, was nominated to succeed Rep. Raja Krishnamoorthi. He and Rep. Robin Kelly ran in the Senate Democratic primary, but lost the nomination to Lt. Gov. Julia Stratton. Read More from Greg Giroux

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East Wing Face-Off

The judge who twice refused to stop work on Trump’s new ballroom sharply questioned the Justice Department’s contention that a law permitting maintenance and alterations of the White House also grants authority for a new East Wing building.

“That takes some brazen interpretation of the laws of vocabulary,” said Senior Judge Richard Leon of the US District Court for the District of Columbia.

Suzanne Monyak reports that the judge suggested the administration’s making an “end-run” on the appropriations process.

“This is a special place. This is an iconic symbol of this nation,” Leon said. “There’s no track record of anything like this being done before.”

Above-ground structural work is expected to start as soon as April, the government has said in past court filings. Leon said he’ll do his “level best” to decide the case by the end of March.
Read More

Before You Go

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The House committee investigating Jeffrey Epstein voted to subpoena US Attorney General Pam Bondi to testify on her handling of Justice Department files on the disgraced financier.

NIH Director Bhattacharya Pressed on How He Can Also Lead CDC

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To contact the editors responsible for this story: Keith Perine at kperine@bloombergindustry.com; Herb Jackson at hjackson@bloombergindustry.com

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All Eyes on Powell as Fed Meets on Interest Rates: Starting Line