OVERNIGHT MONEY: The CR wrangle

The discussion on the continuing resolution will start early tomorrow, with Secretary of State Hillary Rodham Clinton slated to meet with Rep. Hal Rogers (R-Ky.), the House Appropriations chairman, at 8 a.m. Clinton has told congressional leaders that House proposal will devastate U.S. diplomatic operations, a case she will undoubtedly press with Rogers. 

The House spending measure was hit by a veto threat earlier this week, but that rhetoric was softened somewhat by Jack Lew, the president’s budget director, who has testified before a string of congressional panels in recent days. 

Lew told the House Ways and Means Committee on Wednesday that a shutdown should be avoided at all costs, in the process harkening back to the shutdown that occurred while he was on President Clinton’s staff in the mid-1990s.

“It is really not the way to run a government,” the budget director said. 

Still, even as the debate over the CR has seen its share of partisan sniping, the votes have not necessarily broken down on party lines. Moderate Republicans have teamed up with Democrats to preserve police and fire fighting jobs, while Tea Party freshmen have stood with Democrats to kill funding for an alternative engine for the F-35. So stay tuned for the next twists and turns. 

What Else to Watch For:

Hearing Roundup: The Senate Banking Committee will hear from the heads of all the major financial regulators tomorrow, as it examines the implementation of the Dodd-Frank financial reform law six months after it was enacted. Ben Bernanke, the Federal Reserve chairman, will testify, along with the heads of the Securities and Exchange Commission, Federal Deposit Insurance Corporation, and Commodity Futures Trading Commission.

Expect the regulatory deadlines to be a hot topic of conversation at the hearing, after the Republicans on the panel said earlier this week that they were afraid regulators were sacrificing quality and accuracy for speed in the rulemaking process.

Over in the House, a Financial Services subcommittee will delve into one of the more controversial provisions of Dodd-Frank, exploring new limits being placed on so-called interchange fees. Those fees, which are assessed on merchants whenever a debit card is swiped, are now being curtailed under the law, and have been the subject of a tense standoff between retailers and banks, with billions in revenue hanging in the balance. Stakeholders from either side of the debate are scheduled to testify about the provision’s implications.

And the Government Accountability Office’s comptroller general is set to appear in front of the House Oversight panel to discuss a new report on waste and fraud in the federal government. Watch out to see how much or if Republicans lean on the report when they argue for spending cuts.

Mark It Up!: The House Ways and Means Committee is set to mark up a measure to repeal the 1099 provision in the health care overhaul. Sen. Mike Johanns (R-Neb.) announced Wednesday that he was introducing a measure similar to what Ways and Means will consider, which would offset the 1099 repeal by looking to roll back overpayments caused by another area of the health care law. 

What’s Up at Treasury?: The secretary, Timothy Geithner, goes for hearing No. 4 this week, this time in front of the Senate Budget Committee. (Already checked off: Senate Finance and House Budget and Ways and Means.)

For his part, Michael Mundaca, the department’s assistant secretary for tax policy, will talk about budgeting and tax reform in early morning remarks. 

Little Face Time: The Economic Significance of Meetings to the U.S. Economy – billed as a first of its kind look into the importance of face-to-face meetings for jobs, spending and other parts of the economy — is scheduled to be released at the National Press Club. 

Economic Indicators:

— The Labor Department is set to drop a trio of reports this Thursday: weekly jobless claims, real earnings for January and the consumer price index data for last month. 

— The Conference Board is expected to circulate leading indicators for January.

— And Freddie Mac is set to release weekly mortgage rates. 

Breaking Wednesday:

Keeping it NYSE: During his long hours on Capitol Hill on Wednesday, Geithner told the Senate Finance Committee that there was a good chance that “NYSE” would be the first part of the name for the combined entity that will emerge from Deutsche Borse’s takeover of the New York Stock Exchange. Still, The Wall Street Journal reports that the Treasury Secretary also tiptoed around the issue as he was questioned by Sen. Chuck Schumer (D-N.Y.) 

Putting a Price Tag on Living: The New York Times reports that a variety of government agencies have upped the dollar value they put on a life, to cheers from unions and other groups and howls from businesses. An agency’s decision, The Times says, “determines how much spending the government should require to prevent a single death.”

Public-Private Partnership?: FEMA is reaching out to the business world, in what The Washington Post calls a “tacit acknowledgement” that the government can’t go it alone on disasters.  

What You Might Have Missed:

On the Money’s Wednesday:

— Tom Donohue and Richard Trumka – still not Facebook friends, presumably – are still on board with infrastructure investment. 

— The Federal Open Market Committee’s late January minutes show growing optimism about the economy. 

— IRS as a goon squad? Republicans and Democrats discuss. 

— Darrell Issa subpoenaes Bank of America.

— Pat Toomey wants budget changes paired with a debt ceiling vote. 

— Geithner also says corporate and individual tax reform don’t have to be married to each other. 

— The FCIC report cracks the best-seller list, as commission members appear before Congress.

— And Louise Slaughter will gladly take Florida’s high-speed rail money.