In fact, centrist GOP senators are praising the president’s decision to include entitlement cuts in the 2014 budget, saying it makes them more optimistic a deficit-reduction deal can be reached.
While they say the proposals don’t go far enough, they give the president some credit for moving toward them.
{mosads}Sen. Mike Johanns (R-Neb.) described the Obama proposal as offering a “glimmer” of hope for a broad deal.
“I don’t believe the budget proposal went far enough and I don’t understand the timing at all, but having said that, I respect him for taking a stand on something that’s controversial,” he said. “It’s a glimmer, a glimmer.”
That brings us to the pizza and beer portion of the budget debate. Or maybe steak and wine. Obama will host a dozen senators on Wednesday night at the White House — his second meeting in the past two months to talk about ways forward on a broad range of issues.
WHAT ELSE WE’RE WATCHING
Almost there: Sylvia Burwell, President Obama’s nominee to be his next budget director, faced little resistance on Tuesday but could be in for sharper questions from the Senate Budget Committee on Wednesday.
While Republicans on the Homeland Security and Governmental Affairs Committee gave Burwell their blessings on Tuesday, she could have a tougher time with hard-questioning Budget ranking member Jeff Sessions (Ala.).
Still, she probably can take a deep breath and feel confident that she can scale the 60-vote hurdle in the Senate.
Minute men: Fed watchers will get a few more morsels of information tomorrow when the central bank releases its latest minutes from its March meeting. The Fed didn’t shake the boat too much with that announcement, opting to keep a steady hand on low interest rates and billions more in bond purchases. But with the economy seeking to be regaining its balance and markets wondering when the Fed might be eyeing the exit, plenty of people will be digging through the detailed breakdown of the last meeting for any potentially helpful hints.
European trade: U.S. lawmakers will join with their European Union counterparts on Wednesday to chat about the upcoming start of negotiations over a free-trade agreement. Acting U.S. Trade Representative Demetrios Marantis will be joined by House Ways and Means Committee Chairman Dave Camp, EU Parliament Member and Chairman of the International Trade Committee Vital Moreira and business representatives to highlight how the proposed transatlantic trade agreement will benefit both economies in an event hosted by the U.S. Chamber of Commerce on Capitol Hill.
Talks are set to start in June and could take upward of two years. A pact would lead to a $5 trillion trade bloc and would likely provide a boost to the economies on both sides of the Atlantic.
Balancing the debt: The House Ways and Means Committee will hold a hearing Wednesday on the government’s ability to prioritize its obligations and continue operations should the U.S. Treasury reach its statutory debt limit, which is expected to happen this summer.
House Democrats on Monday blasted Republicans for moving forward with legislation to prioritize debt payments in the event that the nation’s $16.8 trillion debt ceiling is exceeded. Several Republicans will be on hand to detail their plans to avoid another showdown. Reps. Tom McClintock (R-Calif.), Michele Bachmann (R-Minn.), Daniel Webster (R-Fla.) and David Schweikert (R-Ariz.) all are slated to testify.
Housing priorities: A House Financial Services subcommittee will talk about possible avenues to overhauling the Federal Housing Administration with homebuilders, mortgage bankers and academics.
Boosting small businesses: The House Small Business Committee will hold a hearing Wednesday on how tax reform can help small businesses grow with Rep. Dave Camp (R-Mich.), chairman of the tax-writing Ways and Means Committee. The hearing will discuss how changes to the tax code can help smaller firms, many of which file their taxes as individuals.
In a letter to lawmakers ahead of the hearing, Dan Berger, the National Association of Federal Credit Unions’ executive vice president of government affairs, said that credit unions are an important source of capital to the nation’s small businesses and benefit the economy to tune of more than $10 billion a year. In the letter, he stated that the NAFCU believes protecting the credit union federal tax exemption is paramount in any tax reform debate.
Berger expressed support for efforts to simplify the tax code for small businesses where appropriate and working with both the Small Business and Ways and Means Committees moving forward.
Credit union burdens: The House Financial Services Committee will chat with credit unions leaders about what regulatory burdens are holding them back.
ECONOMIC INDICATORS
MBA Mortgage Index: The Mortgage Bankers Association releases its weekly report on mortgage application volume.
Treasury Budget: The Treasury Department releases its March budget data, which is used mostly by the market for year-over-year changes in receipts and outlays.
WHAT YOU MIGHT HAVE MISSED
— Senators seek to cap interest rates on consumer loans
— Senators urge bank regulators to hurry up on ‘too big to fail’ rules
— Liberals push bank break-up bill
— Bailout watchdog: Regulators dropped ball on small business lending fund
— Obama fills out slate of labor board nominees
— Mortgage servicers set to dole out cash to foreclosed homeowners
— Unions, watchdogs press Obama pick to end secrecy on regulations
— Watchdog to IRS: Update 501(c)(4) rules
— Report: Optimism slows for small businesses in March
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