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Presented by ExxonMobil: Delivered daily by 8 a.m., Morning Money examines the latest news in finance politics and policy. | | | | | |  | | By Kate Davidson and Aubree Eliza Weaver | | | Editor’s Note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our s each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro. | | | It’s the moment we’ve all been waiting for! In “about four days,” that is. President Joe Biden said Tuesday he expects to announce his pick for Federal Reserve chair later this week. Or did he? “With the grace of God and the goodwill of the neighbors, you’re gonna hear that in about four days,” Biden said, setting off much speculation about whether that meant Friday or Saturday. Asked for clarity, a White House official reiterated that the president is expected to make a decision “before Thanksgiving.” That suggests the announcement could slip into next week. On timing: A weekend announcement would be highly unusual. The past five Fed chair nominations have been announced on weekdays — Jerome Powell on a Thursday, Janet Yellen on a Wednesday, Ben Bernanke on a Tuesday and a Monday, and Alan Greenspan on a Monday. A Friday nominee would have to share the spotlight with two turkeys from Indiana whom Biden is set to pardon at the White House that day. [Insert hawk and dove joke here.] The president offered no new insight about whom he might pick, but our friends at Bloomberg reported that it’s officially down to Powell and Fed Governor Lael Brainard, and a final decision on the nominee has not been made yet. WWSD: What would Sherrod do? Meanwhile, Senate Banking Chair Sherrod Brown said he has told the White House who he’d like to see leading the central bank — but wouldn’t let on whether he’s pulling for Powell or Brainard. That makes sense: As chair of the committee that will consider the nomination, Brown’s view and his support for the eventual nominee is crucial. By staying mum publicly, he’s leaving Biden room to make his own decision, avoiding getting crosswise with the White House and keeping his options open. “They’re both clearly qualified,” Brown told reporters on Capitol Hill Tuesday. “I think it’s likely between those two, but I don’t have a read on what they’re gonna do.” Fed watchers point out that Brown, an Ohio Democrat, has backed off remarks he made about Powell in April, when he said he’d be “inclined to support him” if the president renominated him. In July, he criticized Powell over his approach to bank regulation, and said he was undecided over whether to support Powell for a second term as Fed chair. He has not, however, joined Sen. Elizabeth Warren (D-Mass.) in her calls to block Powell. (Nor has any other Democratic senator publicly done so, we might add.) | | | | WOMEN RULE: JOIN US TODAY FOR A TALK ABOUT THE NEW WORLD OF WORK: The way women work, including what is expected and demanded from their workplaces, has been upended. How should businesses, governments, and workers take advantage of this opportunity to rethink what wasn’t working and strengthen working environments for women moving forward? Join the Women Rule community to discuss with leading women and explore how they are seizing the moment. REGISTER HERE. | | | | | Other juicy tidbits from Brown: —He thinks either Powell or Brainard can get through the Senate : “I am certain we would confirm either of them. I am absolutely certain,” he said. It’s always been clear that Powell can easily be confirmed again, as he has support from many Republicans. A Brainard confirmation fight would likely be much tougher, and closer, given the partisan environment in the Senate. —He’s aiming to hold a nomination hearing in December: But he quickly added, “I don’t think it’s essential we do because the term is not up until February. So we’re not going to rush anything here.” The Senate is only in session for two weeks in December, though they could end up staying later. The committee will also have to plan around a Fed meeting on Dec. 14-15, and the 12-day blackout period from Dec. 4-16, during which Fed officials refrain from making public remarks and wouldn’t be available to testify. —He said the White House could announce other Fed picks with the chair : “Either three or four new people will be nominated by the White House. I don’t know that they’re going to do three or four in the next couple of weeks. But I assume they may do one or two with the chair.” IT’S WEDNESDAY—The first Harry Potter film premiered exactly 20 years ago yesterday. Which houses do we think Jay Powell and Lael Brainard would have been sorted into? What about Janet Yellen and Larry Summers? We could play this game all day! Got tips, pitches or wizarding trivia? Please hit us up at kdavidson@politico.com or aweaver@politico.com, or on Twitter @katedavidson. | | | | A message from ExxonMobil: ExxonMobil is reducing our emissions and advancing lower-carbon technologies that support society’s net-zero goals. Expanding business opportunities in lower-carbon technologies where we have competitive advantages – areas like carbon capture and storage, hydrogen and advanced biofuels, which can make a big difference. Our company is uniquely positioned to continue powering economies around the world, while advancing climate solutions that move us all toward a lower-carbon energy future. Learn more at ExxonMobil.com/Solutions. | | | | | | Labor Secretary Marty Walsh speaks at Brookings Institution virtual discussion on the future of work and the workforce at 10 a.m. … Fed Governor Chris Waller speaks on stablecoins at the Cleveland Fed’s financial stability conference at 12:40 p.m. … Joint Economic Committee holds a hearing on demystifying cryptocurrency at 2:30 p.m. … American Enterprise Institute for Public Policy Research holds its virtual housing conference Wednesday and Thursday. NY FED HOSTS TREASURY MARKETS CONFERENCE — The featured speakers include: Deputy Assistant Treasury Secretary Brian Smith at 9 a.m.; New York Fed President John Williams at 9:10 a.m.; keynote from SEC Chair Gary Gensler at 10:20 a.m.; Treasury Undersecretary Nellie Liang at 10:50 a.m.; Acting CFTC Chairman Rostin Behnam at 12:40 p.m. FEDSPEAK — Other Fed speakers today: Governor Michelle Bowman at 11 a.m., San Francisco Fed President Mary Daly at 12:40 p.m. and Chicago Fed President Charles Evans at 4 p.m. YELLEN: CONGRESS CAN PAY THE BILLS THROUGH DEC. 15 — The White House expects to dodge an early-December debt cliff by sitting on a stack of infrastructure cash, Treasury Secretary Janet Yellen said Tuesday, our colleagues Jennifer Scholtes and Caitlin Emma reported. Yellen told Congress she has a high degree of confidence that the Treasury can keep paying the government’s bills through Dec. 15, in part by waiting to transfer $118 billion to the Highway Trust Fund as required by the infrastructure bill. Dec. 15 is significant because it’s when businesses make quarterly corporate tax payments to the IRS. If the Treasury can make it until the 15th, it will then receive an influx of cash that should provide enough of a buffer to keep making on-time payments until the end of December, outside forecasters estimate. The upshot: Congress just got several more weeks of breathing room to figure out how to deal with the debt ceiling. OCC CHIEF: REGULATORS APPROACHING CRYPTO WITH ‘HIGH DEGREE OF CAUTION’ — Our Victoria Guida: “Acting Comptroller of the Currency Michael Hsu on Tuesday said the banking agencies would soon issue a ‘short statement’ on their joint approach to cryptocurrencies that will reflect a vigilant attitude to the nascent asset class. Hsu said in remarks to a financial technology conference hosted by the Federal Reserve Bank of Philadelphia that his agency would also provide more information on its review of its existing crypto policies.” —ICYMI: Victoria reported Monday that bank regulators as early as this week will announce findings from a monthslong review of their cryptocurrency policies — a so-called crypto sprint — and pinpoint areas where they will give more guidance to lenders next year. HOUSE DEMOCRATS APPROVE SPAC RULES — Our Zachary Warmbrodt: “House Democrats on Tuesday advanced new safeguards for special purpose acquisition companies in response to concerns that retail investors might not fully understand the risks involved in the Wall Street fad.” Among the measures: A bill that would remove legal protections that SPACs have when making forward-looking statements, and another that would require SPAC sponsors to disclose fees that risk diluting the shares of investors. Republicans voted against the proposals. CFPB RETHINKS MORTGAGE DISCLOSURES USED TO ID DISCRIMINATION — Our Katy O’Donnell: “The CFPB on Tuesday asked for public feedback on mortgage disclosure rules after finding significant racial disparities in lending patterns. The CFPB issued a request for information on changes to rules implementing the Home Mortgage Disclosure Act, the 1975 law used to identify potential discrimination.” INFLATION WATCH — PAIN AT THE PUMP DRIVES BIDEN’S SUFFERING AT THE POLLS — From our colleague Ben Lefebvre: “Biden aides, including National Security Adviser Jake Sullivan and top economic adviser Brian Deese, as well as the Senior Adviser for Energy Security, Amos Hochstein and White House National Climate Adviser Gina McCarthy and her top aide, Ali Zaidi, met on Friday at the White House to consider actions the administration could take to cool off energy prices, according to three people familiar with the meeting. “They considered several options, those sources said, ranging from releasing oil from the nation's strategic petroleum reserve to ease gasoline prices, curbing crude oil and gas exports, and even softening biofuel blending rules for refineries.” DEMS FORGE AHEAD ON $1.75T BILL OVER INFLATION FEARS — From our colleagues Sarah Ferris and Nicholas Wu: “Even some of the caucus’s most skittish centrists aren’t shying away from President Joe Biden’s sprawling social spending plan. Instead of backing away from another multi-trillion bill this year, they’re leaning in, arguing that the additional spending — as long as it’s entirely paid for — will actually help halt rocketing prices of items like child care or prescription drugs. “‘We’re not spending any more money, unless it’s absolutely paid for. So it doesn’t add to the inflationary index,’ said Rep. Kurt Schrader (D-Ore.), one of the caucus’s most vocal critics of government spending, who is likely to back the bill provided that there’s no bad news from Congress’ scorekeeper in the coming days.” SENATE BANKING READIES FOR OMAROVA HEARING — The Senate Banking Committee is set to consider the nomination of Saule Omarova tomorrow to lead the Office of the Comptroller of the Currency. The big questions ahead of the hearing: How many of the committee’s Democrats — some facing tough reelection bids next year — have concerns about her nomination, and which ones may avoid the hearing altogether? Sen. Jon Tester (D-Mont.), who met with Omarova on Monday, offered this statement to our Victoria Guida: “Some of Dr. Omarova’s past statements about the role of government in the financial system raise real concerns about her ability to impartially serve at the Office of the Comptroller of the Currency, and I’m looking forward to discussing them with her at her hearing.” | | | | A message from ExxonMobil:   | | | | | | Todd Williamson is now head of corporate communications at Equitable Holdings. He was previously a senior vice president of public affairs firm SKDK. | | | | BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we’ve got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don’t miss out on this influential global community. Subscribe now. | | | | | | | | CONSUMERS ARE STILL SPENDING, DESPITE INFLATION WORRIES — NYT’s Coral Murphy Marcos, Ben Casselman and Sapna Maheshwari: “American consumers are dour about the economy and worried about inflation. But that isn’t keeping them from spending . Retail sales jumped in October for the third straight month, the government said on Tuesday, as Walmart and Home Depot both reported strong results for their latest quarters. The reports bolster the view that consumers are absorbing higher prices and splurging on a range of goods, from electronics to home improvement projects.” And the rally in retailers has investors eyeing upcoming reports — Reuters’ Caroline Valetkevitch: “Recent gains in U.S. retailer shares could be put to the test in the coming days as top companies in the sector report quarterly results and investors hunt for clues about how well they have managed supply-chain problems. Retail companies have had a strong run so far this month, with the S&P 500 retailing exchange-traded fund up about 10 percent compared with a roughly 2 percent gain for the S&P 500.” FANNIE, FREDDIE TO BACK HOME LOANS OF NEARLY $1M AS PRICES SOAR — WSJ’s Andrew Ackerman: “The federal government is about to back mortgages of nearly $1 million for the first time. The maximum size of home-mortgage loans eligible for backing by Fannie Mae and Freddie Mac are expected to jump sharply in 2022, a reflection of the rapid appreciation in home prices nationally over the past year. The increase may make it easier and cheaper for some borrowers to buy a home, particularly in more expensive areas of the country, but the higher limits are also likely to elevate debate about how big of a mortgage is too big to be backed by the government.” FED OFFICIALS SAY HIGH INFLATION IS WEIGHING ON CONSUMERS — Reuters’ Jonnelle Marte: “Federal Reserve officials said on Tuesday they are vigilant of the ways that higher inflation can affect U.S. households and dampen consumer sentiment and want to get it under control. While wages are rising for some workers, consumer sentiment is down to a ‘level that you might associate with a recession,’ said Richmond Fed President Thomas Barkin, citing the consumer sentiment survey from the University of Michigan.” | | | | A message from ExxonMobil: Every day, more than 23,000 scientists and engineers at ExxonMobil work to develop solutions for the world’s most complex energy challenges. It’s something we’ve been doing for nearly 140 years, and it’s where our focus remains for the next century.
Today, that means reducing our emissions and advancing lower-carbon technologies that support society’s net-zero goals. It means expanding business opportunities in lower-carbon technologies where we have competitive advantages – areas like carbon capture and storage, hydrogen and advanced biofuels, which can make a big difference in the higher-emitting sectors of manufacturing, power generation and heavy-duty transportation.
ExxonMobil is uniquely positioned to continue powering economies around the world, while advancing climate solutions that move us all toward a lower-carbon energy future.
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