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Presented by Blackstone: 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. McHENRY PLANTING FLAGS — North Carolina Republican Patrick McHenry, who has decided to seek a turn as chair of the Financial Services Committee should the GOP win the House, has already started to put down markers on pressing policy questions that would be in front of the panel next year. Key among them: what to do about cryptocurrency regulation. Earlier this month, he also released a report calling for legislation in line with the 2012 JOBS Act, bipartisan legislation signed by then-President Barack Obama that eased rules for companies seeking to raise money in the stock market. McHenry’s previous role in House GOP leadership, where he served as chief deputy whip, had prompted speculation that he might return to a leadership position rather than pursue the committee chairmanship, our Zachary Warmbrodt reported. With Republicans favored to take back the House, McHenry's choice will begin to give committee watchers a clearer outlook of the panel's agenda for the next few years.
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Rep. Patrick McHenry (R-N.C.) will seek the House Financial Services Committee chair role if Republicans win the House next year. | Al Drago/AP | Zach writes to MM: McHenry is no doubt a conservative and would likely use his gavel to pursue intense investigations of the Biden administration, as he did as oversight subcommittee chair in the Obama years. But in his current role he has managed to strike some bipartisan deals with Chair Maxine Waters (D-Calif.) and other Democrats on issues including flood insurance and anti-money-laundering rules. He has talked in detail about potential common ground with Democrats on crypto policy. With Democrats facing internal disagreements over the future of digital currency, a McHenry chairmanship could accelerate stalled legislation around topics like stablecoins if Republicans can compromise with a growing number of crypto-friendly colleagues across the aisle. He’ll probably come across as more pragmatic and flexible than the last Republican chair — Jeb Hensarling — but only time will tell. FIRST IN MM: FINANCIAL FIRMS, ADVOCATES CALL FOR NATIONAL FINANCIAL INCLUSION STRATEGY — More than three-dozen financial services companies, consumer advocacy groups and nonprofits are calling on the Treasury Department to establish a presidential commission to create a national, interagency financial inclusion strategy. In a letter to Treasury Secretary Janet Yellen and Deputy Secretary Wally Adeyemo, shared exclusively with MM, the companies and groups say the industry has taken meaningful steps “to build an inclusive financial system to fully address the systemic barriers to financial inclusion,” but said, “we need to coordinate meaningful action at the highest levels.” “Making sure that every person in America has easy access to safe and affordable bank accounts, payment tools, saving and retirement accounts, credit, insurance, and safety net programs when needed would be a critical—and monumental—step toward an inclusive economy,” they wrote. Among the companies that signed the letter, coordinated by the Aspen Institute — Citi, Capital One, Intuit, H&R Block, Mastercard, PayPal, Prudential, Visa and Wells Fargo. Also on the letter: Accion Opportunity Fund, American Fintech Council, Bank Policy Institute, Code for America, Prosperity Now and Urban League, among others. They said a commission, comprised of senior government officials, members of historically excluded communities, consumer advocates and experts, would “have the responsibility of supporting a financial system built for the future with the flexibility to ensure that emerging technologies are designed in an inclusive and equitable manner with proper consumer protections in place.” “In order to ensure that all communities and households benefit from the emerging economic recovery, this work must begin as soon as possible,” the wrote. IT’S TUESDAY — Just sitting over here, daydreaming about all the things we’d do with $44 billion besides buying a social media platform. We hear mega yachts are pretty sweet. Have a tip or story idea for us? Send it to: kdavidson@politico.com or @katedavidson, or aweaver@politico.com or @aubreeeweaver.
| | A message from Blackstone: Blackstone's investment approach is focused on the future. We identify companies that are shaping a stronger economy and help them accelerate their growth. We can deliver for our investors by strengthening the communities in which we live and work. Learn more. | | | | | | IMF First Deputy Managing Director Gita Gopinath speaks at a Peterson Institute for International Economics event at 9 a.m. … Senate Banking votes on U.S. Mint and Treasury nominations at 10 a.m. … CFPB Director Rohit Chopra testifies on the agency’s semi-annual report at Senate Banking at 10 a.m. … NEC Deputy Director Bharat Ramamurti speaks on profits and the pandemic at the Brookings Institution at 2 p.m. … Senate Banking subcommittee hearing on policy tools to combat bottlenecks and inflation at 2:30 p.m. CHOPRA TO THE HILL — CFPB’s Chopra is headed to Capitol Hill today for the first time since last fall, shortly after he took the helm of the agency. This is also the first time Chopra will face Republicans following his vote at the FDIC — along with FDIC Director Marty Gruenberg — to seek comment on a potential bank merger proposal, sidestepping then-FDIC Chair Jelena McWilliams.
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CFPB Director Rohit Chopra speaks at a White House event on medical debt this month. | Jacquelyn Martin/AP | Expect Republicans on the Senate Banking Committee to focus heavily on the FDIC flap, which led to McWilliams’ resignation late last year, a Senate Republican aide tells MM. Here’s Sen. Pat Toomey , the panel’s top Republican, in remarks prepared for delivery this morning and shared with MM: “King Louis XIV famously said, ‘L’etat c’est moi,’ meaning ‘I am the state.’ All political authority rested with one man. It seems the CFPB under Director Chopra believes it has similar authority. “Under Director Chopra, the CFPB is more out of control than ever before, and the contagion is spreading. It’s past time for Congress to bring accountability to the CFPB by making it subject to the appropriations process and enacting other needed reforms. The current Congress won’t do that. The next one should.” Chair Sherrod Brown (D-Ohio) in his opening statement will argue Republicans want to “distract people with convoluted process arguments.” “For four years, the CFPB was run by a director and pressured by an Administration that always — always — looked out for corporations over workers. The director was a favorite of payday lenders. Instead of being a voice for consumers, they turned the agency into yet another arm of corporate power,” he said, adding, “you are doing your job — fighting, and standing up for hundreds of millions of consumers and small banks and businesses and their communities, rather than big corporations.” GENSLER WANTS MORE BOND TRADE TRANSPARENCY — Our Sam Sutton: SEC Chair Gary Gensler said Tuesday he wants to shorten the amount of time bond traders have to report their trades to industry self-regulatory organizations. “‘The academic research overwhelmingly finds that post-trade transparency improves efficiency and competition in the markets they serve,” Gensler said in prepared remarks to the City Week conference hosted in London. ‘The information reported to these systems, though, has not kept pace with changes in our markets and with technological advances.’” HOW ELON MUSK LEARNED THE WAYS OF COMBAT IN WASHINGTON — Our Emily Birnbaum: “Elon Musk has publicly ridiculed the Securities and Exchange Commission , scrapped with federal airwaves and car-safety regulators and sued the Pentagon to gain access to military space contracts. “But with his Twitter acquisition, the billionaire who founded Tesla and SpaceX has cast himself as a central player in Washington’s most contentious political battles — a role that could bring him a whole new level of blowback.” Stocks trembled: U.S. stocks stormed back from sharp losses in the morning to notch gains Monday, the latest round of turbulence for Wall Street, AP’s Damian J. Troise reported. “The S&P 500 climbed 24.34 points, or 0.6 percent, to 4,296.12 after erasing an early 1.7 percent loss. Stocks of internet-related companies helped lead the way, including Twitter, which jumped 5.7 percent” on the Musk news. CFPB TO INVOKE LONG-UNUSED AUTHORITY TO REGULATE FINTECHS — Our Katy O’Donnell: “The CFPB said Monday it is reviving a mostly unused procedure to examine nonbank companies that it believes pose risks to consumers, in a move that expands the bureau’s authority to regulate financial technology firms. “‘Given the rapid growth of consumer offerings by nonbanks, including fintechs, the CFPB is invoking a dormant authority granted by Congress to ensure these companies can be held to the same standards as banks,’ CFPB Director Rohit Chopra tweeted of the decision.”
| | | | DON'T MISS ANYTHING FROM THE 2022 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is excited to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage and insights from the 25th annual Global Conference. This year's event, May 1-4, brings together more than 3,000 of the world’s most influential leaders, including 700+ speakers representing more than 80 countries. "Celebrating the Power of Connection" is this year's theme, setting the stage to connect influencers with the resources to change the world with leading experts and thinkers whose insight and creativity can implement that change. Whether you're attending in person or following along from somewhere else in the world, keep up with this year's conference with POLITICO’s special edition “Global Insider” so you don't miss a beat. Subscribe today. | | | | | | | | POWELL TO HOLD FIRST IN-PERSON PRESS CONFERENCE SINCE START OF PANDEMIC — Bloomberg’s Alister Bull: “Federal Reserve Chair Jerome Powell is set to hold his first in-person press conference since the pandemic began, meeting reporters following the conclusion of the U.S. central bank’s two-day policy meeting. The Fed announced the press conference in an emailed statement Monday. The last post-meeting press briefing by Powell to be held in person was March 3, 2020, as the Fed decided to cut interest rates a half percentage point, just before Covid-19 sent the country into lockdown.” SENATE TEES UP VOTES ON BIDEN’S FED NOMINEES — WSJ’s Nick Timiraos: “The Senate moved ahead Monday evening with consideration of President Biden’s nominees to the Federal Reserve, beginning with a procedural vote clearing the path to confirm governor Lael Brainard later this week as the central bank’s vice chairwoman. “The 54-40 tally indicated Ms. Brainard will be confirmed with bipartisan support. Eight Republicans joined 46 senators who caucus with the Democrats in moving her nomination forward. Four Fed nominees are up for confirmation, and it is unknown if the two who would be new to the board would be seated ahead of next week’s rate-setting meeting.”
| | | | JOIN US ON 4/29 FOR A WOMEN RULE DISCUSSION ON WOMEN IN TECH : Women, particularly women of color and women from disadvantaged socioeconomic backgrounds, have historically been locked out of the tech world. But this new tech revolution could be an opportunity for women to get in on the ground floor of a new chapter. Join POLITICO for an in-depth panel discussion on the future of women in tech and how to make sure women are both participating in this fast-moving era and have access to all it offers. REGISTER FOR THE CHANCE TO JOIN US IN-PERSON. | | | | | | | | RAPID INFLATION AND LOWER EMPLOYMENT. HOW THE U.S. PANDEMIC MEASURES UP — NYT’s Jeanna Smialek and Ben Casselman: “The United States spent more aggressively to protect its economy from the pandemic than many global peers, a strategy that has helped to foment more rapid inflation — but also a faster economic rebound and brisk job gains. “Now, though, America is grappling with what many economists see as an unsustainable worker shortage that threatens to keep inflation high and may necessitate a firm response by the Federal Reserve. Yet U.S. employment has not recovered as fully as in Europe and some other advanced economies. That reality is prodding some economists to ask: Was America’s spending spree worth it?” DOES THE U.S. TRUCKING DOWNTURN FORESHADOW POSSIBLE ECONOMIC GLOOM? — Reuters’ Lisa Baertlein: “Craig Fuller monitors millions of transactions between U.S. truckers and their customers as chief executive of transportation data company FreightWaves — and he does not like what he is seeing. There has been an unexpectedly sharp downturn in demand to truck everything from food to furniture since the beginning of March and rates in the overheated segment that deals in on-demand trucking jobs — known as the spot market — are skidding. “‘It basically just dropped off a cliff,’ said Fuller, who is concerned that the United States is at the start of a trucking recession that could decimate truckers' ability to dictate prices and push some small trucking firms into bankruptcy.”
| | | | A message from Blackstone:   | | | | | | Jeanne Arnold has joined Nareit as vice president of industry communications. She spent nearly 10 years before that at the Investment Company Institute, where she served most recently as director of media relations. Elizabeth Boison has joined Hogan Lovells as a partner in its global regulatory and intellectual property, media and technology group. Boison was most recently an attorney in the Justice Department’s Bank Integrity Unit and National Cryptocurrency Enforcement Team. She was also detailed previously to the Financial Crimes Enforcement Network.
| | | The Treasury’s latest tax collection may preview how the shrinking of the Federal Reserve’s $9 trillion balance sheet, or quantitative tightening, will unfold for the markets and global liquidity. — Bloomberg’s Alex Harris The U.S. dollar scaled two-year peaks, as a wave of risk aversion hit global markets, while the Chinese yuan posted its largest three-day losing streak in nearly four years on growing worries of an economic slowdown in the world's second-largest economy. — Reuters’ Gertrude Chavez-Dreyfuss Worries about the war in Ukraine , China’s Covid-19 outbreak, a U.S. or European recession and surging global inflation are making a long-spurned asset increasingly popular with Wall Street’s top money managers these days: cash. — WSJ’s Dion Rabouin
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