This week’s big debt limit news: Biden, McCarthy to meet — Biden and McCarthy are scheduled to meet Wednesday, McCarthy said Sunday on CBS. The California Republican said he expects to eventually come to an agreement with Biden on the debt ceiling, despite the White House rejecting any negotiation. McCarthy wants to use debt limit talks to enact spending cuts but said Sunday he wants to take Social Security and Medicare off the table. Cuts to defense spending are still in play. — Sen. Elizabeth Warren had this to say about the debt ceiling, when MM asked about payment prioritization — “While Treasury should of course keep all options on the table to prevent this manufactured crisis, Republicans raised the debt ceiling three times without conditions under President Trump and they must do so again here. Once the hostage-taking ends, Congress can address the budget deficit, starting with rolling back tax giveaways for the wealthy and giant corporations and actually funding enforcement against rich tax cheats.” FOMC preview — The Fed on Wednesday will likely raise interest rates by a quarter percentage point, which would mark the second FOMC meeting in a row where the central bank slowed its attack on inflation, WSJ’s Nick Timiraos reports. Looking forward, Fed officials are split on how to forecast inflation because of the tight labor market. McHenry reboots Financial Services with retreat, first meeting — POLITICO’s Eleanor Mueller has a rundown of what will be a busy couple of weeks at House Financial Services under new Chair Patrick McHenry. McHenry will convene GOP committee members for a retreat today in Rayburn. It follows another private meeting last week where he gathered members and laid out his vision. “We’re not going anywhere cool. We’re just going to work,”incoming Capital Markets Chair Ann Wagner said. “It’s going to be about work, work, work, lunch — and work.” McHenry and his subcommittee chairs are slated to give presentations, according to an aide. Wagner said it’s “going to be heavy on capital formation, digital assets stuff, data privacy stuff.” “We’ve got a lot of new members on the committee,” said Rep. Blaine Luetkemeyer, who will chair the national security subcommittee. The committee’s hearing schedule is taking shape. Financial Services will meet Wednesday at 1 p.m. to vote on the committee’s structure and rules. You can dig into the details here. The next hearing will probably be on China, according to Luetkemeyer, though he said it wasn’t set in stone. The potential schedule, according to sources tracking the committee, also includes hearings on accredited investors and empowering entrepreneurs on Feb. 8 followed by a data privacy hearing on Feb. 9. The committee has not announced any hearings after Wednesday and did not respond to a request for comment. McHenry is “very clear-eyed on what this opening act is going to be,” said Rep. Andy Barr, who will chair the Financial Institutions and Monetary Policy subcommittee. “We're going to be very busy.” A preview of Financial Services oversight — Eleanor has a Q&A with Rep. Bill Huizenga, who will chair the Financial Services Oversight and Investigations subcommittee. Huizenga said he wants to emulate former Democratic Rep. John Dingell. Huizenga’s fellow Michigander became famous for firing off “Dingellgrams” requesting information from agencies when he led House Energy and Commerce. Huizenga’s early targets include NYSE’s recent trading glitch, the SEC, crypto and ESG investing. He said McHenry has been clear that the “full committee's gamut of issues is squarely within the subcommittee's oversight function.” “I intend to utilize that,” he said.
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