Post-McHenry money moves

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Feb 05, 2024 View in browser   By Zachary Warmbrodt Presented by QUICK FIX Republicans are bracing for a Wall Street windfall triggered by the looming exit of House Financial Services Chair Patrick McHenry. McHenry’s retirement at the end of this session has the GOP weighing his potential successor atop the committee. The final decision will come down to politics, policy and money. Eleanor Mueller and Jasper Goodman have a deep dive into the race to shore up the last of those factors, which could help drum up critical campaign cash for Republicans as they fight to hold their majority. It’s also the primary way that K Street can influence which of its allies will be running the committee for years to come. (Read Eleanor and Jasper’s full story here, including a few handy charts.) Rep. Bill Huizenga of Michigan, the only Republican who’s announced a bid to succeed McHenry, said in an interview that he’s aggressively ramping up fundraising as part of his push. Reps. Andy Barr of Kentucky and French Hill of Arkansas are expected to do the same if they formally jump into the race. “Leadership loves this because it enables the NRCC to squeeze more resources out of all these people,” said Rep. Frank Lucas of Oklahoma, the most senior Republican on Financial Services. “They’re going to encourage a long and bloody battle, because: Cha ching, cha ching, cha ching.” Per the latest campaign finance disclosures, Barr is the fundraising frontrunner. He collected nearly $2.3 million for his campaign and leadership PAC last year, according to OpenSecrets. Hill raised $1.9 million and Huizenga brought in $1.5 million. For context, the average House member raised $1.6 million. But in terms of who’s spreading the wealth, Hill has the lead. Hill, Barr and Huizenga have been asked by the NRCC to pay at least $525,000 in dues this cycle, and so far Hill has paid $920,775, according to a Republican aide granted anonymity. Barr has put in $426,998. Huizenga has contributed $164,875. Hill, who is the committee’s vice chair, also contributed the most to other Financial Services members directly last year: $34,500. Huizenga gave $32,500 and Barr gave $27,500. Huizenga marked his 55th birthday Wednesday by bringing in $130,000 at a Sazerac House fundraiser featuring Speaker Mike Johnson. (A colleague earlier in the week stopped to congratulate him for having “made it rain.”) “I don’t really think of that when I consider who the next chair should be, but let’s face it: It helps,” said Rep. Dan Meuser (R-Pa.), who serves on Financial Services. “A prolific fundraiser helps us keep the majority." Happy Monday — Any fundraising events or figures that you want to flag? Send to zwarmbrodt@politico.com. A message from Chime: Tired of overdraft fees? Learn how Chime is different. Chime is expanding banking with no overdraft fees to everyday people. Cost is a barrier to many, which is why Chime never charges overdraft or monthly fees — and there are no minimum balance requirements for our checking and savings accounts. We reach customers traditional banks don't, can't or won't and are helping everyone unlock financial progress. Learn more.   Driving the Week Monday … World Bank President Ajay Banga gives a fireside chat at the Center for Global Development at 9 a.m. … The Fed releases its bank lending survey (SLOOS) at 2 p.m. … House Budget Chair Jodey Arrington discusses the implications of a fiscal commission at AEI at 4 p.m. Tuesday … Treasury Secretary Janet Yellen testifies on FSOC’s annual report at House Financial Services at 10 a.m. … NCUA Chair Todd Harper speaks at Brookings at 11 a.m. Wednesday … U.S. trade balance data is out at 8:30 a.m. … Fed Governor Adriana Kugler talks about her economic outlook at Brookings at 11 a.m. … Richmond Fed President Tom Barkin speaks at the Economic Club of Washington, D.C. at 12:30 p.m. … CBO releases its budget and economic outlook at 2 p.m. Thursday … Yellen testifies on FSOC at Senate Banking at 9 a.m. … HP CEO Enrique Lores speaks at the Economic Club of Washington, D.C. at 12:30 p.m. Driving the day Rest in peace — Mike Gill, Housing Policy Council senior vice president and former CFTC chief of staff, died Sunday after being shot during a carjacking spree in Washington. He was 56. Jerome Powell on ‘60 Minutes’ — The Fed chair said in an interview airing Sunday that the central bank will probably lower rates this year but that March is probably too soon to do so. As Victoria Guida reports, the Fed wants to see more inflation data. “It doesn’t need to be better than what we’ve seen, or even as good. It just needs to be good,” he said. “And so, we do expect to see that. And that’s why almost every single person on the [Fed’s rate-setting committee] believes that it will be appropriate for us to reduce interest rates this year.” Powell also warned that the national debt is “unsustainable.” “It’s time for us to get back to putting a priority on fiscal sustainability,” he said. “And sooner’s better than later.” ICYMI: Former President Donald Trump said in a Fox Business interview that he would not reappoint Powell as Fed chair. Trump called him “political” and suggested that he might lower interest rates to help Democrats win the election. Powell has said “we don’t think about political events” in formulating monetary policy. Trump also warned about the misuse of AI. "Something has to be done about this, and it has to be done fast, and nobody really knows what to do,” he said. POLITICO has a new breakdown of the ways AI is quietly changing everyday life, including how people buy houses.   CONGRESS OVERDRIVE: Since day one, POLITICO has been laser-focused on Capitol Hill, serving up the juiciest Congress coverage. Now, we’re upping our game to ensure you’re up to speed and in the know on every tasty morsel and newsy nugget from inside the Capitol Dome, around the clock. Wake up, read Playbook AM, get up to speed at midday with our Playbook PM halftime report, and fuel your nightly conversations with Inside Congress in the evening. Plus, never miss a beat with buzzy, real-time updates throughout the day via our Inside Congress Live feature. Learn more and subscribe here.     On the Hill Brown and Scott’s win in the border bill — The $118 billion immigration and national security bill that senators released Sunday includes new fentanyl trafficking sanctions that Senate Banking Chair Sherrod Brown and ranking member Tim Scott have been trying to enact.   A message from Chime:   Economy GOP’s economic pitch gets trickier — Adam Cancryn and Meridith McGraw have a look at how the surprising strength of the U.S. economy is forcing Trump and his allies to contort the talking points they thought would guide them back to the White House. “That is the question of the day,” said economist Stephen Moore, who is close to the Trump campaign. “You can’t blame the president when policies go wrong and then say he’s not responsible if things are going right.” Trump allies say his best argument against President Joe Biden may be that prices are still higher than they were under his administration. Wells Fargo’s Super Bowl menu – Food economists at Wells Fargo are out with a breakdown of what snacks might get you the most bang for the buck this weekend. Based on early January data, fresh chicken wing prices are down by 5 percent from a year ago and frozen prices are down by 11 percent. Producers delivered “more and heavier” chickens coming off of high feed costs and avian influenza. Shrimp prices are down by more than 6 percent amid strong production. Regulatory Corner MM first look: Fintech firms nudge the FDIC — In a new letter, the American Fintech Council urges the FDIC to “carefully consider its posture towards innovation in financial services and to pursue additional efforts to connect with responsible financial services companies.” It comes as top House Financial Services Republicans warn that the agency has “moved innovation backwards.” “Agency engagement with industry is crucial to ensuring that pragmatic regulatory frameworks and effective oversight of the modern banking system,” AFC CEO Phil Goldfeder said in a statement.   YOUR GUIDE TO EMPIRE STATE POLITICS: From the newsroom that doesn’t sleep, POLITICO's New York Playbook is the ultimate guide for power players navigating the intricate landscape of Empire State politics. Stay ahead of the curve with the latest and most important stories from Albany, New York City and around the state, with in-depth, original reporting to stay ahead of policy trends and political developments. Subscribe now to keep up with the daily hustle and bustle of NY politics.      World view Russia’s economic surprise — The FT has a dive into the economic resilience of Russia, which is spending its way out of a recession and flouting Western sanctions. The IMF expects Russia’s economy to grow by 2.6 percent this year, a 1.5 percentage point increase over what it predicted last October. The FT also reports that G7 nations are weighing plans to issue debt to help fund Ukraine, using Russian assets as a backstop. Canada extends housing ban — Per Bloomberg, Canada has lengthened a ban on foreign home buyers by two years as the country’s real estate market begins to show signs of a rebound. U.S. embassy account becomes Chinese ‘Wailing Wall’ — Reuters reports that Weibo users are venting their frustration at China’s slowing economy and the weak stock market via comments on a U.S. embassy post about protecting wild giraffes. Fly Around People moves — Yana Miles, previously of the American Fintech Council and House Financial Services, has joined BNY Mellon as senior vice president and policy lead for global public policy and government affairs … Ian Moloney recently joined the American Fintech Council as head of policy and regulatory affairs, and Elizabeth Gorz is now the group’s chief strategy officer and head of legislative affairs A message from Chime: Chime is expanding banking with no overdraft fees to everyday people. Cost is a barrier to many, which is why Chime never charges overdraft or monthly fees — and there are no minimum balance requirements for our checking and savings accounts. We reach customers traditional banks don't, can't or won't and are helping everyone unlock financial progress. Learn more.     Follow us on Twitter Mark McQuillan @mcqdc Zachary Warmbrodt @Zachary Victoria Guida @vtg2 Declan Harty @ @declanharty Eleanor Mueller @eleanor_mueller Katy O'Donnell @katyodonnell_ Sam Sutton @samjsutton   Follow us

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