Mnuchin Delineates Econ. Policy (Jan. 20)

In the twilight moment between administrations, the poetry of the campaign inevitably gives way to the prose of governing.  On the eve of the inauguration, testimony of the Treasury Secretary designate is more of a policy position commitment than when he was  nominated in November.  Now it counts.
Treasury nominee Mnuchin’s confirmation hearing yesterday before Senate Finance saw numerous important policy pronouncements, commitments and agreements — far more than have been elicited in other confirmation hearings.   We inventory these below, as well as instances where agreement was not reached or where the outcome is uncertain.   (Watch hearing)
If nothing else, I hope this update can provide distraction from a day many readers worked hard to go differently…
Best,
Dana
———-
Steven Mnuchin doggedly scheduled private meetings with almost all of the two dozen members of Senate Finance.   It showed time and again as the questions and testimony at his confirmation hearing involved a minimum of grandstanding and witness-baiting.   No doubt the Senators figured out that Mnuchin wants to transact business, not promote an ideology.  His economic growth orientation and laissez-faire baseline are pronounced, but not to the point of being policy eccentric.
Business was indeed transacted at the hearing.  Below is a list of major policy areas where the nominee agreed to a position urged by one or more members of the Committee, as well as those areas where he declined to agree or his response is subject to interpretation or clarification (in colloquy with the Senator indicated in parentheses).
•  Tax Reform/Fiscal Policy
—   Mnuchin Rule — The Ranking Member twice asked the nominee whether he supports the “Mnuchin Rule” that there will be “no absolute tax cuts for the wealthy.” Mnuchin said he was honored to have a rule like Messrs. Volcker and Buffett but agreed to the quoted language, only adding “net net” equivocally at the end.  (Wyden)
—  Debt Limit — It shouldn’t be a surprise perhaps but still, given his iconoclastic boss, it was a relief to the Committee to hear that the nominee avoid the brinksmanship of Congress’ recent efforts to raise the debt limit.  (Bennet)
—  Deficits Don’t Matter:  Mnuchin accepted without elaboration or defense previously stated fiscal policy plans to increase the national debt by $2-3 trillion, (probably more, unless the CBO adopts dynamic scoring).  (Bennet)
—  But Offshore Tax Havens Do: Mnuchin agreed to support legislation to. close tax loopholes permitting overseas tax avoidance by US firms (Crapo)
—  Border Adjusted Tax:  Asked his views on a called the “border adjusted tax” Mnuchin was savvy but agnostic, saying he wouldn’t be surprised if the House passed it though Mr. Trump recently called it “too complicated.”   (Wyden)
•  Financial Regulation
—  Dodd-Frank dismantled?  Doubtful that the core — Titles I and II regulating  systemic risk and the designated Too Big To Fail financial institutions — of DFA, and certainly improbable that the Act as a whole, would be repealed.  (Warner)
 —  FSOC:  Asked point blank if he would repeal the Financial Stability Oversight Council (FSOC) and Orderly Liquidation Authority under Title II, Mnuchin quickly agreed on the former, though he said he could see procedural reforms for the Council.  (Sen. Crapo)
—  Orderly Liquidation Authority:
The nominee did not find fault with the DFA authority that requires FDIC resolution of non-bank financials and prohibits bailouts.
—  Glass-Steagall will not be restored; a “21st Century Glass-Steagall” is possible.
(Cantwell)
—  Volcker Rule:  Mend it (it lacks clarity), don’t end it.  (Cantwell)
—  CFPB:  Mnuchin indicated that he would keep the Consumer Financial Protection Bureau, but he would change how it is funded, primarily through government appropriations instead of the Federal Reserve.  (Carper)
•  GSE Reform
—  GSE Privatization:  The nominee walked back  his earlier statement calling for the privatization of Fannie Mae and Freddie Mac.  “My comments were never that there should be recap and release… I believe that these are very important entities to provide the necessary liquidity for housing finance.” (Warner)
—  Comprehensive GSE Reform:  The status quo of federal government conservatorship of the agencies is “unacceptable” but the  leading alternatives on the table represent “two extremes.”  (Crapo)
Agreement to Disagree
The nominee rejected appeals for agreement on several key issues.  He declined to provide details when Sen. Casey asked what fiscal policy would enable Mnuchin’s promised substantial middle class tax cut.   He also refused to state plans regarding the Earned Income Tax Credit (EITC) despite Sen. Wyden’s inquiry.
And although he ruled out repealing Dodd-Frank’s Title II TBTF policy, he did muse aloud that “we need to have proper regulation before the need for Title II goes away” and that he “would not repeal Title II without a  bankruptcy solution in place,” which may have been a warning to Warner, one of the Title’s principal and proud authors.

41 thoughts on “Mnuchin Delineates Econ. Policy (Jan. 20)”

  1. I precisely had to appreciate you all over again. I am not sure the things that I might have followed in the absence of the entire methods documented by you directly on such industry. It had become a real fearsome crisis in my circumstances, however , finding out the skilled manner you managed that made me to jump over fulfillment. I’m just happier for this guidance and even hope you find out what a great job you are doing instructing some other people using your webblog. Most likely you haven’t got to know any of us.

  2. Hello there I am so delighted I found your blog page, I really found you by accident, while I was
    researching on Aol for something else, Regardless I am here now and would just
    like to say kudos for a remarkable post and a all round
    interesting blog (I also love the theme/design), I don’t have time to read it all at the minute but
    I have book-marked it and also added your
    RSS feeds, so when I have time I will be back to
    read a great deal more, Please do keep up the great jo.
    asmr 0mniartist

  3. It’s appropriate time to make some plans for the future and
    it’s time to be happy. I have read this post and if
    I could I wish to suggest you some interesting things or suggestions.

    Maybe you can write next articles referring to this
    article. I wish to read more things about it! 0mniartist asmr

  4. As the admin of this web site is working, no uncertainty very rapidly it will be renowned, due to its quality contents.
    0mniartist asmr

  5. You have made some really good points there. I checked on the internet for
    more info about the issue and found most people will go along with your views on this website.

  6. We absolutely love your blog and find most of your post’s to be just
    what I’m looking for. Does one offer guest writers to
    write content to suit your needs? I wouldn’t mind creating a post or elaborating on a number of the subjects you
    write related to here. Again, awesome site!

  7. Greetings! Very helpful advice in this particular post!
    It is the little changes that will make the most important changes.

    Thanks for sharing!

  8. I am not sure where you are getting your information, but good topic.
    I needs to spend some time learning more or understanding more.
    Thanks for fantastic information I was looking for this info for my mission.

  9. I am not sure where you’re getting your information, but great
    topic. I needs to spend some time learning much
    more or understanding more. Thanks for wonderful information I was looking for this info
    for my mission.

  10. scoliosis
    Greetings! This is my first comment here so I just wanted to give a quick shout out
    and say I truly enjoy reading through your posts. Can you suggest any
    other blogs/websites/forums that deal with the same topics?
    Thanks a lot! scoliosis

  11. free dating sites
    I would like to thank you for the efforts you’ve put in writing
    this site. I really hope to view the same high-grade content from you in the future as well.
    In fact, your creative writing abilities has encouraged me
    to get my very own blog now 😉 dating sites

  12. Hi, i feel that i noticed you visited my site
    so i got here to go back the choose?.I’m trying to to find things to enhance my site!I suppose
    its ok to use a few of your ideas!!

  13. I blog often and I truly thank you for your information. The article has really peaked my interest.
    I will bookmark your blog and keep checking for new details about
    once a week. I subscribed to your RSS feed too.

  14. Pretty section of content. I just stumbled upon your website and
    in accession capital to assert that I get in fact enjoyed account your blog
    posts. Anyway I will be subscribing to your
    feeds and even I achievement you access consistently quickly.

  15. Every weekend i used to visit this web page, for the reason that i want enjoyment, as this this web site conations truly pleasant
    funny data too.

  16. Just want to say your article is as astonishing. The clarity to
    your post is simply great and i can suppose you’re knowledgeable on this subject.
    Fine with your permission allow me to clutch your RSS feed to keep updated with impending post.
    Thanks a million and please keep up the rewarding
    work.

  17. I know this if off topic but I’m looking into starting my own weblog and was
    wondering what all is required to get setup? I’m assuming having
    a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100% certain. Any recommendations or advice would be greatly appreciated.
    Cheers

  18. Hello there, just became alert to your blog through Google, and found that
    it’s truly informative. I am gonna watch out for brussels.
    I’ll be grateful if you continue this in future. Numerous people will be benefited from your writing.
    Cheers!

  19. Pingback: keto milk

  20. You really make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand.
    It seems too complicated and very broad for me.
    I am looking forward for your next post, I will try to get the hang of it!

  21. Asking questions are actually good thing if you are not understanding anything fully, however this piece of writing presents pleasant
    understanding yet.

Leave a Reply to for asmr

Your email address will not be published. Required fields are marked *