Russia trade legislation proceeds as Congress goes home for recess, Fed watch is on, Early look at 2022 Election

Key Takeaways:

  • Congress passes legislation stripping Russia of favorable trade treatment with US.
  • Fed telegraphing 50bps rate hike in May.
  • Midterm elections: House likely to flip, Senate tight races, first look at PA.

Congress has gone home for two weeks for the Easter/Passover break.  With Congress out of town I will start to look at some of the key races that will determine control of the Congress in this year’s elections.

First, before Congress went home, in a rare moment of genuine bipartisanship the House and Senate  passed a resolution stripping Russia of the trade advantages gained by being granted Most Favored Nation (MFN) or Normal Trade Relations (NTR) in bilateral trade.  The House vote was 420 to 3 and the Senate vote was 100 to 0.  The three NO votes in the House were cast by Marjorie Taylor Greene (R,GA), Thomas Massie (R, KY) and Matt Gaetz (R, FL).

In a Congress that is deeply divided on nearly every issue, Vladimir Putin has done the impossible by getting a substantive bill through the Senate on a vote of 100 to 0!  The vote demonstrates the broad support the Biden Administration’s Ukraine policy has in the Congress, and that nearly all Republicans are walking away from former President Trump’s embrace of President Putin...

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