Guns, Reconciliation and MBS

As Congress returns next week the focus is likely to be on gun legislation after the mass killings of children and teachers at the Uvalde elementary school.  The House is likely to set up votes on several measures, and in the Senate a bipartisan group of Senators have had talks over the Memorial Day break to see if a consensus is possible.

Reconciliation

For the last few weeks Majority Leader Chuck Schumer and Senator Joe Manchin have been in discussions about the possibility of a much slimmed-back Build Back Better bill using the Budget Reconciliation process.  Manchin realizes that the next few months before the midterm elections may be his moment of greatest leverage as any change in the 50/50 Senate will diminish his power. 

Senator Manchin has intimated that he would like to see some reform in prescription drug pricing and also a reasonable approach to climate change that takes care of coal workers in West Virginia.  These appear to be the topics Schumer and Manchin are focused on, along with some way to pay for the programs, as not increasing the deficit during high inflation is a key part of  Manchin’s agenda.

Oil and MBS

A growing topic of chatter in DC is the future relationship between the US and Saudi Arabia under the Saudi leadership of Prince Mohammed bin Salman (MBS). This week, the Saudi’s led OPEC to announced higher production levels which are clearly timely in wake of global boycotts of Russian oil. It seems like a positive first step in the Kingdom’s strategy to improve relations with the West, and especially the US.

There have been repeated rumors from the White House about a Biden trip to Saudi Arabia, and it is difficult to imagine such a trip without a Biden/MBS sit down.  This is likely to be one of the key policy focuses in coming weeks, with big-time global economic implications.

Disclosures (show)

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