Ukraine continues to dominate the focus of policy makers in DC. President Biden has been in Brussels and Poland this week both consulting with allies on policy and assuring Poland of US support as they take the lead role in dealing with the refugee crisis created by the war.
As the war continues into its second month President Putin sits in the Kremlin looking for either a pathway to victory, or an exit strategy to what appears to be the most serious miscalculation of his tenure as Russian leader. This past week NATO met and reaffirmed its commitment to helping Ukraine as supplies continue to flow into the war-torn country. President Biden met with the NATO and G7 leaders in Brussels and then traveled to Poland to demonstrate commitment to that nation’s leadership role in helping refugees from the conflict. Biden has indicated that the US could take as many as 100,000 refugees.
In an interesting statement, White House national security adviser Jake Sullivan said that to date there has been no evidence of China helping Russia. In my view China is at a policy crossroads as its future is clearly tied to good trade relations with the West, but its ties to Russia could allow it to play a critical role in trying to find a road to peace. Israel and China both have ties to Russia and may be able to find the elusive exit for Putin who clearly is not just going to walk away a defeated combatant.
Nominations
The Senate Banking Committee has moved the nominations of Philip Jefferson and Lisa Cook to fill two vacancies on the Federal Reserve Board. While Cook only received Democratic votes in the Committee she may do better on the Senate floor; but in any case Vice President Harris would insure her approval by breaking a tie. Jefferson is likely to get a strong bipartisan vote. The vote could occur as early as next week, but they will surely be confirmed prior to the next FOMC meeting the first week of May.
The Banking Committee also approved the nomination of Jay Powell to serve another term as Fed Chair, with only Senator Elizabeth Warren voting against. Powell should get a strong bipartisan vote for his second term.
This past week saw drama before the Senate Judiciary Committee during the confirmation hearing of Judge Ketanji Brown Jackson to serve on the SCOTUS. Republicans on the Committee appeared to be united in their opposition to the nomination, and on Thursday Republican Leader Mitch McConnell officially announced his opposition. However, on Friday Senator Joe Manchin announced his support for Judge Jackson, with Vice President Harris holding the tie breaking vote Judge Jackson should win approval in the next few weeks.
Oil The House Energy and Commerce Committee is expected to summon oil company executive for a hearing next month. There are also reports that the House tax writing Ways and Means Committee will start considering a windfall profits tax on oil companies. As gasoline prices rise this is going to be a big debate in DC in coming weeks.
