Fri, May 6, 2022 | 5:59PM ET

DC Looks To Roe Impact on Mid-Terms, Money For Ukraine

The news in DC this past week was dominated by the leak of the draft Supreme Court opinion on the Mississippi law that largely overturns the Roe decision legalizing abortion in the US. The draft should have been no surprise as the 6-3 conservative majority has been largely expected to rule against the Roe precedent.

Traditionally, the Supreme Court releases its biggest decision at the end of the term which is the end of June. It is not clear if the leak will speed up the usual SCOTUS timetable. For Democrats the decision may change the subject from inflation to the future of abortion in the US; at this point it is not clear if this will be enough to help Democrats break the track record of the party in the White House losing seats in midterms. With only a six-seat majority in the House, and a tied Senate, Democrats face a daunting task at maintaining control of either chamber.

Outside the furor over the draft SCOTUS decision the Congress is considering the President’s request for $33B in aid to Ukraine. Democrats have taken the position that there is a second urgent need, funding treatment programs for Covid and they would like to attach a $10B Covid bill to the Ukraine legislation. However, Republicans in the Senate oppose linking the two bills and while Ukraine money has broad bipartisan support, at some point the Democrats are likely to agree to a two-track process for Ukraine and Covid. The Administration has said they are running out of money to resupply Ukraine, and it seem unimaginable that Congress would break for Memorial Day without approving the Ukraine package.

Fed Governors

One Fed tidbit is that the FOMC acted this week without the Senate confirming Chair Powell to a second term and with two vacancies. One of the open seats is to be filled by Lisa Cook who is an economist who was nominated by President Biden. Republicans oppose the nomination and voted unanimously against her in the Banking Committee. To win Senate approval will require the vote of all 50 Democratic Senators and a tie-breaking vote by the Vice President. Covid positive tests by the VP and two Democratic Senators has delayed voting; but she should be confirmed by the June FOMC meeting.

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