- Trump creates crypto task force
- New administration takes executive actions
- Cabinet gets confirmed
- FOMC meets on interest rates
President Donald Trump hit the ground running with executive orders. Those included the creation of a White House task force on crypto leadership and a tour of devastation in North Carolina and California.
Here is a link to the White House fact sheet on the Crypto Task Force:
The president pardoned all participants in the Jan. 6 attack on the Capitol, took the U.S. out of the World Health Organization and Paris Climate Accord, ended DEI programs within the Federal government, and opened drilling and mining rights on federal lands. Perhaps his most impactful order has tried to end birthright citizenship, which will be tested in the courts as to its validity under the 14th Amendment.
Several State Attorney Generals challenged the birthright citizenship order, and there was a quick restraining order. This complex issue is likely to be appealed and have a final resolution before the U.S. Supreme Court.
The president got a big assist from the Republican-controlled Senate with the approval of key cabinet officials for state, defense, homeland security and the CIA. Scott Bessent is likely to be approved to serve as Treasury Secretary early this week; but tougher fights are foreseen for Tulsi Gabbard for Director of National Intelligence, Kash Patel to lead the FBI and Robert Kennedy Jr. to head Health and Human Services. However, the Vice President’s tie-breaking vote to confirm Pete Hegseth as Department of Defense Secretary demonstrates the unity of Senate Republicans in support of the President’s nominees and programs.
In the first week of the new administration, the issue of tariffs was muted, but the president did threaten to take actions against Mexico, Canada, and China in early February. However, some clarity may come once Bessent is in place and bilateral government-to-government talks can begin. Ironically, the first use of tariffs as a negotiating tool was seen this weekend when Trump announced a 25% tariff on all imports from Colombia. That happened when the country refused a plane filled with deported immigrants, who were illegally in the U.S. and most had committed criminal acts. The strategy worked and the Colombians changed their policy, and the tariffs were lifted within hours of the initial announcement.
Trump and Republicans meet
House Republicans have gathered at the Trump Doral Resort in Miami to meet with Trump and have discussions on how best to pass the new president’s agenda. They discussed how to deal with the twin budget issues of passing a Continuing Resolution to keep the government open past the March 14 deadline and the need to pass an increase or suspension of the debt ceiling before it is reached at some point likely around the middle of June. The exact date is unknown.
One big concern remains that a handful of House Republicans have never voted to increase the debt ceiling and have given no indication they will take a different position under the rule of Trump. Indeed, in December, when Trump tried to get a bill through the House with an increase in the Debt Ceiling 38 Republican House Members voted no.
The goal is to start a strategy discussion this week at Doral and consider options that range from a Republican only measure such as Reconciliation or a deal with Democrats that would fund emergency assistance to California and appropriate funding for some programs favored by Democrats as part of the 2025 Continuing Resolution.
FOMC
The Federal Open Markets Committee (FOMC) meets on Tuesday and Wednesday to set interest-rate policy. As is the Committee’s practice, on Wednesday at 2:00pm the official statement will be released and at 2:30 Chair Powell will host a press conference. This will be the first press conference since the inauguration of the new president.
At the last presser, the Chair was asked if he’d quit if asked, and he gave a firm no, and Treasury Secretary Bessent stated that there was no intent to ask the Republican appointed Chair to leave. With the threats of tariffs now more imminent, the topic is likely to come up, and the Chair’s comments on this and other issues related to the newly installed government will take on a new urgency and make for must-watch television.
