We’re not out of the woods yet
Despite President Biden signing the budget bill into law that suspended the debt limit, a top credit-rating agency still has its eyes on the US due to our polarized politics and government gridlock.
FIRST THINGS FIRST
President Joe Biden on Saturday signed the legislation to suspend the debt limit through the end of next year, which means the full faith and credit of the US remains in tach and we won’t have to worry about increasing the nation’s borrowing limit again until after the 2024 presidential election.
But despite the bill’s passage, the US’s credit rating remains on negative watch by one of the top credit-rating agencies in the world, a sign that the months-long crisis carries consequences that even a last-minute bipartisan compromise can’t subdue.
Heather Boushey, a member of President Biden’s Council of Economic Advisers, told Supercreator in an interview on Friday that although the administration is pleased the president was ultimately able to work with Congress to suspend the debt limit, the situation did add uncertainty and challenges for the economy.
“It remains the case that it was the Republicans who held the economy hostage to this negotiation and that does undermine our ability to make sure that we’re focused on what really matters to the American people and to the US economy, which is making sure that we’re creating good jobs, making sure that the US economy is competitive, and is growing,” Boushey said.
White House Budget Director Shalanda Young, one of the chief negotiators of the Biden-McCarthy budget agreement, said during a CNN interview on Sunday that the Fitch decision is one of the reasons why the administration argued against Republicans pushing the economy to the brink to force extreme policy concessions.
“I’m glad we finally got [a deal],” Young said. “But we have warned against this brinksmanship. It’s bad for the country. It’s bad for the global economy.”
Fitch, one of the “Big Three” credit rating agencies, along with Moody’s and Standard & Poor’s, first placed the US on ratings watch negative late last month when it was still unclear if the White House and House Republicans would reach a deal to raise the nation’s borrowing limit and avoid default.
Standard & Poor downgraded the US credit rating for the first time in the country’s history in 2011 after another debt limit crisis, this time between former President Barack Obama and former Speaker John Boehner. And weeks earlier European credit-rating agency Scope placed the US’s sovereign rating under review for downgrade.
In its announcement that it would maintain the Ratings Watch Negative on the US rating, Fitch acknowledged the positive step Congress took to suspend the debt limit and agree to modest deficit reductions over the next two years. And the size of the US economy, high gross domestic product per capita, dynamic business environment, and the US dollar’s status as the preeminent reserve currency are all pluses.
But the repeated political standoffs around the debt limit and last-minute suspensions before the government runs out of cash to pay its bills lower confidence in the country’s ability to govern on fiscal and debt matters. Increased political polarization and partisanship and steady deterioration in governance over the past 15 years and a failure to reduce federal deficits and the national debt also give Fitch pause.
The Senate passed the deal that suspended the debt limit a night before we learned the economy created almost 340,000 new jobs last month. Unemployment also ticked up, an indication that more people entered the workforce last month and that the Federal Reserve’s aggressive interest rate hikes may be working.
Boushey told Supercreator that the economy continues to surpass expectations because of the actions the president and Congress took in the early days of his administration’s pandemic response.
“He made the decision to boldly wrap his hands around the pandemic and put the economy on a stronger path, making sure that workers and businesses, and communities had the resources they needed to deal with the pandemic and to pull us out of economic challenges that we were experiencing because of the pandemic,” she said.
Boushey said these new jobs mean economic security for all the families who are able to enter and compete in the worker-friendly labor market, which has seen nominal wages increase faster than inflation since June of last year. (The May inflation numbers will be released next Tuesday.)
“This is certainly a really good and important report and coming on the heels of the vote around increasing the debt ceiling limit, this certainly does indicate that we can move past the challenges that we’ve seen over these negotiations over the past few weeks and months and that we’re not going to sort of enter the kind of economic challenges that would have happened had we not [made the agreement].”
Many critics of the deal though, including House and Senate progressives who voted against it because it imposed new work requirements for social programs, worry the spending caps and bureaucratic red tape could drive the economy backward.
Boushey said that because Congress is divided, the budget was always going to be a compromise whether the president negotiated now or closer to the September 30 deadline. But because Biden was able to forge an agreement that protected the core components of his economic agenda, the administration is confident that the bottom won’t fall out in the months to come.
“The Republicans control the House of Representatives. In our democracy, this is what governing looks like,” she said. “And so, the president came out with the best deal that he could for what he believes is best for the American people.”
For more: “Biden’s debt deal strategy: Win the fine print” by Jim Tankersly at NYT … “Veterans, stalemates and sleepless nights: Inside the White House strategy to strike the debt ceiling deal” by Jeremy Diamond and Phil Mattingly at CNN… “Mixed May jobs report doesn’t make Fed June rate decision any easier” by Liz Kiesche at Seeking Alpha
👋🏾 Hi, hey, hello! It’s Monday, June 5, 2023. You’re reading Supercreator Daily, your morning guide to the politicians, power brokers, and policies shaping the American creator experience.
CBC takes its democracy and race strategy on the road
Capitol Hill was the center of the political universe during the debt limit crisis, but attention will shift across the street to the Supreme Court in the weeks ahead as the nation awaits a series of opinions that could devastate what’s left of the Voting Rights Act overturn affirmative action, weaken LGBTQ+ rights, and repeal President Biden’s student loan debt relief plan.
The rulings will come a year after the court ruled to overturn Roe v. Wade, a decision that still left the country stunned even though a draft opinion leaked months earlier revealed what was to come.
The Congressional Black Caucus has spent much of the first half of this year working to avoid this fate if unfavorable opinions on voting rights and affirmative action fall and will head to Chicago this weekend to host its second event as part of its Democracy For the People summer tour to mobilize Black Americans to push back.
The CBC views these cases as not just potentially detrimental as individual decisions but also part of a sustained effort to dilute Black power, dehumanize Black people and destabilize American democracy.
Black Caucus chairman Steven Horsford told Supercreator late last month that previous generations of freedom fighters and civil rights activists laid the foundation for the work he’s leading this summer.
“We are standing on that history. And in this moment, there are direct attacks to dismantle the fundamental rights that we’ve gained since the Civil Rights Act, the Voting Rights Act, the Fair Housing Act of the ‘60s and the rolling back of those protections,” he said. “We’re concerned that the Supreme Court could do the same thing under Section 2 of the Voting Rights Act. And again, that's why we're working right now through this Democracy For the People effort around the strategy, the messaging, and the mobilization.”
Horsford added that beyond the 10 cities members will visit this summer, they will also do the work in Congress around legislative solutions once the decisions come down and members determine what provisions the bills need to include.
But in a Republican-controlled House and the Senate, which will require at least nine Republican votes to advance any legislation, the odds of any proposed bills becoming law during this congress are slim to none.
The tour kicked off two weekends ago in Charleston, South Carolina, and will focus on primarily southern states across the country, including Alabama, Mississippi, Florida, and Tennessee, among others. It will culminate in August during the 60th anniversary of the March on Washington.
Members will advance three strategic pillars during these stops, the first of which is voter education.
“We will convent town halls in member districts to provide information directly to the people, listen to constituent input, and develop an effective strategy around messaging and mobilization throughout the rest of this year and into next year,” Horsford said.
Second, the summer of action will focus on voter registration, targeted specifically to young voters, men of color, as well as citizens who’ve been previously incarcerated but who are eligible to register to vote.
Horsford said members will work with national and local partners to promote voter registration at town halls, organizing efforts to include canvassing, direct calls, and texts to target ZIP codes deploying mobile units to key neighborhoods and locations, and leverage print and earn media with information on how people can register.
Finally, the tour will train organizers in their communities to develop the next generation of local leaders to lead this work.
“This is critically important because we’ve seen the level of disinformation and misinformation that has occurred so these approaches will help us at every level tackle that and get accurate information out to our constituents,” Horsford said.
The summer of action follows a summit on democracy and race the CBC held in Washington, DC last month.
During the event, government leaders, scholars, activists, experts, thought leaders, and CBC members worked to develop messaging and organizing strategies to address the ongoing threats that could be worsened by the Supreme Court decisions.
In the coming weeks, the CBC will partner with city mayors, leaders of Divine Nine organizations, civil rights groups, HBCUs, community organizers, and everyday people to translate its work from the summit into impact during the summer of action.
For more: “What Will Be Left of the Voting Rights Act?” by Michael Waldman at The Brennan Center for Justice … “The destruction of the Voting Rights Act” by Linda Greenhouse at The Atlantic … “No matter how the Supreme Court decides on affirmative action, colleges must do a better job of helping all students feel welcome” by Jim Larimore … “As Supreme Court considers affirmative action, colleges see few other ways to diversity goals” by Collin Brinkley
It’s Stove Week in the House
The House Rules Committee will meet this afternoon to report a resolution to set the terms for debate and amendment on two bills that push back against a proposal by a federal agency to ban gas stoves, igniting the latest battle in the conservative movement’s culture wars.
House Republicans argue a gas stove ban would hurt struggling families and small independent restaurants because electric stoves are 10 to 30 percent more expensive on average.
The first — the Gas Stove Protection and Freedom Act — would block the Consumer Product Safety Commission from issuing a rule to ban gas stoves and prohibits the federal government from using taxpayer money to regulate gas stoves as a banned hazardous product.
Meanwhile, the Save Our Gas Stoves Act amends the Energy Policy and Conservation Act and clarifies that the Energy Department cannot issue standards that ban products based on the fuel they use.
“My bill that passed the [House Energy and Commerce Committee] lets families decide if a gas stove is right for them, not the federal government,” Republican Rep. Kelly Armstrong of North Dakota and the sponsor of the Gas Stove Protection and Freedom Act, said when his bill passed out of committee.
Republican Rep. Debbie Lesko of Arizona, who introduced the Save Our Gas Stoves Act, also said her legislation was about protecting consumer choice.
But some House Democrats see the votes this week as a distraction from other issues Congress should be focused on.
Democratic Rep. Jared Moscowitz of Florida submitted an amendment that would change the title of Armstrong’s bill to the “Stoves Over Gun Violence Act,” a knock towards House Republicans for their refusal to take up legislation to address the record pace of mass shootings the US has suffered through this year. (FWIW, Moskowitz also filed an amendment to rename the bill the “Make Appliances Great Again Act.”)
A spokesperson for Moskowitz did not respond to a request for additional comment.
The CPSC proposed first proposed a ban on gas stoves in January, with one of its commissioners — Richard Trumka Jr. — referring to them as a “hidden hazard.”
Trumka said at the time that all options were on the table to regulate the appliances, which have been shown to be harmful to humans and the environment, according to the Environmental Protection Agency.
Once conservatives accused the Biden administration of imposing on the sanctity of gas stoves to force its so-called Green New Deal agenda down the throats of everyday Americans, Trumka clarified that any new regulations would apply only to new appliances.
“The president does not support banning gas stoves,” White House Press Secretary Karine Jean-Pierre said when the issue made its way into the mainstream news cycle. “And the Consumer Product Safety Commission, which is independent, is not banning gas stoves. I want to be very clear on that.”
The Inflation Reduction Act includes an $840 tax credit to replace gas stoves with a new electric stove, cooktop, range, or oven.
For more: “NY ditches gas stoves, fossil fuels in new buildings in first statewide ban in US” by Anna Phillips at WaPo … “Democrats roast Republicans during hearing on gas stoves” by Nikki McCann Ramirez at Rolling Stone … “What Science Says About the Health Risks of Gas Stoves” by Columbia Mailman School of Public Health
TODAY IN POLITICS
All times Eastern
7:45 a.m. First Lady Dr. Jill Biden will visit Ibn Al Arif Middle School in Marrakech, Morocco to discuss education.
9 a.m. Dr. Biden will depart Marrakech for Lisbon, Portugal.
10 a.m. President Biden will receive his daily intelligence briefing. Second Gentleman Doug Emhoff will speak at the US Conference of Mayors annual meeting.
10:30 a.m. The first lady will arrive in Lisbon.
11 a.m. The second gentleman will participate in a roundtable with mayors to discuss antisemitism.
11:45 a.m. Dr. Biden will mark with the State Department’s Art in Embassies program and speak about the important role of the arts in the US’s cultural diplomacy efforts around the world.
12 p.m. The House is in with first votes expected at 6:30 p.m. at last votes expected at 7 p.m.
12:15 p.m. The first lady will depart Lisbon for Washington, DC.
1:30 p.m. Biden will hold a bilateral meeting with Prime Minister Mette Frederiksen of Denmark.
4:30 p.m. The president will welcome the Kansas City Chiefs to the White House to celebrate their 2023 National Football League championship.
Biden’s week ahead:
Tuesday: The president will hold a cabinet meeting. Vice President Harris will participate.
Thursday: President Biden will welcome Prime Minister Rishi Sunak of the United Kingdom to the White House. The two leaders will hold a bilateral meeting and participate in a joint press conference. Biden will also host a pride celebration with musician Betty Who.
Friday: The president and first lady will travel to Rocky Mount, North Carolina to promote workforce training programs and travel to Fort Liberty, North Carolina to meet with service members and their families before traveling to Camp David for the weekend.
Sunday: The president and first lady will return to the White House and host a reception for the Ford’s Theater Gala.
Vice President Harris is in Washington, DC with no public events scheduled.
Harris’s week ahead:
Tuesday: Harris will travel to Philadelphia to participate in a moderated conversation with the Service Employees International Union about worker empowerment. She will also speak at Israel’s Independence Day Reception to celebrate the 75th anniversary of the founding of the State of Israel.
Thursday: Harris will travel to the Bahamas and meet with Prime Minister Philip Davis. She will also participate in the US-Caribbean Leaders Meeting.
The Senate is out.
THEY DID THAT
Republican Rep. Marjorie Taylor Greene of Georgia heard from one of her constituents who compared her recent comments about New York Congressman Jamaal Bowman to the ones that got Emmett Till murdered.
Democratic Sen. Joe Manchin of West Virginia went home to celebrate the imminent completion of the Mountain Valley Pipeline, a provision he secured in the budget deal President Biden just signed.
Democratic Rep. Jamie Raskin of Maryland pushed back the date for him to announce if he’ll run for Senate to “before the Fourth of July.” The popular progressive originally said he’d decide by the end of May.
Democratic Rep. Robert Garcia of California asked y’all to iron your pride flags.
Related: Actor Tyler James Williams demonstrated what allyship looks like.
President Biden ate dinner at Cafe Milano in Georgetown with his granddaughter Naomi and her husband on Sunday night.
Vice President Harris expressed excitement towards the young people in attendance at a gun violence prevention event in Springfield, Virginia.
Secretary of State Antony Blinken said Russia went from the second-best army in the world to the second-best army in Ukraine.
Former First Lady Michelle Obama wished Dr. Biden a happy birthday.
A federal judge ruled Tennessee’s drag ban unconstitutional.
Fort Bragg changed its name to Fort Liberty in the Army’s latest move to erase Confederate names from bases.
Journalist Chuck Todd announced he’ll step down as moderator of NBC’s Meet the Press in September. White House Correspondent Kristen Welker will replace him.
YouTube announced it will stop removing misinformation on the 2020 election and other past US presidential elections during the 2024 campaign. (You read that right.)
Churchill Downs suspended all racing operations to further evaluate safety measures after a recent increase in horse deaths.
READ ALL ABOUT IT
“Enjoy your last days of not paying your student loans” by Kevin T. Dugan
“Don’t store cash in Venmo and PayPal, US regulator warns” by Chris Isidore
“Extremists are running America because no one runs against them” by David Pepper
“Nancy Mace is just another Republican” by Alex Shephard
“Kevin McCarthy is a survivor, not a strategic genius” by Ed Kilgore
“Inside the complicated reality of being America’s oldest president” by Peter Baker, Michael D. Shear, Katie Rogers, and Zolan Kanno-Youngs
“Why Tim Scott made his virginity key to his political persona” by Molly Olmstead
“Inside the meltdown at CNN” by Tim Alberta
“Millennials will not age into voting like Boomers” by Eric Levitz
“Former gun company executive explains roots of America’s gun violence epidemic” by Corey G. Johnson
”Justice served for Elizabeth Holmes, but what about Theranos’s board?” by Aron Solomon
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