This Week in Washington DC, Oct 2, 2014

This Week In Washington DC

Top 5 Stories

1.      President Obama acknowledged the US underestimated the threat posed by ISIS and overestimated the Iraqi military's capacity to counter the group, while emphasizing the international character of the conflict.

Look ahead: The White House maintains its position that "there will not be U.S. ground invasion of Iraq or Syria."

2.      Following an oversight hearing during which lawmakers questioned her capacity to lead the agency amid revelations of serious security lapses, Secret Service Director Julia Pierson resigned after only 18 months at the helm.

Look ahead: Joseph Clancy, a former chief of the agency's presidential-protection division, who later headed corporate security for Comcast, will serve as acting interim director.

3.      Thomas Duncan, a 42-year-old Liberian national, was diagnosed with Ebola after arriving in the United States, and is undergoing treatment at a Texas hospital.

Look ahead: The CDC has dispatched 10 experts to Dallas, where authorities are monitoring as many as 100 people who may have come into contact with Duncan, to oversee Duncan's treatment and the effort to prevent new infections.

4.      The government of Afghan President Ashraf Ghani, who was inaugurated this week pursuant to a power-sharing agreement with former rival Abdullah Abdullah, signed a bilateral security agreement with the US.

Look ahead: Under the pact, approximately 9,800 U.S. troops will remain in Afghanistan at the start of 2015.

5.      Economic data was mixed this week, with ADP reporting private-sector employers added 213,000 positions in September, and consumer spending increasing 0.5% in August, but consumer confidence dipping unexpectedly and home prices rising at their slowest pace in 20 months.

Look ahead: The Labor Department's employment situation report for September, due for release Friday, should provide more clarity, following August's disappointing showing of 142,000 jobs added to nonfarm payrolls.

This Week In Washington DC, Sep 25, 2014

This Week In Washington

Top 5 Stories

1.      The US, joined by Bahrain, Jordan, Qatar, Saudi Arabia, and the UAE, began aerial bombardment of ISIS positions in Syria. The airstrikes also targeted the Khorasan Group, described by Pentagon officials as comprised of "seasoned al-Qaida veterans."

Look ahead: The airstrikes are just one component of a multifaceted campaign that President Obama and other leaders predict will continue for some time.

2.      During an appearance at the U.N. Climate Summit, the president characterized climate change as an "urgent and growing threat" requiring the leadership of the world's largest nations. In a subsequent address to the U.N. General Assembly, Obama called on every nation to act on global warming.

Look ahead: The European Union unveiled new emissions targets, while the U.S. and China maintained existing targets and touted progress toward their goals.

3.      Corporations are scrambling to determine the effects of the Treasury Department's new rules on taxation of offshore income, which are designed to dis-incentivize corporate tax inversions.

Look ahead: The new regulations will not impede the merger between Burger King and Tim Horton's, but could impact a host of pending inversions.

4.      In the three West African countries hardest hit by the Ebola outbreak—Liberia, Guinea, and Sierra Leone—a total of more than 2,800 people have died and 5,843 have been infected, up from 1,346 deaths and 2,458 infections one month ago, according to a report from the World Health Organization.

Look ahead: The CDC reports Liberia and Sierra Leone could see 21,000 Ebola cases by Sept. 30 and 1.4 million cases by Jan. 20 if the outbreak is not controlled.

5.      In a result that reassured British investors, Scottish voters on Sept. 18 rejected a bid to sever their bonds with the United Kingdom.

Look ahead: U.K. Prime Minister David Cameron hailed the "clear result" of the referendum and pledged certain powers to Scotland, in keeping with an earlier agreement with Deputy Prime Minister Nick Clegg, and Labour leader Ed Miliband.

This Week In Washington DC, Sep 18, 2014

This Week In Washington DC

Top 5 Stories

1.      The House approved President Obama's plan to equip and train members of the Syrian opposition as part of the administration's strategy against ISIS. The president emphasized the US will not deploy ground troops in Iraq, despite Joint Chiefs of Staff Chairman Gen. Martin Dempsey's refusal to rule out the possibility.

Look ahead: Even absent a U.S. infantry presence, experts say small special forces teams could operate alongside Iraqi troops, providing guidance and calling in air support.

2.      The House approved a continuing resolution to fund the government through Dec. 11 and reauthorize the Export-Import Bank through June 2015.

Look ahead: The Senate is scheduled to begin consideration of the stopgap funding measure this afternoon; a vote on passage could occur several hours later.

3.      The Federal Reserve announced plans to conclude the central bank's monthly asset purchases in October, but left unchanged its forward guidance that the federal funds rate should remain near zero for "a considerable time" after the end of quantitative easing.

Look ahead: Fed officials increased slightly their projections for the benchmark rate at the end of 2015, suggesting a swifter rate rise than had previously been forecast.

4.      The Census Bureau reported the national poverty rate dipped from 15% in 2012 to 14.5% last year—the first decline since 2006—as more Americans obtained full-time employment, and the child-poverty rate decreased from 21.8% to 19.9%.

Look ahead: The decline is attributable to population growth, as the number of Americans living at or below the federal poverty line was unchanged and household incomes remained flat.

5.      Scottish voters head to the polls today in a referendum on independence from the United Kingdom, weighing national identity against economic certainty. Nationalists argue Britain has deprived Scotland of its share of oil and gas revenues, but are accused of relying on an unduly optimistic assessment of the industry.

Look ahead: A vote for independence could create risks, but also opportunities, in Edinburgh, Royal Bank of Scotland and Lloyd's Bank have threatened to shift their legal bases to London.

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This Week In Washington DC, Aug 21, 2014

This Week In Washington

Top 5 Stories

1.      Militants from the Islamic State of Iraq and Syria released a video of apparent beheading of American journalist James Foley—an act the group framed as a response to U.S. airstrikes against ISIS fighters in Iraq, after seeking a multimillion ransom from the U.S. govt.

Look ahead: The military, which mounted a failed rescue mission for Foley and other American hostages earlier this summer, conducted new airstrikes following the release of the gruesome video; it is unclear whether the administration will change tactics in the fight against ISIS.

2.      Protests continued this week in Ferguson, Mo., as police released the name of the officer who fatally shot Michael Brown, as well as an incident report detailing the teenager's alleged involvement in a robbery, but the violent clashes with law enforcement appeared to decline as Attorney General Eric Holder arrived for meetings.

Look ahead: A St. Louis County grand jury has begun hearing evidence in the case, as investigators sift through conflicting accounts of the events of August 9.

3.      Long-term peace negotiations between Israel and the Palestinians collapsed Tuesday, with Hamas restarting its rocket barrages and Israel its aerial bombardment of Gaza.

Look ahead: Qatar, which provides financial backing for Hamas and refuge for its exiled leader, has been accused of helping to derail the talks; Israeli Prime Minister Benjamin Netanyahu plans to continue the military campaign "with all means and as is needed."

4.      Republican establishment candidates prevailed in this week's primaries, as former Alaska Attorney General Dan Sullivan defeated Lt. Gov. Mead Treadwell and 2010 nominee Joe Miller in the Senate race, and Wyoming Gov. Matt Mead held off a challenge from physician Taylor Haynes and state Superintendent of Public Instruction Cindy Hill.

Look ahead: Sullivan will face Democratic Sen. Mark Begich, whose strategy relies heavily on his Alaskan roots and independence from the national party; Mead squares off against pilot Pete Gosar, who previously served as state Democratic Party chairman and ran unsuccessfully for the gubernatorial nomination in 2010.

5.      Dr. Kent Brantly and aid worker Nancy Writebol, who contracted Ebola while treating patients in Liberia, have recovered from the virus, and have been discharged from Emory University Hospital, even as authorities attempt to prevent an outbreak in a Monrovia slum following a weekend raid on a quarantine facility.

Look ahead: While scientists' immediate priority is to control the spread of the virus, their long-term objectives depend on identifying the origin of Ebola.

This Week In Washington DC, July 24, 2014

This Week In Washington

Top 5 Stories

1.      House GOP leadership aims to tackle 4 key issues ahead of the August recess: a short-term spending bill to keep government funded and operating at current levels beyond Oct. 1; Republicans' funding and policy response to the president's supplemental request; reforms to the embattled Veterans Affairs Department; and formal authorization of Speaker John Boehner's lawsuit over Obama's use of executive actions.

Look ahead: President Obama dispatched a team of Defense and Homeland Security department officials to determine the efficacy of a National Guard deployment to the border, and on Friday will host Central American presidents Friday to discuss joint efforts to stem the tide of undocumented arrivals.

2.      The conflict in Ukraine intensified this week, as 2 Ukrainian fighter jets were shot down near the Russian border, allegedly with missiles fired from inside Russia, just days after a Malaysia Airlines plane was struck, apparently by a Russian-made surface-to-air missile, killing all 298 on board.

Look ahead: The bodies of dozens of MH17 victims arrived in the Netherlands, where investigators will work to identify the victims and return them to relatives.

3.      Israel escalated its military operation in Gaza, launching a ground offensive and continuing aerial bombardment, as the death toll topped 600 Palestinians and 30 Israelis. Diplomats from the United States, Israel, and several Middle Eastern states proposed an immediate cease-fire in exchange for economic assistance, but Hamas leader Khaled Meshaal demands an end to the Israeli blockade of Gaza as a prerequisite.

Look ahead: The U.N. Security Council, which held an emergency meeting on the conflict Sunday, voiced "serious concern" over the number of civilian casualties and called for an immediate end to hostilities.

4.      A 3-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled the federal government may not subsidize the insurance premiums of individuals receiving coverage through the federal exchange, while a panel of the Richmond-based U.S. Court of Appeals for the Fourth Circuit held the Internal Revenue Service rule establishing the subsidies is "a permissible exercise of the agency's discretion."

Look ahead: The administration could seek a review.  Additional cases are pending in other courts, and the Supreme Court could take up one or more of the cases. Finally, Congress could clarify the relevant language in the ACA, or more states could set up their own exchanges.

5.      Former Dollar General CEO David Perdue edged 11-term Rep. Jack Kingston in the GOP runoff for Georgia's open Senate seat, garnering 51% of the vote and setting up a general-election battle against Democrat Michelle Nunn.

Look ahead: A victory for Nunn could help Democrats lock up control of the Senate, but Republicans haven't lost a major race in the state in over a decade.

This Week In Washington DC, July 17, 2014

This Week In Washington

Top 5 Stories This Week

1.      Amid increasing Democratic opposition to expedited deportations of Central American minors, President Obama met with members of the Congressional Hispanic Caucus, while White House officials briefed senators on the administration's response to the surge.

Look ahead: The White House cited Monday's expedited deportation of 38 Honduran women and children as evidence that those who cross the U.S. border illegally "will not be welcomed to this country."

2.      The United States imposed new, targeted sanctions against major Russian banks and energy and defense companies, but the administration stopped short of employing sector-based sanctions. The European Union agreed to halt European Investment Bank lending for public-sector projects in Russia, and to push for an end to new loans by the European Bank for Reconstruction and Development.

Look ahead: Russian President Vladimir Putin warned that the sanctions, which for the first time target key players in the Russian economy, will backfire on the Obama administration by harming bilateral relations and the interests of U.S. companies.

3.      Israel has invaded (land, sea and air)Gaza searching for underground tunnels after a comprehensive cease-fire—intended to allow delivery of supplies to Gaza— was apparently broken by mortar fire from militants.

Look ahead: Hostilities continue, though negotiations for a lasting truce continue in Egypt.

4.      The House approved on a 367-55 vote a $10.9 billion Highway Trust Fund bill authored by Ways and Means Committee Chairman Dave Camp, R-Mich., which would be funded through $6.4 billion in gains from pension-smoothing, $3.5 billion from customs fees, and $1 billion from a special fund dedicated to addressing leaking underground storage tanks.

Look ahead: Senate Majority Leader Harry Reid is eyeing consideration of three highway fund proposals: the House-passed bill, a competing measure from the Senate Finance Committee, and a shorter-term offering from Sen. Barbara Boxer, D-Calif.

5.      Federal Reserve Chair Janet Yellen delivered the semiannual Monetary Policy Report to Congress this week, resisting House Republicans' calls for disclosure of her weekly conversations with Treasury Secretary Jacob Lew and rejecting as "a grave mistake" a proposed formula to guide monetary policy.

Look ahead: Yellen advised the Senate Banking Committee that while the labor market is improving, "a high degree of monetary policy accommodation remains appropriate" until it becomes clear that the economy is on a solid footing.

This Week in Washington, June 19, 2014

This Week In Washington

Top 5 Stories This Week

1.      President Obama outlined the U.S. response to the Islamist insurgency in Iraq, which includes sending up to 300 military advisers to aid Iraqi forces, but noted that "American forces will not be returning to combat in Iraq.

Look ahead: Consensus is growing among U.S. and Arab leaders that Iraqi President Nouri al-Maliki is a barrier to national unity and lasting peace, and American officials are quietly urging Iraqis to form a new government without Maliki, whose tenure has been marred by sectarian divisions.

2.      Ahmed Abu Khatalla, the suspected mastermind of the 2012 attacks in Benghazi, was apprehended in a nighttime raid oand is currently en route to the United States via a Navy transport vessel. The administration asserted its right to self-defense in response to Libyan claims the raid violated its sovereignty.

Look ahead: Khatalla will not be sent to Guantanamo Bay, as some Republican lawmakers have urged; the Obama administration intends to try him in federal court.

3.      Disillusionment runs deep in the House Republican Conference, which convenes this afternoon to select a new majority leader and whip, but the special election is unlikely to calm anyone.

Look ahead: The new leaders will look to cement their positions ahead of the August recess, while today's contest could offer clues to the strength of the tea party and shed light on the coming race to succeed Speaker John Boehner.

4.      The president unveiled plans to create the world's largest marine sanctuary, setting aside a swath of the south-central Pacific Ocean in an effort to protect the region's coral reefs and marine species from fishing, energy development and other activities.

Look ahead: This prompted swift criticism from House conservatives who accuse the admin of closing off coastal areas from fishing activity without regard to potential economic cost.

5.      Following talks with Russian President Putin and German Chancellor Merkel, Ukrainian President Poroshenko proposed a temporary, unilateral cease-fire by government troops—a move greeted with skepticism from pro-Russian separatists.

Look ahead: Government forces engaged in fresh clashes with rebels today, even as Poroshenko prepares to meet with regional leaders to rally support for his plan.