US: OMB's Vought Confident Congress Will Pass Rescissions, Shutdown Risk High
OMB Director Russ Vought told reporters at the White House a short time ago that he is "confident" that Congress will pass President Donald Trump's USD$9.4 billion rescissions package, which cuts funding to the State Department and public broadcasters.
- Vought called it a potentially "huge pivot point in how this town does business" and "will be an exciting milestone" in making permanent cost reductions, hinting at additional rescissions in the future.
- Trump yesterday threatened to withdraw support from any Republican senator who opposes the rescissions package, raising the stakes for ongoing FY26 negotiations: “It is very important that all Republicans adhere to my Recissions Bill... Any Republican that votes to allow this monstrosity to continue broadcasting will not have my support or Endorsement. Thank you for your attention to this matter!”
- The rescissions package has been increasingly tied to FY26 appropriations, with Senate Minority Leader Chuck Schumer (D-NY) suggesting that he would whip opposition to a short-term government funding bill, if the Senate GOP passes rescissions.
- Senate Majority Leader John Thune (R-SD) told reporters yesterday that the Senate will likely start voting Tuesday on rescissions. After an initial vote, the tentative plan is for up to ten hours of debate (which Republicans and Democrats may use evenly), followed by a mini vote-a-rama on amendments, per Politico.
- Data from Polymarket shows there is a 40% implied probability of a government shutdown in October, reflecting the increased risk of rescissions exacerbating a government funding standoff.
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FOREX: FX Exchange trade Roll pace update
FX Exchange traded Rolls dominates, at least over 75% of the front Month in EURUSD is spread related. Expects these to be all but done on Friday.
- EUR: 55%.
- GBP: 44%.
- JPY: 55%.
- CHF: 42%.
- CAD: 38%.
- AUD: 46%.
- NZD: 38%.
- SEK; 38%.
- NOK: 47%.
US: Bessent To Deliver Testimony To House Ways And Means Ctte Shortly
US Treasury Secretary Scott Bessent is shortly due to deliver testimony to the House Ways and Means Committee. LIVESTREAM At 16:00 ET 21:00 BST, Bessent will head to the Senate for a second round of testimony to the upper chamber's Appropriations panel.
- Bessent will receive a grilling from Democrats on Trump’s trade policy – particularly the details of the newly minted trade framework with China - as well as the deficit implications of the ‘One Big Beautiful Bill’. Rep. Suzan DelBene (D-WA) said she “wants answers on the administration’s plans for financial data,” per Semafor.
- Bessent yesterday downplayed reports that Trump could tap him as the next chair of the Federal Reserve: “I have the best job in Washington. The president will decide who’s best for the economy and the American people.”
FED: Trump Admin Reiterates Calls For Rate Cuts After CPI
Unsurprisingly, the Trump administration has taken to social media calling for Fed rate cuts since the CPI data crossed:
- President Trump posted the following on Truth Social: “PI JUST OUT. GREAT NUMBERS! FED SHOULD LOWER ONE FULL POINT. WOULD PAY MUCH LESS INTEREST ON DEBT COMING DUE. SO IMPORTANT!!!”
- Vice President Vance posted the following on X, quoting a post that provided the CPI figures: “The president has been saying this for a while, but it's even more clear: the refusal by the Fed to cut rates is monetary malpractice”
