DACA Deal, Rising Inflation
September 14, 2017
Schumer, Pelosi and President Trump strike deal on DACA, border patrol; Sanders, Progressives unveil single payer healthcare plan; US inflation rises, finally hitting monthly targets; Consumer comfort falls for a second week in a row.
- Schumer, Pelosi and President Trump strike deal on DACA, border patrol. The president met with key Democratic leaders Wednesday to discuss the Deferred Action for Child Arrivals executive order, which the president indicated he would not extend when it expired in six months. The President has explained he intends to let the order expire in order to force congress’ hand to legislate on the topic. It was revealed Wednesday that during his meeting with Pelosi and Schumer, the President agreed to amnesty for DACA recipients in exchange for beefed up border security, though not the wall on the Mexico-US border the President originally called for, which he agreed to pursue irrespective of DACA. The deal drew condemnation from conservatives, including Laura Ingraham and Breitbart, who accused the president of caving on a key issue of his campaign. The President defended his decision, indicating that any “deal” would require a vote in Congress, and that amnesty for child arrivals in good academic and professional standing has widespread approval. [Politico]
- Sanders, Progressives unveil single payer healthcare plan. Bernie Sanders, the Democratic primary candidate who rose to prominence on a platform of Democratic Socialism, unveiled a plan Wednesday to create a US single payer healthcare program. Details of the plan involved a tiered system, immediately making Medicare available to persons under the age of 18 and increasing the enrollment age each year for four years until all Americans were covered. The plan also included somewhat dramatic provisions for paying for it, one of the biggest criticisms with a large expansion of government healthcare, which included changes to the estate tax, employer taxes and income taxes. Sanders was accompanied by a number of top Democrats, including Senators Elizabeth Warren and Cory Booker. [The Hill]
Economic Indicators & News
- US inflation rises, finally hitting monthly targets. After 5 months of failing to hit Fed targets, US inflation picked up this past month. The Consumer Price Index increased 0.4% month over month, beating estimates and clocking in far ahead of last month’s 0.1% increase. Prices are up 1.9% year over year, close to monetary policymaker’s target rate of 2%. Core CPI, excluding food and energy, rose 0.2% from the previous month. Rising gas prices due to Hurricane Harvey are the reason for much of the discrepancy between the two metrics. While the higher figures may soothe worries about slowing inflation, economists expressed concerns that it may takes months to separate out the impact on prices of Hurricanes Harvey and Irma, from broader economic factors. [Bloomberg]
- Consumer comfort falls for a second week in a row. Two significant natural disasters, and rising gas prices due to Hurricane Harvey, have spurred a drop in Consumer comfort, especially in consumers’ perception of the buying climate. The index reported an 8-week low amongst low income households, those making from $15,000 and $24,9000. Part time workers, however, reported the highest consumer comfort in almost 11 years, spurred on by a tight labor market and the increasing availability of “gig” economy jobs. [Bloomberg]