On The Money – The Fed’s fastest-paced inflation tracker since 1982

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Happy Friday and welcome to On The Money, your nightly guide to everything related to your bills, bank account, and bottom line. Subscribe here: thehill.com/newsletter-signup.

Today’s Big Deal: Inflation keeps rising. We will also examine the Biden administration preparing the banks for possible Russian sanctions and antitrust legislation.

But first, find out the name of the White House new cat.

For The Hill, we are Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. contact us at [email protected] Where @SylvanLane, [email protected] Where @ArisFolley and [email protected] Where @KarlMEvers.

Let’s go.

Inflation indicator hits fastest pace in 39 years

The Federal Reserve’s favorite inflation gauge rose nearly 6% last year, marking the fastest rise in the closely watched index since 1982.

  • The personal consumption expenditure (PCE) price index rose 5.8% a year in December and 0.4% between November and last month, as high inflation continued to weigh on household budgets.
  • Personal consumption expenditure, a measure of consumer spending, also fell 0.6% after four straight months of increases.

The sharp rise in prices comes as the Fed plans a series of interest rate hikes, likely starting in March, to stifle a period of high inflation. Learn more here.

LEADING THE DAY

Biden calls for return of American manufacturing during visit to Pittsburgh

President BidenJoe BidenFormer Wisconsin GOP party chairman signals he will comply with Jan. 6 committee subpoena Romney tests positive for coronavirus Pelosi bypasses Progressives’ March 1 deadline to Build Back Better on Friday, advocated for American manufacturing as a way to rebuild the economy during a visit to Pittsburgh.

“Since day one, every action I’ve taken to rebuild the economy has been guided by one principle: Do it in America. Just like we did. No one knows that better than all the people here in Pittsburgh,” he told Carnegie Mellon University.

Biden traveled to Pittsburgh to remark on the administration’s focus on strengthening supply chains, revitalizing American manufacturing and creating well-paying union jobs, including through bipartisan infrastructure law.

  • He touted the infrastructure act, which he signed into law in November, and the federal investments it will make to fix roads and bridges and in other areas, such as climate initiatives.
  • Hours before leaving the White House for the Keystone State, a bridge collapsed in Pittsburgh and he added a stop to see the site. He met with local officials and emergency responders, saying the infrastructure bill would fix all of Pittsburgh’s vast number of bridges.
  • The infrastructure bill will invest at least $1.6 billion in Pennsylvania’s bridges, including $327 million in fiscal year 2022 for bridge repairs in the state, the president said.

He also promoted the economic growth seen during his first year in office, noting that 6.4 million jobs were created in one year.

And he mentioned Intel’s $20 billion investment to build chip factories, which was announced last week, and General Motors’ recent announcement that the auto giant will invest nearly $7 billion dollars in electric vehicle manufacturing sites in Michigan.

The Hill’s Alex Gangitano has more here.

BIDEN BRIEFS BANKS

Biden administration notifies banks of possible Russian sanctions

The Biden administration spoke with the country’s biggest banks this week about possible sanctions against Russia amid concerns about a potential Russian invasion of Ukraine.

The talks included Citigroup, Bank of America, JP Morgan Chase and Goldman Sachs, Bloomberg News first reported, citing people familiar with the matter. Senior administration officials and members of the National Security Council (NSC) reportedly spoke with executives of major corporations.

  • The NSC told The Hill that the administration is considering a range of options “to impose significant costs on the Russian economy” if Russia invades Ukraine.
  • Biden officials have suggested the sanctions will primarily hit Russian state-owned banks and restrict exports of critical supplies such as microelectronic components.

Although most major banks do not have a strong presence in Russia, Biden administration officials have briefed the banks on their plans to ensure the sanctions do not disrupt the global economy.

Alex has more on the briefing here.

THIS IS APP-ENING

App company CEOs urge senators to back antitrust bill

A coalition of tech executives is urging members of the Senate Judiciary Committee to support a bill to limit the market power of Apple and Google’s app stores.

The CEOs of 20 tech companies, including Spotify, Basecamp and Tile, wrote a letter to committee members asking them to support the bipartisan Open Markets Act. They said US tech giants “use a handful of noose to control developers and impose terms and conditions that undermine competition, stifle innovation, limit consumer choice and drive up prices.”

  • App developers have criticized Apple and Google for what they say are anti-competitive app store rules that favor the tech giants’ own services.
  • The proposal would partly attempt to address concerns by preventing app stores from requiring developers to use their payment system. It would also enshrine users’ rights to download apps from third-party stores.

The antitrust proposal, co-sponsored by Sens. Amy KlobucharAmy KlobucharOn The Money – Fastest Pacing Fed Inflation Tracker Since 1982 Hillicon Valley – Presented by Cisco – Apps Urge Senators to Push Antitrust Bill Forward App Company CEOs Urge senators to support MORE antitrust bill (D-Minn.), Richard Blumenthal (D-Conn.) and Marsha BlackburnMarsha BlackburnOn the Money – Fastest Pacing Fed Inflation Tracker Since 1982 Hillicon Valley – Presented by Cisco – Apps Urge Senators to Advance Antitrust Bill App Company CEOs Urge senators back antitrust bill MORE (R-Tenn.), is scheduled for a committee markup on Tuesday.

Rebecca Klar from The Hill has more here.

Good to know

The Federal Aviation Administration (FAA) announced on Friday that it worked out a solution with Verizon and AT&T to deploy 5G towers near airports without disrupting flights.

The FAA previously blocked the activation of some 500 towers, fearing they could damage aircraft instruments. The agency’s most recent statement says it is getting closer to resolving the 5G standoff that pits airlines and the FAA against wireless carriers and the Federal Communications Commission.

Here’s what else we’ve got our eyes on:

IN SERVICE NEXT WEEK

Tuesday

Wednesday

  • A House Financial Services Subcommittee hold a hearing titled “Ending Homelessness: Addressing Local Housing Challenges for the Most Vulnerable” at 10 a.m.
  • A House Energy and Commerce Sub-Committee hold a hearing titled “Pandemic Profiteers: Legislation to Stop Business Price Rising” at 10:30 a.m.
  • The Brookings Institute organize a webinar titled ““Fintech in Black Majority Communities: Closing Racial Gaps, Building Financial Health and Wealth.”

Thusday

  • The Senate Banking Committee is holding a confirmation hearing for Vice President of the Federal Reserve from supervisory nominee Sarah Bloom Raskin and gubernatorial nominees Lisa Cook and Phillip Jefferson at 10 a.m.
  • A House Financial Services Subcommittee hold a hearing titled “Creating Opportunity: Addressing Financial Barriers to Minority and Women-Owned Business Participation in Infrastructure Projects” at 10:00 a.m.
  • The Bipartisan Political Center organize a discussion on economic policy with the president of Federal Deposit Insurance Corp. Jelena McWilliams at 2 p.m.

That’s all for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you on Monday.

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