MNI POLITICAL RISK ANALYSIS - US Daily Brief 09-03-23

Executive Summary:

• President Biden will outline a series of tax hikes designed to cut the federal deficit by USD$3 trillion and call for increased defence spending when he unveils his Fiscal Year ’24 budget today at a campaign style event in Philadelphia, Pennsylvania.
• The House Ways and Means committee will today consider Republican legislation to prioritise federal debt repayments in the event of a default.
• Federal Reserve Chairman Jay Powell again called on Congress to raise the debt ceiling: “No one should assume that the Fed can protect the economy from the non-payment of the government’s bills, let alone a debt default.”
• China and the Inflation Reduction Act will be on the agenda when President Biden meets European Commission President Ursula von der Leyen at the White House tomorrow.
• The Netherlands has confirmed it will mirror the US and impose export controls on leading Dutch chip maker ASML.
• Northwestern University Professor Janice Eberly has emerged as a frontrunner to succeed Lael Brainard as vice chair of the Federal Reserve.
• House Speaker Kevin McCarthy (R-CA) has declined an invitation from Ukrainian President Volodymyr Zelensky to visit Kyiv for discussions on US aid.
• Senate Minority Leader Mitch McConnell (R-KY) has been hospitalised after a fall yesterday.
• UK Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese will travel to the US on Monday for an announcement on the first phase on a nuclear submarine deal.
• Poll of the Day: The Republican Party is seen by Americans as performing better on the economy and jobs.

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