MNI POLITICAL RISK ANALYSIS - US Daily Brief 16-03-23

Executive Summary:

• Treasury Secretary Janet Yellen will today provide testimony to the Senate Finance Committee. Expect the bulk of questioning to centre on the collapse of Silicon Valley Bank.
• Yellen will assure the committee that no taxpayer money is being put at risk but that will do little to dull Republican accusations that fees from regional banks are being used to prop up a reckless Californian bank.
• Progressive Senator Elizabeth Warren (D-MA) yesterday introduced a bill to put banks with at least USD$50 billion in assets back under rigid fed oversight and subject to Dodd-Frank Act stress tests but centrist Democrats remain sceptical over the need for Congressional action.
• US Defense Secretary Lloyd Austin held a rare call with his Russian counterpart Sergei Shoigu yesterday to diffuse tensions over the downing of a US drone.
• Chairman of the Joint Chiefs of Staff General Mark Milley declined to comment on whether the incident could be considered an 'act of war:' "I'm not going to go there."
• A spokesperson for the Ukrainian foreign ministry has invited Florida Governor Ron DeSantis (R-FL) to visit Ukraine following the likely presidential candidate’s isolationist comments.
• The EU has moved closer to ending a trade dispute with the US following months of intensive discussions over the Inflation Reduction Act.
• Former Mayor of Los Angeles, Eric Garcetti, has been confirmed as the US Ambassador to India, ending a period of 20 months without a US Ambassador in New Delhi.
• Poll of the Day: Measures in President Biden’s FY24 budget are broadly popular with US voters.

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