Senate Democrats Hit Pause on Biden’s Build Back Better Bill

Senate Democrats are putting President Biden’s climate and social spending plan on the back burner as they plan to debate voting rights legislation this month and hold a vote on changing the Senate’s filibuster rule.

Democratic aides say the Build Back Better bill won’t be ready for floor action any time soon and predict the wide-ranging legislation that the White House has negotiated with centrist Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) may have to be completely overhauled.

Democratic aides warn that means Build Back Better probably won’t be ready to come to the floor until March or later. And whatever version of the bill comes up for a vote will be markedly different from the $1.75 trillion framework that Manchin resoundingly rejected during a “Fox News Sunday” interview on December 19, aides say.

European Union Drafts Plan to Label Natural Gas and Nuclear Investments as Green

The European Union has drawn up plans to label some natural gas and nuclear energy projects as “green” investments after a year-long battle between governments over which investments are truly climate-friendly.

A draft of the Commission’s proposal, seen by Reuters, would label nuclear power plant investments as green if the project has a plan, funds and a site to safely dispose of radioactive waste. To be deemed green, new nuclear plants must receive construction permits before 2045.

Investments in natural gas power plants would also be deemed green if they produce emissions below 270g of CO2 equivalent per kilowatt hour (kWh), replace a more polluting fossil fuel plant, receive a construction permit by December 31, 2030 and plan to switch to low-carbon gases by the end of 2035.

Gas and nuclear power generation would be labelled green on the grounds that they are “transitional” activities – defined as those that are not fully sustainable, but which have emissions below industry average and do not lock in polluting assets.

“Taking account of scientific advice and current technological progress as well as varying transition challenges across member states, the Commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future,” the European Commission said in a statement.

To help states with varying energy backgrounds to transition, “under certain conditions, solutions can make sense that do not look exactly ‘green’ at first glance,” a Commission source told Reuters, adding that gas and nuclear investments would face “strict conditions”.

EU countries and a panel of experts will scrutinze the draft proposal, which could change before it is due to be published later in January. Once published, it could be vetoed by a majority of EU countries or the European Parliament.

U.S. Trade Deficit in Goods Jumps 17.5% as Imports Surge

The trade deficit in goods surged by 17.5% in November to set an all-time high, largely reflecting faster improvement in the U.S. economy compared to most other countries.

An early or advanced look at the trade gap in goods showed that it increased to $97.8 billion in November from $83.2 billion in October, the U.S. Census Bureau said. The U.S. is on track in 2021 to post its biggest annual shortfall on record.

An advanced estimate of wholesale inventories, meanwhile, revealed a 1.2% increase in November. And retail inventories jumped 2%, according to an early estimate.

U.S. imports of goods rose 4.7% to $252.4 billion in November. Imports of industrial supplies, autos, consumer goods and food all rose sharply. Americans have snapped up huge quantities of imports since the U.S. economy fully reopened earlier this year. Federal stimulus money, rising wages and a fast-recovering economy have given consumers the financial means and confidence to spend.

The trade deficit is likely to subside eventually as other economies rebound, but U.S. trade deficits have been high for years and are likely to remain that way. A higher deficit subtracts from gross domestic product, the official scorecard for the U.S. economy.

U.S. Home Prices Surged 18.4% in October

U.S. home prices surged again in October as the housing market continues to boom in the wake of last year’s coronavirus recession.

The S&P CoreLogic Case-Shiller 20-city home price index, out Tuesday, climbed 18.4% in October from a year earlier. The gain marked a slight deceleration from a 19.1% year-over-year increase in September but was about in line with what economists had been expecting.

All 20 cities posted double-digit annual gains. The hottest markets were Phoenix (up 32.3%), Tampa (28.1%) and Miami (25.7%). Minneapolis and Chicago posted the smallest increases, 11.5% each.

Last week, mortgage rates fell — to 3.05% for the benchmark 30-year, fixed-rate and 2.66% for the 15-year fixed-rate home loan. The persistently low rates signal that credit markets appear more concerned about the omicron variant depressing economic growth than about the highest inflation rates in nearly 40 years.

The National Association of Realtors reported last week that sales of previously occupied homes rose for the third straight month in November to a seasonally adjusted annual rate of 6.46 million.

CDC Cuts Recommended Isolation and Quarantine Periods for COVID-19 Infections

People who test positive for the coronavirus need to isolate themselves for only five days if they don’t show symptoms, the Centers for Disease Control and Prevention said Monday. This cuts in half the earlier recommendation of 10 days of isolation.

Data shows that the majority of coronavirus transmission “occurs early in the course of illness,” the CDC explained — generally in the one or two days before symptoms begin and two or three days after.

“Therefore, people who test positive should isolate for 5 days and, if asymptomatic at that time, they may leave isolation if they can continue to mask for 5 days to minimize the risk of infecting others,” the CDC said in a statement.

The CDC has also updated its recommended quarantine period for people exposed to the virus. It says unvaccinated people should quarantine for five days, followed by five days of “strict mask use.” Exposed people who are more than six months past their second dose of the Pfizer-BioNTech or Moderna vaccines, or two months out from a Johnson & Johnson vaccine, should also quarantine for five days.

People who have gotten their booster shot don’t need to quarantine after exposure but should wear a mask for the next 10 days.

Holiday Sales Rise 8.5 Percent

Sales over this year’s holiday season grew at the fastest pace in 17 years and increased by 8.5 percent since last year. Additionally, holidays sales were up 10.7 percent from the 2019 holiday season, Mastercard Spending Pulse found.

The spending measure, which tracked consumer spending from Nov. 1 to Dec. 24, found that clothing and jewelry saw the largest increases. Clothing sales spiked 47 percent, followed by jewelry, which saw 32 percent growth from the year prior.

Since the COVID-19 pandemic began, online sales during the holiday season have increased 61 percent.

The record-setting sales are notable as several factors, including product shortages and the COVID-19 omicron variant, threatened retail success.

Supreme Court to Hear Challenges to Vaccine Mandates in Early January

The Supreme Court will hear legal challenges to the Biden administration’s employer vaccine mandates next month, the justices announced Wednesday night, setting a rapid schedule for the cases.

In a pair of orders issued Wednesday, the court said it would hear oral arguments on January 7 over President Biden‘s vaccine-or-test mandate for large employers and a regulation from the Centers for Medicare and Medicaid Services (CMS) requiring vaccines for health care workers.

In scheduling the accelerated timeline for the cases, the Supreme Court deferred ruling on whether to block the new rules until after hearing the challenges.

The Occupational Safety and Health Administration issued a rule last month requiring companies with more than 100 employees to mandate that their workers either receive a COVID-19 vaccine or undergo regular testing and take other measures to combat the spread of the virus.

The CMS rule requires virtually every health care worker in the country to be vaccinated.

Each of the new regulations has prompted an array of challenges, which will be consolidated during oral arguments next month.

 

COVID Relief Fraud Nears $100 Billion, Secret Service Says

The release of COVID-19 federal relief funds has unleashed a wave of individuals and criminal networks responsible for what the Secret Service says is nearly $100 billion in stolen benefits.

The Secret Service has tapped Assistant Special Agent in Charge (ASAIC) Roy Dotson to lead the pandemic fraud recovery effort. In this role, Dotson is coordinating with financial institutions and money services businesses, U.S. attorney offices, and other federal agencies.

According to Dotson, who is based in the Jacksonville field office, the Secret Service has more than 900 active criminal investigations into pandemic-related relief fraud.

The Secret Service has established a Cyber Fraud Task Force (CFTF), partnering with federal and state, local, tribal, and territorial partners, as well as foreign law enforcement, academic, and private sector partners.

Part of these efforts will also include spearheading cryptocurrency investigations centering on unsuspecting money mules who have moved stolen funds from one account to another – a trend that also picked up during the pandemic, according to Dotson.

As of December 2021, the Secret Service says it has recovered more than $1.2 billion and returned more than $2.3 billion of fraudulently obtained funds through automated clearing house reversals. Amid these investigations, approximately 100 people have been arrested on loan fraud charges.

DHS Issues Public Health Advisory about the Omicron Variant

Yesterday, the Wisconsin Department of Health Services issued a public health advisory calling on all Wisconsinites to take urgent action to prevent additional hospitalizations and deaths due to COVID-19. The highly contagious Omicron variant of COVID-19 has been detected in Wisconsin and is anticipated to cause a rapid increase in disease activity in the coming weeks.

“I urge every Wisconsinite to take immediate action and get the COVID-19 vaccine and your booster dose if you haven’t received it already—this is critically important for mitigating surges in hospitalizations and deaths across our state,” said Governor Tony Evers. “Please get the vaccine, continue following public health best practices, and do your part to help slow the spread of the Omicron variant.”

To slow the spread of the Omicron variant, DHS is urging all Wisconsinites to take the following actions immediately:

  • Get vaccinated against COVID-19, including a booster dose as soon as you are eligible.
  • Wear a well-fitting mask in indoor spaces when others are present who do not live with you.
  • Celebrate safely over the holidays by keeping gatherings small, getting tested before visiting others, and staying home if you have any symptoms.

 

OSHA COVID-19 Vaccine-or-Test Mandate Revived, Supreme Court Showdown Looms

A U.S. appeals court on Friday reinstated a nationwide vaccine-or-testing COVID-19 mandate for large businesses, which covers 80 million American workers, prompting opponents to rush to the Supreme Court to ask it to intervene.

The ruling by the 6th U.S. Circuit Court of Appeals in Cincinnati lifted a November injunction that had blocked the rule from the Occupational Safety and Health Administration (OSHA), which applies to businesses with at least 100 workers.

Within hours of the ruling, at least three petitions were filed with the U.S. Supreme Court, asking it to immediately block the mandate.

A group of business groups representing retail, wholesale, warehousing, transportation, travel and logistics filed one of the first petitions with the high court, raising among other issues the potential for workers to quit rather than take the shot.

“The resulting labor upheaval will devastate already fragile supply chains and labor markets at the peak holiday season,” said the petition.