OVERNIGHT MONEY: Bernanke, Fannie and Freddie, oh my!

Wednesday’s Big Story:

You want hearings? We’ve got hearings, with the Federal Reserve, Fannie Mae and Freddie Mac all expected to be topics of discussion in the House on Wednesday.

For starters, Ben Bernanke, the chairman of the Fed, is slated to appear before the House Budget Committee tomorrow to discuss the economy — and he may not get an exceedingly warm welcome. 

The panel’s chairman, Rep. Paul Ryan (R-Wis.), has been critical of the Fed's recent policies, notably its second crack at "quantitative easing" — i.e. QE2. In fact, Ryan has backed legislation that would halve the Fed's mandate, having it focus exclusively on price stability instead of juggling both that and ways to maximize employment. But that’s not all: Bernanke also dipped a toe in the debt limit debate last week, telling lawmakers to not use that limit as a "bargaining chip." He may get an earful on that from the Tea Party freshman who now populate the panel.

On a related note, Rep. Ron Paul (R-Texas), the longtime Fed basher, will get his first swing of the chairman's gavel tomorrow at the House Financial Services subcommittee that monitors the central bank. With Bernanke tied up at the House Budget Committee, Paul instead will chat with a handful of economists about the impact the Fed's policies have on job creation and the U.S. economy. Given that Paul is the author of the book, "End the Fed," we can probably guess where he'll come down on the matter.

And moving over to Fannie and Freddie, another Financial Services subcommittee — on capital markets and government-sponsored enterprise — is set to hear from several economists on how to deal with the housing finance system. 

What Else to Watch For:

Early Start: Treasury Secretary Timothy Geithner and Sen. Orrin Hatch (R-Utah), the ranking member of the Finance Committee, are among the expected featured guests at a morning town hall on the economy and job creation hosted by The Atlantic. As it stands, Geithner’s interview is scheduled for a touch after 8:30. 

Jon Huntsman, the for-now U.S. ambassador to China, and Julius Genachowski, the chairman of the Federal Communications Commission, are also scheduled to appear.

Don’t Forget About Trade: Ron Kirk, the U.S. trade representative, is set to testify before the House Ways and Means Committee on the Obama administration's trade policy agenda. The White House has urged Congress to complete the South Korean free trade agreement first, with two other pending trade agreements, with Colombia and Panama, still needing details resolved. 

If That Weren’t Enough: A House Oversight Committee subcommittee will also explore whether there is a pending crisis with state and municipal debt. As states struggle with looming budget gaps, Republicans have already said they're not interested in another bailout, so keep an eye on this meeting to see if there's more stern talk for states and localities from the GOP.

Elsewhere, separate House Appropriations subcommittees will host agency inspectors general, including Russell George, the Treasury inspector general for tax administration. And the House Small Business Committee will hold a hearing on the 1099 provision included in the healthcare law. The Senate voted last week to repeal the language that requires businesses to file 1099 forms with the IRS for every vendor from whom they purchase at least $600 worth of products. 

And Then There’s: Following the White House’s announcement that it will funnel $53 billion over six years for high-speed rail, a host of lawmakers, past and present, are expected to attend a conference hosted by the U.S. High Speed Rail Association. (Among them: Rep. John Mica (R-Fla.), the current chairman of the House Transportation panel, and former Rep. Jim Oberstar (D-Minn.), a previous chair.) Meanwhile, the Transportation secretary, Ray LaHood, is set to speak at conference on green jobs. 

Economic Indicators:

-- The Mortgage Bankers Association is set to drop its weekly applications survey.

-- And the U.S. Energy Information Administration is expected to release its “Week in Petroleum.”

Breaking Tuesday:

Work to Do: Sen. Kent Conrad’s goal for his caucus’ retreat this week? Our Erik Wasson writes that it’s to convince his colleagues to get behind a measure modeled after the recommendations of President Obama’s debt commission. The North Dakota Democrat (and Budget Committee chairman) met with other members of the commission — Sen. Dick Durbin (D-Ill.), the majority whip, as well as Sens. Tom Coburn (R-Okla.) and Mike Crapo (R-Idaho) — in Durbin’s office on Monday. According to sources, that group is coordinating its efforts with Sens. Saxby Chambliss (R-Ga.) and Mark Warner (D-Va.), who are also looking to base legislation after the debt panel.

On a Roll: Four hedge fund employees were charged with insider trading on Tuesday, in what The New York Times reports is the latest development in a deep federal investigation on Wall Street. As of now, 46 have been charged, with 29 pleading guilty.

Break out the Checkbook: The Wall Street Journal reports that home affordability is now generally back at levels it was before the housing bubble, according to Moody’s Analytics data. “If you can get a loan, these are pretty good times to buy,” said Mark Zandi, Moody’s chief economist. 

What You Might Have Missed:

On the Money's Tuesday

-- Paul Ryan on the Fed: They print money “out of thin air.”

-- The president’s budget is expected to defer collecting certain interest payments from states.

-- A watered-down line item veto measure could be paired with a debt commission one. 

-- The oil-and-gas industry pushes back on Democrats.

-- Sen. David Vitter (R-La.) wants Social Security out of the debt ceiling conversation. 

-- The IRS is trying to lure offshore tax evaders. 

-- Geithner heads to Ways and Means in a week. 

-- Labor Department: Nearly five job seekers for every opening in December. 

-- While the budget deficit hit $53 billion in January.

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