OVERNIGHT MONEY: GDP look-see

Hoyer suggested that he expects the coming fiscal battles, healthcare issues and the immigration debate to all be part of the meetings, as lawmakers prepare for more than a month away from the Capitol.

House floor: The House is expected to start consideration of a slew of IRS-related measures on Wednesday, as GOP lawmakers try to ensure that the agency's targeting of groups seeking tax-exempt status remains fresh in the voters' minds. Among the bills on the docket for Wednesday and Thursday: a measure to let the government place workers under investigation on unpaid leave, another to give the IRS more latitude to fire workers accused of political bias and legislation to allow taxpayers to tape conversations with enforcement officials.

Fed intrigue: And no, not of the Larry Summers-Janet Yellen variety.

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Instead, the Federal Reserve will wrap up another two-day policy meeting tomorrow, then offer up a piping fresh statement for financial markets and lawmakers to digest. The Fed has stuck to its existing policy of monthly bond purchases and near-zero interest rates for some time now. But after the June meeting, the central bank injected intrigue into the policy updates by suggesting it was beginning to mull when it should begin slowing, and ultimately turning off, that faucet of economic stimulus. 

The Fed chairman, Ben Bernanke, has emphasized that the central bank will continue to react to economic changes in any slowdown, and that the Fed's plan to halt the bond purchases by the middle of next year will be contingent on the economy proceeding as expected. But plenty of traders will be taking a close look at the latest statement for any indications that the Fed is wavering on that stance, or even thinking of getting more aggressive.

Tomorrow's statement from the Federal Open Market Committee will be even more vital than usual, because Bernanke is not scheduled to hold a press conference to further flesh out the central bank's thinking afterward.

Senate's turn: The Senate Banking Committee will take its first big step on housing finance reform tomorrow, when the panel meets to consider legislation reforming the Federal Housing Administration. While their House counterparts have steamed ahead with a comprehensive overhaul bill that has already cleared committee, senators are taking a more deliberative, piecemeal approach. Both Chairman Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.) and the panel's ranking member, Sen. Mike CrapoMike CrapoOvernight Regulation: Senate Banking panel huddles with regulators on bank relief | FCC proposes 2M fine on robocaller | Yellowstone grizzly loses endangered protection Overnight Finance: Big US banks pass Fed stress tests | Senate bill repeals most ObamaCare taxes | Senate expected to pass Russian sanctions bill for second time All big US banks pass Dodd-Frank stress tests MORE (R-Idaho), have given the FHA bill their blessing, so don't expect too many fireworks at tomorrow's markup. But when the bill advances as expected, that sets the stage for the committee to begin looking at broader reform measures down the way.

Approps season, cont'd: The full House Appropriations Committee on Wednesday will mark up – and likely approve – its plan to slash the Environmental Protection Agency’s budget by 34 percent in 2014.

The proposed $2.8 billion cut is twice as deep as the 17 percent reduction proposed last year by the House GOP, and reflects a decision to cut domestic programs below sequestration levels in the coming year while adding money for the military.

In the process, House Republicans will use the $24.3 billion Interior and Environment spending bill to block the heart of President Obama's push for climate change action – executive regulations on existing power plants.


LOOSE CHANGE:

Tax reform tiff: President Obama's "grand bargain for the middle class" – the swapping of corporate tax reform for increased infrastructure and job spending – has created something of a debate on who supported what sort of tax reform and when. 

Republicans stressed throughout the day that they had long preferred to rewrite the corporate and individual tax systems simultaneously, because so many small businesses pay as individuals. But Democrats circulated quotes from a slew of top Republicans – from Speaker John BoehnerJohn BoehnerRyan reminds lawmakers to be on time for votes Juan Williams: GOP fumbles on healthcare The Hill's 12:30 Report MORE (Ohio) to Senate Minority Leader Mitch McConnellMitch McConnellSenate Dems plan floor protest ahead of ObamaCare repeal vote Senate Dems set principles for potential budget negotiation Dem senator: Don't bet against McConnell on ObamaCare repeal MORE (Ky.) to House Budget Committee Chairman Paul RyanPaul RyanSpeaker Ryan, the fate of our policy toward Russia rests in your hands Funeral for the filibuster: GOP will likely lay Senate tool to rest This week: Senate races toward ObamaCare repeal vote MORE (Wis.) – that suggested they could get behind corporate reform.

On the other side of the aisle, Sen. Orrin HatchOrrin HatchIndustry 'surprised' by DOJ appeal in data warrant case US, South Korea can bury the trade barrier hatchet this week Time to get Trump’s new antitrust cop on the beat MORE (Utah), the top Republican on the tax-writing Finance Committee, sent around statements from President Obama's budget, Sen. Charles SchumerCharles SchumerSenate Dems plan floor protest ahead of ObamaCare repeal vote Dem senator: Don't bet against McConnell on ObamaCare repeal It's time for Republicans to play offense while Democrats are weak MORE (D-N.Y.) and former Treasury Secretary Timothy Geithner backing revenue-neutral corporate reform.

OK, about Summers and Yellen: Senate Majority Whip Dick DurbinDick DurbinSenate Dems set principles for potential budget negotiation Dem senator: GOP's healthcare approach will 'devastate Medicaid' Sunday shows preview: Senate healthcare debate heats up MORE (D-Ill.) says he would have a "lot of questions" for Summers if Obama decides to choose the former Treasury secretary to replace Bernanke, Bloomberg reports. Durbin was one of group of Democratic senators – more than a third of the caucus – who urged Obama to nominate Yellen, currently the vice chairwoman at the Fed. 


ECONOMIC INDICATORS 

MBA Mortgage Index: The Mortgage Bankers Association releases its weekly report on mortgage application volume. 

ADP National Employment Report: Automatic Data Processing (ADP) will release its July report for private-sector job growth.


WHAT YOU MIGHT HAVE MISSED

— Corker: GOP shutdown threat 'a silly effort'

— Home prices post strongest gains since 2006

— Consumer confidence slips in July

— White House still looking to get fast-track trade authority through Congress by year's end

— GOP senator: Senate is 'headed for a big multi-train pile up' in September

— Feds poised to act on CEO pay

— Senate defense panel approves $594B Pentagon appropriations bill

— McCain worries as clock on deficit deal ticks toward August recess

— Hoyer could consider government funding bill that keeps sequester

— House GOP steps up pressure on IRS

— Reid: Watt nomination to wait until after August recess

— Financial regulators pressed on banks' commodities


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