On The Money — Sponsored by Prudential — Trump nominates budget official Kraninger for consumer chief | Senate votes to block Trump ZTE deal | Stocks fall on trade tensions | House panel moves to markup budget

On The Money — Sponsored by Prudential — Trump nominates budget official Kraninger for consumer chief | Senate votes to block Trump ZTE deal | Stocks fall on trade tensions | House panel moves to markup budget
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THE BIG DEAL: President TrumpDonald John TrumpTrump rallies in Nevada amid Supreme Court flurry: 'We're gonna get Brett' Trump: 'Good news' that Obama is campaigning again Trump boosts Heller, hammers 'Wacky Jacky' opponent in Nevada MORE on Monday formally nominated White House budget official Kathy Kraninger to be director of the Consumer Financial Protection Bureau (CFPB).

Kraninger, an associate director of the White House Office of Management and Budget (OMB), would take control of a controversial agency created by the Dodd-Frank Act to police the financial sector.

The White House announced Kraninger's nomination on Saturday, less than a week before a key deadline to name a permanent director for the CFPB.

Kraninger would replace OMB Director Mick MulvaneyJohn (Mick) Michael MulvaneyProtect the Military Lending Act On The Money: Midterms to shake up House finance panel | Chamber chief says US not in trade war | Mulvaney moving CFPB unit out of DC | Conservatives frustrated over big spending bills Warren suggests Mulvaney broke law by speaking to GOP donors MORE, who has simultaneously served as the CFPB's acting chief since November 2017. Mulvaney's term as acting chief would have ended on June 22, this Thursday, if Trump had not nominated his replacement by then.

I've got more on the nomination here.

 

In a nutshell:

  • At OMB, Kraninger oversees $250 billion in federal spending for seven Cabinet departments and 30 federal agencies, according to the White House, including the Treasury Department and Department of Housing and Urban Development. She also oversees the CFPB budget in her White House role, though the bureau is independently funded through the Federal Reserve system.
  • Kraninger is also a former Senate Appropriations Committee staffer and helped open the Department of Homeland Security before her congressional career.
  • Her supporters point to her work at OMB reviewing the budgets and policies of federal financial regulators as critical background for the new post.
  • Even so, Kraninger's limited experience in financial regulation ties to Mulvaney has raised questions about the ways she'd wield the extensive authority given to the bureau's leader.

 

Reactions

 

What comes next: Kraninger is likely to face a lengthy confirmation battle as the Senate rushes to finish must-pass legislation and clear a slew of other Trump appointees before the November elections. She's likely to be confirmed sometime toward the end of 2017, as her nomination is not controversial among Republicans and could be supported by some moderate Democrats.

 

 

ON TAP TOMORROW

 

LEADING THE DAY

Senate votes to block Trump's ZTE deal: The Senate moved to block President Trump's deal to save Chinese telecommunications giant ZTE despite pushback from the White House.

Senators passed an annual defense policy bill on Monday that included a provision keeping the penalties in place against ZTE despite a deal reached earlier this month by the Trump administration. 

What's in the measure: In addition to keeping the Commerce Department penalties in place, the bill bans government agencies from buying or leasing telecommunications equipment and services from ZTE and Chinese telecom firm Huawei, as well as banning the government from providing loans to or subsidizing either company.

Background: The provision — spearheaded by Sens. Charles SchumerCharles (Chuck) Ellis SchumerTrump, GOP regain edge in Kavanaugh battle READ: President Trump’s exclusive interview with Hill.TV The Hill's 12:30 Report — Trump slams Sessions in exclusive Hill.TV interview | Kavanaugh accuser wants FBI investigation MORE (D-N.Y.), Chris Van HollenChristopher (Chris) Van HollenOvernight Defense: Details on defense spending bill | NATO chief dismisses talk of renaming HQ for McCain | North Korea warns US over cyber allegations Hillicon Valley: Trump signs off on sanctions for election meddlers | Russian hacker pleads guilty over botnet | Reddit bans QAnon forum | FCC delays review of T-Mobile, Sprint merger | EU approves controversial copyright law Trump authorizes sanctions against foreign governments that interfere in US elections MORE (D-Md.), Tom CottonThomas (Tom) Bryant CottonSprint/T-Mobile deal must not allow China to threaten US security GOP senators condemn 'vulgar' messages directed at Collins over Kavanaugh GOP turns its fire on Google MORE (R-Ark.) and Marco RubioMarco Antonio RubioNikki Haley: New York Times ‘knew the facts’ about curtains and still released story March For Our Lives founder leaves group, says he regrets trying to 'embarrass' Rubio Rubio unloads on Turkish chef for 'feasting' Venezuela's Maduro: 'I got pissed' MORE (R-Fla.) — sparked backlash from the White House, which is signaling it will try to remove it from the final bill.

White House response: “The Administration will work with Congress to ensure the final NDAA conference report respects the separation of powers” said Hogan Gidley, a deputy press secretary for the White House. More on the background to the fight here.

 

Ross faces questions about stock trades: Five days before reports surfaced last fall that Commerce Secretary Wilbur RossWilbur Louis RossThe seafood trade deficit is a diversionary tactic Wilbur Ross is wrong; the pain from the trade war is coming The booming economy trumps Trump's trade battle with China MORE was connected to cronies of Vladimir Putin through a shipping firm called Navigator Holdings, the secretary shorted stock in the Kremlin-linked company, positioning himself to make money on the investment when share prices dropped, according to Forbes.

 

Homebuilder confidence down on higher lumber prices: Homebuilder confidence fell in June behind spiking lumber prices because of an ongoing spat between the United States and Canada.

Builder sentiment in the market for new single-family homes fell 2 points, to 68, on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index released on Monday. 

The decline was mostly due to elevated lumber prices, although overall sentiment remains on solid footing.

"Builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability," said NAHB Chairman Randy Noel, a custom-home builder from LaPlace, La.

"Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017."

The Trump administration slapped tariffs averaging 20.83 percent on Canadian lumber imports in November.

The Hill's Vicki Needham tells us more about the issue here.

 

MARKET CHECK--Stocks fall as trade fears reemerge: From CNBC: "Stocks fell on Monday as a potential trade war between the U.S. and China -- the world's largest economies in the world -- left Wall Street rattled.

"The Dow Jones industrial average dropped 103.01 points to close at 24,987.47, with Intel as the worst-performing stock in the index. The Dow also extended its losing streak to five days.

"The S&P 500 fell 0.2 percent to 2,773.63, with telecom lagging. The Nasdaq composite meanwhile, pared losses to close flat at 7,747.03 as tech shares rose and Amazon hit an all-time high.

"Shares of Boeing and Caterpillar both fell 0.9 percent. The two companies are seen as bellwethers for global trade concerns given their large amounts of overseas business."

 

 

GOOD TO KNOW

  • The House Budget Committee will move this week to mark up a budget for the 2019 fiscal year, the panel's chairman announced Monday, despite some expectations it would refrain from doing so this year.
  • The digital payment company Square has obtained a license that will allow New York state residents to buy and sell Bitcoin through its mobile payments app, Cash.
  • An American businessman who lives in Singapore played a role in the wild string of events that led to Trump's meeting with North Korean leader Kim Jong-Un, according to the New York Times.
  • The tax law President Trump signed in December will lower charitable giving in 2018 by $17.2 billion, or 4 percent, before accounting for economic growth, according to a new report from the right-leaning American Enterprise Institute (AEI).
  • The European Union and Australia launched free-trade negotiations Monday, part of a push by U.S. allies world-wide to bolster economic links and counter fallout from President Donald Trump's "America First" policies, according to The Wall Street Journal.

 

ODDS AND ENDS

  • SurveyMonkey on Monday said that it has confidentially filed for an initial public offering with the Securities and Exchange Commission via its parent company SVMK.
  • The Federal Communications Commission (FCC) has launched the regulatory review for T-Mobile's proposed $26 billion acquisition of Sprint.