On The Money: Democrats urge emergency funding for coronavirus | Kudlow says outbreak will have 'minimal impact' on economy | Top Dem demands Barr recuse himself from case against Turkish bank

On The Money: Democrats urge emergency funding for coronavirus | Kudlow says outbreak will have 'minimal impact' on economy | Top Dem demands Barr recuse himself from case against Turkish bank
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Happy Tuesday and welcome back to On The Money, where we hope you didn't wait up for the (partial) results from the Iowa Caucuses. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL--Democrats urge emergency funding for coronavirus outbreak: House Democrats on Tuesday urged Health and Human Services Secretary Alex Azar to request a package of emergency supplemental funding to deal with the coronavirus outbreak.

House Appropriations Chairwoman Nita LoweyNita Sue LoweyHouse Democrats set tight schedule for 2021 spending bills Julián Castro launches PAC to support progressive candidates Lawmakers call on VA to remove swastikas from headstones in veterans cemeteries MORE (D-N.Y.) and Labor, Health and Human Services subcommittee Chairwoman Rosa DeLauroRosa Luisa DeLauroCOVID-19 workplace complaints surge; unions rip administration Lack of child care poses major hurdle as businesses reopen Frustrations grow over incomplete racial data on COVID-19 cases, deaths MORE (D-Conn.) told Azar in a letter that the funding is needed to stage "an aggressive and comprehensive government-wide response to the 2019 novel Coronavirus, both domestically and internationally."

Lowey and DeLauro asked the administration to submit the request by Feb. 10.

  • The Centers for Disease Control and Prevention said it is already depleting the $105 million rapid response fund, and on Sunday Azar notified Congress that the department was looking at transferring $136 million from other programs. Azar can only transfer the funds 15 days after notifying Congress, on Monday, February 17.
  • Democrats are seeking additional funding in part to ensure that the administration does not transfer funds from priority programs important to Democrats, such as National Institutes of Health or Head Start programs.

 

ON TAP TOMORROW

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LEADING THE DAY

Kudlow predicts coronavirus will have 'minimal impact' on economy: White House chief economic adviser Larry KudlowLawrence (Larry) Alan KudlowMORE on Tuesday said that he thinks the novel coronavirus will have a minimal impact on the U.S. economy.

"Our estimates are minimal impact. The world is not in Wuhan province," Kudlow said in an interview with Fox Business Network. He estimated the outbreak could cost the economy 0.2 percent in the first quarter and potentially another 0.2 percent later on.

China's latest figures on the virus estimated that 20,000 people had been infected, and 425 people had died from it.

But while Kudlow predicted that the virus would not be "catastrophic" for the U.S. economy, he said it could dampen a promised rise in exports to China resulting from last month's "Phase One" trade deal.

"It is true the trade deal, the phase one trade deal, the export boom from that trade deal will take longer because of the Chinese virus," he said.

  • Under the terms of the deal, China had promised to increase purchases from the U.S. by $200 billion, but it also said it would do so according to market conditions.
  • Trade experts raised doubts that China would be able to hit that mark even before the outbreak led to quarantines, flight cancellations and some supply chain disruptions.
  • Sectors such as autos and auto parts might be hit harder than pharmaceuticals or chipmakers due to supply chain disruptions, Kudlow added.

 

Top Democrat demands Barr recuse himself from case against Turkish bank: Sen. Ron WydenRonald (Ron) Lee WydenCBO releases analysis on extending increased unemployment benefits Overnight Health Care: Hydroxychloroquine ineffective in preventing COVID-19, study finds | WHO to resume hydroxychloroquine clinical research | WHO says no evidence coronavirus is mutating Bipartisan lawmakers press Trump administration to get COVID-19 aid to Medicaid providers MORE (D-Ore.) is calling on Attorney General William BarrWilliam Pelham BarrFederal plan to contain Washington protests employs 7,600 personnel: report Davis: 72 hours cementing the real choice for November Black Lives Matter, protesters sue Trump admin over aggressive crowd clearing MORE to recuse himself from a federal case against a Turkish state-owned bank over concerns President TrumpDonald John TrumpFederal plan to contain Washington protests employs 7,600 personnel: report GOP Rep calls on primary opponent to condemn campaign surrogate's racist video Tennessee court rules all registered voters can obtain mail-in ballots due to COVID-19 MORE reportedly interfered in the investigation on behalf of Turkey's president.

Turkey's Halkbank is accused of transferring billions of dollars to Iran in violation of U.S. sanctions.

The request by Wyden, the top Democrat on the Senate Finance Committee, was detailed in a four-page letter Monday and prompted by reports that Barr raised concerns with former national security adviser John BoltonJohn BoltonHave the courage to recognize Taiwan McConnell says Obama administration 'did leave behind' pandemic plan Trump company lawyer warned Michael Cohen not to write 'tell-all' book: report MORE that Trump was trying to grant personal favors for leaders in Turkey and China.

The alleged conversation between Barr and Bolton was first reported last month by The New York Times, which cited an unpublished book manuscript by Bolton. The Hill's Laura Kelly explains the case here.

 

GOOD TO KNOW

 

ODDS AND ENDS

  • Macy's will close nearly a fifth of its locations as business in malls dwindles.
  • Strong majorities of Democratic, Republican and independent registered voters support a federal cap on interest rates that could pass the House later this year, according to poll results shared Tuesday with The Hill.
  • Patrick Dempsey is set to star in the pilot for a new TV show as a member of Congress secretly working with another across the aisle called "Ways and Means."