War, DHS, Powell 

L . Thomas Block

The war in Iran continues with no clear exit strategy. On Thursday, the Pentagon sent a $200 billion funding request to the White House to pay for resupplies needed for the war effort. The president will now have to determine what amount he will request from Congress. 

While Republicans have majorities in both chambers, this will not be an easy lift, especially in the House. There is a substantial group of fiscally conservative Republicans who are likely to ask for cuts in domestic spending to help fund the Department of Defense request. While some Democrats will lean towards supporting the request to make sure the U.S. military has the tools they need to fight, domestic cuts will be a tough trade-off to accept. 

The president continues to work on building the coalition to try to ensure safe passage through the Strait of Hormuz, but getting military commitments has been complicated.   

There are reports that behind-the-scenes talks to end the fighting are taking place, but at this point, no clear breakthrough appears in sight. 

DHS 

The Department of Homeland Security (DHS) continues to operate with no budget for the current fiscal year. Democrats continue to push for reforms at ICE, and Republicans are backing the president’s hardline on immigration. Democrats tried to get a bill passed that funded the less controversial missions of DHS, but Republicans didn’t support the effort. As lines grow at airports, the pressure to open the department grows. Talks are likely to continue over the weekend. 

Powell and Fed 

While the headline of this week’s FOMC meeting was the central bank holding rates steady, Chair Jerome Powell made headlines at his post meeting press conference. He said that he would remain as chair if the president’s nominee Kevin Warsh is not confirmed by the end of his term in May and added he would remain as governor at least until the Justice Department investigation is concluded. 

Disclosures (show)