Conflict between Trump and Congress escalates as difficult agenda looms
The conflict between President Trump and Congress escalated a day after he threatened to shut down the federal government over funding for a U.S.-Mexico border wall as well as targeted opponents in Congress, aggravating tensions as a difficult legislative agenda looms.
Trump is now at odds not only with Democrats, who cemented their objections to funding the wall Wednesday, but also with Republicans, who must reconcile his brash rhetoric with the governing realities of Congress.
House Speaker Paul D. Ryan (R-Wis.) played down the prospect of a shutdown, telling reporters Wednesday that even if the wall debate remains unresolved, Congress probably would pass a stopgap extension of funding to prevent a lapse when the fiscal year ends on Sept. 30.
Other lawmakers chided the president for the attacks he fired off during a campaign-style rally in Phoenix on Tuesday evening — including indirect references to Arizona’s two Republican senators, Jeff Flake and John McCain.
“It’s entirely counterproductive for the president to be picking fights with Republican senators who he will need for important agenda items that they both agree on,” said Rep. Charlie Dent (R-Pa.). “Does he think that Democratic senators will be more cooperative than John McCain and Jeff Flake and Susan Collins? It doesn’t seem to make any sense.”
Debt Ceiling ‘Brinksmanship’ Could Test U.S. Top-Notch Credit Rating
Fitch says failure to raise the U.S. debt limit would prompt a review of the U.S. sovereign credit rating
Wall Street Banks Warn Downturn Is Coming
HSBC, Citigroup, Morgan Stanley say end of market boom is nigh
Breakdown in trading patterns is signal to get out soon
HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.
Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks, bonds and commodities as well as investors ignoring valuation fundamentals and data. It all means stock and credit markets are at risk of a painful drop.
“Equities have become less correlated with FX, FX has become less correlated with rates, and everything has become less sensitive to oil,” Andrew Sheets, Morgan Stanley’s chief cross-asset strategist, wrote in a note published Tuesday.