Wednesday, September 20, 2017

The bipartisan effort to fix Obamacare just collapsed

The bipartisan effort to fix Obamacare just collapsed

patty murray lamar alexanderSens. Patty Murray and Lamar Alexander. Chip Somodevilla/Getty Images
Negotiations between GOP Sen. Lamar Alexander and Democratic Sen. Patty Murray on a bipartisan bill to stabilize the Affordable Care Act's insurance exchangescollapsed Tuesday, Alexander said.
"Senator Murray and I had hoped to agree early this week on a limited, bipartisan plan to stabilize 2018 premiums in the individual health-insurance market that we could take to Senate leaders by the end of the month," Alexander said in a statement. "During the last month, we have worked hard and in good faith, but we have not found the necessary consensus among Republicans and Democrats to put a bill in the Senate leaders' hands that could be enacted."
The announcement comes at the same time Republicans in the Senate are mounting one last effort to repeal and replace the ACA, better known as Obamacare, with what's become known as the Graham-Cassidy-Heller-Johnson plan.
The bipartisan bill had been taking shape following a series of hearings that included state-level insurance officials, health-policy experts, and governors. The participants offered a slew of ideas to help ensure that uncertainty was stripped out of the market for 2018 and to control costs for Americans.
Insurers have cited increased political uncertainty as a factor for both increasing premiums in the Obamacare exchanges and pulling out of markets altogether. Alexander and Murray hoped to alleviate some of that uncertainty with new legislation.
Influential Republicans including White House officials and the Senate Finance chair, Orrin Hatch, came out against the Alexander-Murray push, which helped doom the effort. House Speaker Paul Ryan said his chamber would not even consider a bipartisan stabilization bill.

South Korea, Japan laud Trump for taking hard line on North Korea

President Donald Trump speaks to world leaders at the 72nd United Nations General Assembly in New York on Sep. 19, 2017.
SPENCER PLATT/GETTY IMAGES
U.S. President Donald Trump's speech to the United Nations, where he warned he would "totally destroy" North Korea if threatened, reinforced the need for Pyongyang to realize it must give up its nuclear weapons, South Korea said on Wednesday.
In a hard-edged speech to the United Nations General Assembly on Tuesday, Trump mocked North Korean leader Kim Jong Un as a "rocket man" for his repeated ballistic missile tests.
"We view the speech as portraying a firm and specific stance on the key issues regarding keeping peace and safety that the international community and the United Nations are faced with," the office of South Korean President Moon Jae-in said in a statement on Wednesday.
"It clearly showed how seriously the United States government views North Korea's nuclear program as the president spent an unusual amount of time discussing the issue," the presidential Blue House's statement said.
Trump's speech "reaffirmed that North Korea should be made to realize denuclearisation is the only way to the future through utmost sanctions and pressure," it said.
Moon came to power in May on a platform of more engagement with North Korea. Since Pyongyang's sixth and largest nuclear test earlier on Sept. 3, however, Moon has said the time is not right for dialog.
He and Trump plan to meet in New York early on Wednesday U.S. time, Moon's office said.
"GREAT STRENGTH"
Trump's most direct military threat to attack North Korea was his latest expression of concern about Pyongyang's repeated weapons tests.
"The United States has great strength and patience, but if it is forced to defend itself or its allies, we will have no choice but to totally destroy North Korea," Trump told the 193-member world body. "Rocket man is on a suicide mission for himself and his regime."
U.S. ally Japan, which Pyongyang often threatens to destroy, has taken a consistently hard line on North Korea, pushing for increased sanctions and pressure.
"We greatly appreciate President Trump's approach to changing North Korea's policy stance, denuclearising the country and calling on the international community, including China and Russia, for their cooperation toward strengthening pressure on North Korea," Chief Cabinet Secretary Yoshihide Suga told reporters.
Suga also welcomed Trump's reference to a Japanese girl who was kidnapped by North Korean agents in 1977.
The plight of abductees is a key issue for Japanese Prime Minister Shinzo Abe, who has pledged to rescue them while in office, and an emotive one for the Japanese public.
North Korea admitted in 2002 it had kidnapped 13 Japanese in the 1970s and 1980s to train spies. Five of them returned to Japan but Tokyo suspects that hundreds more may have been taken.
MILITARY OPTIONS
North Korea, which has conducted more than 80 missile tests under third-generation leader Kim, says it needs its weapons to protect itself from U.S. aggression. South Korea and the United States are technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.
U.S. Defence Secretary Jim Mattis told an Air Force event on Wednesday that the effort to deal with Pyongyang was still diplomatically-led even as he acknowledged the "somber reality" that the Pentagon needed to have military options at the ready.
U.S. Ambassador to the U.N. Nikki Haley, speaking to CBS News, said on Wednesday the United States had lots of military options on North Korea that stop short of totally destroying the country, adding: "There are steps that lead up to that."
"No one wants war, the president doesn't want war. We have tried to do this through dialog, we have tried to do this through sanctions, we have tried every diplomatic measure that we possibly can. We're not giving up on diplomatic efforts," she said.
The U.N. Security Council has unanimously imposed nine rounds of sanctions on North Korea since 2006, the latest earlier this month aimed at restricting fuel supplies and cutting off textile exports, a key foreign exchange earner.
The United States has urged China, North Korea's main ally and trading partner, and Russia to do more to rein in Kim, something Trump appeared to allude to in his speech.
"It is an outrage that some nations would not only trade with such a regime but would arm, supply and financially support a country that imperils the world with nuclear conflict," Trump told the General Assembly.
China's Foreign Ministry, asked to respond to Trump's comments about destroying North Korea if it had to, said U.N. resolutions were clear the Korean peninsula issue should be resolved peacefully through political and diplomatic means.
The resolutions passed by the U.N. Security Council on North Korea reflected the "common will and consensus of the international community" to denuclearisation of the Korean Peninsula, Ministry spokesman Lu Kang told a regular briefing.
Mixed reactions on Donald Trump's United Nations speech(REUTERS)
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Tuesday, September 19, 2017

The Fed is getting ready for its 'biggest meeting of the year'

The Fed is getting ready for its 'biggest meeting of the year'

janet yellenFederal Reserve Chair Janet Yellen waiting to speak at the Federal Reserve System Community Development Research Conference in Washington on March 23. Cliff Owen/AP
The Federal Reserve is about to make a momentous decision that should not be taken lightly.
The central bank is widely expected to announce the start of a reduction in its $4.4 trillion balance sheet at the conclusion of its meeting on Wednesday. It's a move that the Fed hopes will go smoothly but that has the potential to rattle financial markets long accustomed to the Fed's monetary largesse.
The Fed bought large quantities of Treasury and mortgage bonds during the Great Recession and financial crisis of 2007-2009 in an effort to push down long-term borrowing costs and to stimulate an economy and credit markets that had ground to a halt. The policy, controversial in some quarters, was widely known as quantitative easing.
So the beginning of the reversal of QE is a big deal, even if Fed officials, leery of jittery bond investors, continue to reassure Wall Street that the gradual pace of reduction in the Fed's reserve base will mean there is little market impact.
Scott Anderson, the chief economist at Bank of the West, says the coming gathering of the rate-setting Federal Open Market Committee is "the biggest meeting of the year" for the central bank.
That's because what Chair Janet Yellen has to say in her quarterly press conference will lay the groundwork for expectations of a possible interest-rate hike in December and inform the outlook for the next year, Anderson wrote in an email to reporters.
He thinks the Fed is being too sanguine about the potential impact of unwinding QE, which it intends to accomplish by gradually reducing and eventually eliminating reinvestments of maturing bond returns back into the central bank's portfolio.
"Ongoing balance sheet reduction at the same time fed funds rate hikes continue at the same pace as this year might be too much tightening too soon for the expansion to bear without adverse consequences," Anderson said.
Anderson said he was "increasingly uncomfortable" with Fed policymakers' own projections that the central bank would raise interest rates three more times next year and in 2019.
Uncertainty about the path of interest-rate policy is heightened by an extensive round of looming top-level turnover at the Fed, including a possible replacement of Yellen when her term expires early next year and the appointment of a new vice chairman following the early resignation of Stanley Fischer.
"We still expect one more quarter-point hike from the FOMC in December, but no longer align with the Fed median for 2018 and 2019," Anderson said. "We forecast only two quarter-point hikes now for 2018 and 2019."
The main reason? Inflation continues to chronically undershoot the Fed's target, suggesting the labor market is not as firm as the official 4.4% jobless rate suggests.
In addition, "bond market inflation expectations remain well below historical norms, and the two- to 10-year Treasury spread has narrowed since the beginning of the year," Anderson said.
"This is a sign that the Fed could be pushing too hard to normalize monetary conditions, and the growth and inflation outlooks are at risk. Both bond market signals counsel a go-slow approach from the FOMC going forward."
Fed balance sheet BIAndy Kiersz/Business Insider

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