TRP Financial Services Report

August 4, 2014

Last week we learned that the economy added another 209,000 jobs, which was the six straight month with growth of at least 200,000 new jobs.  Although the unemployment numbers ticked up slightly, the news followed on earlier positive reports that the economy grew by 4% in the second quarter.  For Democrats, who are hoping that a positive economy will mute other political factors in the upcoming election, the news couldn’t have been better.  Then on Thursday, Democrats were handed one last present, an unforced error by House Republicans who were forced to pull their border bill and replace it with another plan that has little chance of becoming law.  If Democrats are going to be able to swim against the tide and hold the Senate in November, it will help if their opponents continue to demonstrate their difficulties in governing.  At least the Senate blinked when it came to pragmatism over ideology on the highway funding patch, accepting the House version after the first example of a ping pong conference this year.  Both sides now retreat to their respective corners for the next five weeks before coming back for around two weeks in September. 

 The House and Senate are in Recess until September 8th, but before leaving, Leader Reid indicated that he expects the Senate to be working between the 8th and September 23rd, and could consider any of the following: the defense authorization, a temporary extension of Internet tax freedom measure, the Ex-Im Bank reauthorization, a Constitutional amendment on campaign finance reform as well as pending appropriations bills.  Reid also indicated that the Senate could reconsider election year fodder such as the minimum wage increase, the bill to overturn the Supreme Courts recent decision in the Hobby Lobby case as well as a bill aimed to help student debt.

The full edition of this week's Thorn Run Partner's Financial Services Report is available here.