Washington Edition

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Every Monday, Bloomberg Intelligence senior analyst Nathan Dean gives his insights into what’s been happening and what’s coming up in the nooks and crannies of government and markets. Sign up here and follow us at @bpolitics. Email our editors here.

The First 100

Hope you all had a wonderful weekend. It was nonstop kids’ activities in our household, where we won some, lost some, and spent hours learning the Cecchetti method, which to me sounds like an economic theory, is in reality a style of ballet.

This week marks the first 100-days of President Donald Trump’s second term, and as a result, we at Bloomberg Intelligence will hold a webinar to discuss what has happened, and more importantly what we think is coming in terms of policy and your portfolio. It’s on Thursday, May 1, at 11:00 a.m. Eastern, and all are welcome to join. Here’s the registration link.

And for a look at how we got here, ‘Welcome to the Thunderdome’: Inside 100 Dizzying Days of Trump

Congress also returns this week to kick off Republicans’ efforts to pass their reconciliation bill to extend the 2017 Tax Cuts and Jobs Act. Markups begin this week. But again, we are telling clients – via our note on the terminal – that we think a deal will come likely this summer because of the debt ceiling inclusion. I still think there’s more chance of an increased deficit than massive cuts to Medicaid, SNAP and the Biden-era Inflation Reduction Act.

I’m in New York today at Bloomberg HQ but when I opened my terminal on the Acela this morning – quiet car for the win – here’s the latest from Bloomberg News I thought worth reading.

Trump Floats New Income Tax Cut in Bid to Ease Bite of Tariffs — Count me in the camp thinking that it’ll be tough to reduce income taxes further because of the impact on the deficit, but I won’t say it’s impossible.
Trump China Tariffs Set to Unleash Supply Jolt on US Economy — I just told my clients that the number one question we are getting is, “When are we getting the deals?” While Trump says it will be in three to four weeks, it seems like Treasury Secretary Scott Bessent is feeling the heat to get news out earlier. Watch out for trade deal “understandings,” or “MOUs,” to come as soon as this week.

We have elections in Canada today, so here’s Bloomberg News’ “Canada Election Live Results.” First returns are expected to come in tonight at 7:00 EDT.

Tidbits

I found this article “In India, Wine Culture Takes Off—With a Vineyard Scene That’s Worth a Trip” to be a fun read. If anyone knows where I can pick up a bottle of wine from India in the DC area, let me know.
The Fed recently released a small proposal last week on stress testing for banks. Here’s my view for those with terminals. Essentially, this one is pretty benign and won’t really change capital requirements. That proposal will likely come later this year. — Nathan R. Dean

Don’t Miss

Bessent and congressional Republicans will meet to sketch out the plan for passing a multi-trillion tax cut in the coming weeks as polling shows that voters largely disapprove of Trump’s handling of the economy.

A widely followed measure of Texas manufacturing activity weakened significantly as executives used words like “chaos” and “insanity” to describe the turmoil spurred by Trump’s tariffs.

Boos, shouts and insults dominated New York Representative Mike Lawler’s rowdy town hall as the GOP lawmaker’s constituents seethed over Trump and Republicans in Congress.

Steep cuts to federal funding and staffing threaten to weaken the US social safety net at a time when Americans are increasingly bracing for a tariff-induced economic slowdown.

Volunteers at a food bank in Plano, Texas. Photographer: Desiree Rios/Bloomberg

Commerce Secretary Howard Lutnick is poised to secure what could be a large capital gains tax break if he locks in about $54 million in paper losses as the tariff policies he’s championed hammered financial markets.

The president will sign orders the White House says will help law enforcement implement his deportation agenda by cracking down on places that restrict cooperation with immigration enforcement.

Trump said he thinks embattled Defense Secretary Pete Hegseth will “get it together,” suggesting he’ll stick with his choice to lead the Pentagon despite recent turmoil.

After nearly three decades of playing in Maryland, the Washington Commanders are headed back to the District of Columbia to build a new home at the site of RFK Stadium.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Republican Representative Bill Huizenga of Michigan about how tariffs are affecting his state and Trump’s scheduled appearance there tomorrow.

On the program at 5 p.m., they talk with Nazak Nikakhtar, former Commerce undersecretary, about the supply chain impact from tariffs on goods from China and the prospects for trade negotiations.

On the Big Take podcast, Bloomberg’s Francesca Maglione and Paulina Cachero join David Gura to break down the real cost of attending the most selective colleges and universities in the US — and how that cost changes depending on how much a family makes. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

Data released by the Census Bureau today shows a dramatic change in the likelihood that younger Americans own a home. Despite little change in the overall homeownership rate from 30 years ago — rising from 64.2% to 65.1% — there’s been a big shift in the age of homeowners. Fewer Americans in their prime working years are buying their own home, while a greater share of those age 65 and older are holding onto homes that they were able to buy during a long period of low mortgage rates. But now, economic and affordability constraints — primarily high interest rates and prices — have limited young adults’ ability to buy into the housing market. — Alex Tanzi

What’s Next

Job openings and layoffs in March will be reported tomorrow.

The Conference Board’s gauge of consumer confidence in April is set for release tomorrow.

Gross domestic product for the 1st quarter will be reported at 8:30 a.m. Wednesday.

The Fed’s preferred inflation gauge, the PCE price index, for March also will be reported at 8:30 a.m. Wednesday.

Pending home sales in March also will be released on Wednesday.

Construction spending in March will be reported on Thursday.

The April jobs report will be released Friday.

Factory orders for March also are released Friday.

The Federal Reserve next meets May 6-7.

Seen Elsewhere