Day 77: Trump’s Building Bridges for Health Care

This week, Trump began a new approach to Trumpcare and hosted Chinese President Xi Jinping at a Mar-a-Lago retreat. The Fed minutes from their March meeting were also released, revealing doubts about continued surges in the economy.

Trumpcare May Now Be Part of New Infrastructure Bill

• Trump makes a traditional political move appealing to Dems
• Health care and tax reform may be included in infrastructure plan
• The President looks to push massive spending along with tax cuts

On the heels of his failed heal health care reform bill, Trump is now trading in his business negotiation skills for traditional political maneuvers. The President is now considering attaching health care or tax reform as a rider onto his $1 trillion infrastructure bills, according to Fortune. The idea is to appeal to opponents like Democrats and Freedom Caucus members who may be enticed to support such a bill given its economic impact on their districts.

“I’m thinking about accelerating it,” Trump stated. “I’m thinking about putting it with another bill. Could be health care, could be something else. Could be tax reform.”

Trump walks a fine line between promises to “drain the swamp” and making insider deals, which essentially bribe congress members to support his agenda. Of course, he also risks pushing the US closer to bankruptcy with increased spending and tax cuts.

Trump Hosts Chinese President for Talks on Trade and North Korea

• Trump hosts Chinese President at Mar-a-Lago
• Trade talks and North Korea are on the table
• WH officials aren’t expecting big trade deals

On Thursday, Trump hosted his first meeting with Chinese President Xi Jinping to discuss US-Chinese trade and the growing concern over North Korea, according to Reuters. Trump will almost certainly be looking for a win since many of his supporters include trade unions looking for the President to deliver on bringing back manufacturing and jobs.

However, White House officials are downplaying the visit as an initial posturing and tone-setting meeting. “I don’t expect a grand bargain on trade,” one anonymous official told Reuters. “I think what you are going to see is that the president makes very clear to Xi and publicly what we expect on trade.”

North Korea may serve as a distraction from trade talks or a bargaining chip, depending on how aggressive Trump’s stance is.

Fed Minutes Reveal Pessimism about any Presidential Economic Boosts

• Contrary to their public statements, FOMC minutes reveal Fed might not be so hot on the Trump economy.
• The Fed seems to be watching Washington closely for the potential of more gridlock to slow growth.
• FOMC members continue to highlight “the considerable uncertainty about the timing and nature of potential changes to fiscal policies,” according to CNBC

March FOMC meeting minutes were released this week concerning the Fed’s quarter-point hike last month, which shows members had doubts about any infrastructure spending or lowered regulations.

Following the boosted growth forecasts the Fed released in the December meeting, March showed the FOMC moving those predictions to 2018. Red flags like the failure of Trumpcare have delayed other Trump agenda items, potentially including corporate tax cuts. Those ripples have the Fed beginning to ease back on the accelerator, which could potentially spell less hikes for the near future.