Biden and Warren Buzz
Vice-President Joe Biden meets with Sen. Elizabeth Warren, stoking speculation of presidential run. CNN: "Warren and Biden discussed economic policy during a meeting that lasted about two hours ... the biggest indication yet that Biden is feeling out influential Democrats before announcing his intentions."
Biden "is increasingly leaning toward entering the race" says WSJ: "Mr. Biden still could opt to sit out the 2016 race, and he is weighing multiple political, financial and family considerations before making a final decision."
Some still want to draft Warren. The Hill: "'I think she’d be beating Hillary. That’s my opinion,' said Charles Chamberlain, executive director of Democracy for America ... 'She’d be doing as well or better than Bernie' [Campaign for America's Future co-director Robert] Borosage said, adding that it’s not too late for Warren to change her mind."
Sanders Stumps in SC
Sen. Bernie Sanders make his case to African-American voters in SC. Politico: "[Sanders] marbled his stump speech with topics designed to appeal to African Americans: criminal justice reform, voter disenfranchisement, economic inequality among minorities, and preventing police brutality ... The Sanders campaign also quietly reached out to local black leaders and activists for small-group sit-downs on subjects important to the black community."
Bernie refuses to go negative on Hillary. The Hill: "'You will never see us run attack ads against her,' [campaign adviser Tad Devine] said. 'You will never see, from him, the kind of personal, political attack that is common in presidential campaigns. He is not wired that way. He doesn’t believe in it. He thinks people are sick of it.'"
Trump Hits Hedge Fund Loophole
Trump suggests he will raise taxes on hedge fund managers. Reuters: "...Trump blasted hedge fund managers on Sunday as mere 'paper pushers' who he said were 'getting away with murder' by not paying their fair share of taxes ... 'The hedge fund guys didn't build this country. These are guys that shift paper around and they get lucky ... They pay no tax. It's ridiculous' ... Trump did not offer any specific detail on how he would like to reform the tax code."
"Trump attended big-donor fundraiser last month" reports Politico: "...even as Trump publicly scorned other candidates’ use of super PACs, he tacitly gave approval to the Make America Great Again PAC by attending a fundraiser the group held in New York last month."
Restaurants responding to higher minimum wage laws by offering no-tipping policies. NYT: "Managers say it would also allow them to better calibrate wages to reward employees based on the length of their service and the complexity of their jobs. Several also cited research showing that diners tend to tip black servers less and that the system can encourage sexual harassment of women."
Pressure On Fed Keep Rates Low
Larry Summers urges Fed to postpone rate hike in W. Post oped: "There can be no question that tightening policy will adversely affect levels of employment as higher interest rates make holding onto cash more attractive relative to investing ... This is especially troubling at a time of rising inequality."
Theory guiding Fed, linking low unemployment to inflation, not proven, notes WSJ: "The U.S. unemployment rate was 5.3% in July, just above the 5% to 5.2% range that Fed officials expect in the long run. But annualinflation readings have remained below the Fed’s 2% target, while pay raises seem stuck in low gear ... the simple link between U.S. unemployment and inflation described by the Phillips curve appeared to break down after the 1960s..."
China Market Tanks
"China to Flood Economy With Cash as Global Markets Lose Faith" reports WSJ: "...China looked to flood its banking system with new liquidity to offset effects of its recent surprise currency devaluation ... Beijing’s struggles this summer have spooked many investors into viewing China as a threat to, rather than a rescuer of, global growth."
NYT's Paul Krugman warns of a "global glut": "...policy makers [should] take seriously the possibility, I’d say probability, that excess savings and persistent global weakness is the new normal ... [But] Wall Street doesn’t want to hear that an unstable world requires strong financial regulation, and politicians who want to kill the welfare state don’t want to hear that government spending and debt aren’t problems in the current environment."
Reid To Whip For Iran Deal
Sen. Harry Reid backs Iran deal. W. Post: "'I’m going to do everything in my power to make sure the deal stands,' he said ... Reid [said] he was 'cautiously optimistic' that he would be able to secure enough support to prevent an override of Obama’s veto..."
As does former George H. W. Bush National Security Adviser, in W. Post oped: "...the JCPOA meets the key objective, shared by recent administrations of both parties, that Iran limit itself to a strictly civilian nuclear program with unprecedented verification and monitoring..."
Iran, shutdown faces Obama as he returns from vacation. NYT: "...Congress will have to pass funding legislation by the end of September to avoid shutting down the government for the second time in two years ... other pieces of must- and should-pass legislation [include] extending authority for highway and infrastructure spending, reauthorizing the Export-Import Bank and dealing with various expiring tax provisions ... The deadline for the first [Iran] vote is Sept. 14..."
