On The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction

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THE BIG DEAL—Incomes, consumer spending soared in March as stimulus boosted economy: Consumer spending and personal income rose sharply in March, according to data released Friday by the Commerce Department, driven in part by President BidenJoe BidenWill Seattle officials use the same lawsuit defense they want to take away from police? Taliban warns of attacks on US troops after withdrawal deadline under Trump deal passes Pandemic inspector general blasts DOJ memo, urges Congress to clarify mandate MORE’s $1.9 trillion economic relief bill.

Personal income rose a staggering 21.1 percent in March after falling 7 percent in February, thanks in part to a third round of direct payments and other forms of aid authorized by Biden’s American Rescue Plan.
Personal consumption expenditures, which drive roughly 70 percent of U.S. economic growth, rose 4.2 percent in March after falling 1 percent in February.

How it happened: The sharp rebound in consumer spending and incomes came as Biden signed another massive round of fiscal stimulus and economic aid on March 11, though not all of that money was disbursed before the end of the month. The U.S. also added a whopping 916,000 jobs in March, indicating that at least some recovery in spending and incomes was likely even without the relief bill.

I break it down here.

But what about inflation? Inflation rose 1.8 percent year over year in March as measured by the personal consumption expenditures (PCE) price index minus food and energy, which is the Federal Reserve’s preferred gauge of inflation.

While the index jumped 0.4 percentage points on an annual basis in March, it remains 0.2 percentage points below the Fed’s annual target of 2 percent.
Economists across the board largely agree that inflation will continue to rise throughout the summer as the collapse in demand from 2020 reverses, but many believe it will even out as the economy returns to a normal pace.

In case you missed it: Powell voices confidence in Fed’s handle on inflation (from Wednesday)

LEADING THE DAY

Harris, senators work behind scenes on jobs package: Vice President Harris, Senate Majority Leader Charles SchumerChuck SchumerOvernight Health Care: US to ban most travel from India | 100 million Americans now fully vaccinated | Schumer backs Sanders on health care moves Schumer backs Sanders push on drug prices, lowering Medicare age The Hill’s 12:30 Report: Biden’s wide-ranging NBC interview MORE (D-N.Y.) and other top Democrats are working behind the scenes to put together a massive infrastructure and jobs package that is increasingly likely to pass without any GOP votes.

Democratic senators are jockeying to get their priorities added to the proposal — a sharp contrast to the small group of moderate Republicans and Democrats who are trying to craft a slimmed-down compromise measure.
Harris is soliciting ideas from Democratic lawmakers about what should be included in a broader infrastructure package that is expected to be based on Biden’s $1.8 trillion American Families Plan.

“The vice president is apparently calling all the Democratic members for their ideas, so there apparently is a bill in formation,” said Senate Majority Whip Dick DurbinDick DurbinOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Senators push to allow for remote voting during national crisis Harris, senators work behind scenes on jobs package MORE (D-Ill.).

The Hill’s Alexander Bolton tells us more here.

Who wants what? There’s a long line of Democrats who have thoughts on what should be included.

Durbin himself is pushing for additional education provisions, while Senate Budget Committee Chairman Bernie SandersBernie SandersOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Overnight Health Care: US to ban most travel from India | 100 million Americans now fully vaccinated | Schumer backs Sanders on health care moves Schumer backs Sanders push on drug prices, lowering Medicare age MORE (I-Vt.) wants to add language lowering the Medicare eligibility age.
Sen. Elizabeth WarrenElizabeth WarrenOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Harris, senators work behind scenes on jobs package Biden, progressives face high stakes in big speech MORE (D-Mass.) wants to substantially boost funding for child care.
Sen. Tim KaineTimothy (Tim) Michael KaineHarris, senators work behind scenes on jobs package Overnight Defense: Gillibrand makes new push for military sexual assault reform | US troops begin leaving Afghanistan | Biden budget delay pushes back annual defense policy bill Gillibrand makes new push for military sexual assault reform MORE (D-Va.), wants to make workforce training programs eligible for Pell Grants.
Sen. Sheldon WhitehouseSheldon WhitehouseOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Harris, senators work behind scenes on jobs package OVERNIGHT ENERGY: Senate nixes Trump rule limiting methane regulation | Senate confirms EPA chief: Biden’s climate goals are ‘an opportunity to lead’ | Fine-particle pollution disproportionately hurts people of color: research MORE (D-R.I.) is seeking more funding for oceans and coastal areas hit hard by the effects of climate change.
Senate Banking Committee Chairman Sherrod BrownSherrod Campbell BrownOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction The Hill’s Morning Report – Biden launches blitz for jobs plan with ‘thank you, Georgia’ Harris, senators work behind scenes on jobs package MORE (D-Ohio) is pressing leadership to include the PRO Act, which would expand protections for workers trying to organize, to any infrastructure and jobs package that passes under budget reconciliation.

Biden cancels military-funded border wall projects: President Biden is canceling projects to build a wall along the southern border using diverted defense funds and will use some funding to counter environmental damage from the wall’s construction.

Former President TrumpDonald TrumpPandemic inspector general blasts DOJ memo, urges Congress to clarify mandate Court watchers buzz about Breyer’s possible retirement Venezuela grants house arrest for six jailed US oil execs MORE had diverted billions in defense and military construction funds toward building the wall, using emergency powers after Congress refused to fully fund the project directly.
Upon entering office, Biden canceled the state of emergency Trump had declared along the southern border and paused construction on the wall in order to conduct a review.

“Today, the Department of Defense will begin cancelling all wall projects using the diverted funds, and will take steps to return remaining unobligated military construction funds to their appropriated purpose as permitted by law,” an administration official said.

The Hill’s Niv Elis tells us how it works here.

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ON TAP NEXT WEEK

Tuesday:

A House Financial Services subcommittee holds a hearing on housing sustainability and climate change at 12 p.m.

Wednesday:

The Peterson Institute for International Economics hosts a webinar on digital trade negotiations at 10 a.m.

Thursday:

The House Financial Services Committee holds its third hearing on the GameStop stock trading frenzy at 12 p.m.
A House Small Business Subcommittee holds a hearing on job creation through infrastructure at 12 p.m.

Friday:

The House Financial Services Committee’s task force on artificial intelligence holds a hearing on racial discrimination and algorithms used in the housing and financial services industries at 12 p.m.

GOOD TO KNOW

The Biden administration on Friday said that it still needs more time to determine its position in a lawsuit over House Democrats’ request for former President Trump’s tax returns.
President Biden and Sen. Shelley Moore CapitoShelley Wellons Moore CapitoHarris, senators work behind scenes on jobs package Biden, key GOP senator talk infrastructure after joint session Senate passes bipartisan B water infrastructure bill MORE (R-W.Va.), who has taken the lead for Republicans on infrastructure, spoke Thursday, just one day after the president detailed a $4 trillion spending package to a joint session of Congress.
Senate Majority Leader Charles Schumer (D-N.Y.) said in an interview published Friday that he supports measures to allow Medicare to negotiate drug prices, as well as lowering the Medicare eligibility age and creating a public health insurance option.

ODDS AND ENDS

Sens. Catherine Cortez MastoCatherine Marie Cortez MastoOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Hillicon Valley: DOJ to review cyber challenges | Gaetz, House Republicans want to end funding for postal service surveillance | TikTok gets new CEO Americans for Prosperity launches campaign targeting six Democrats to oppose ending filibuster MORE (D-Nev.) and Rob PortmanRobert (Rob) Jones PortmanOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Hillicon Valley: DOJ to review cyber challenges | Gaetz, House Republicans want to end funding for postal service surveillance | TikTok gets new CEO Senators push to allow for remote voting during national crisis MORE (R-Ohio) on Friday introduced a bill to improve U.S. competitiveness against China and other nations by strengthening the nation’s ability to set standards around emerging technologies.
Swiss authorities pushed back on President Biden’s comments about Switzerland being a “tax haven” for corporations, calling his words “inappropriate” and “out of date.”