–Fed Chairman To Testify To Senate Banking Tues, House Panel Wednesday
–House Set To Vote On Bill Requiring Sequestration Details
–House Financial Service Panel Continues To Probe Dodd-Frank
–Senate Finance Panel To Mark-Up Bill For Normal Trade With Russia

By John Shaw

WASHINGTON (MNI) – Federal Reserve Chairman Ben Bernanke will
travel to Capitol Hill twice this week to give his semi-annual testimony
on monetary policy.

Bernanke will testify first to the Senate Banking Committee Tuesday
at 10 a.m. ET and then to the House Financial Services Committee
Wednesday at 10 a.m. ET.

The Fed chief is likely to be questioned on both monetary policy
and fiscal policy, with many questions about the coming fiscal cliff,
the status of the U.S. economic recovery, and economic developments in
Europe.

Congress will continue to probe several aspects of the coming
fiscal cliff this week. This refers to the convergence of three fiscal
events later this year or early next year: the expiration of Bush-era
tax cuts, across-the-board spending cuts, and increasing the statutory
debt ceiling.

The House Armed Services Committee will hold a hearing Wednesday at
10 a.m. on how the scheduled across-the-board spending cuts will impact
defense programs. Several representatives for defense contractors will
testify.

The full House will vote on a bill this week that will require the
administration to detail the full effects of across-the-board spending
cuts.

The House is also expected to begin working on the fiscal year 2013
defense spending bill.

Sen. Patty Murray, a member of the Senate Democratic leadership
team, will speak at Brookings Monday afternoon and is expected to repeat
the Democratic view that a comprehensive deficit reduction plan with
both spending cuts and tax hikes should be approved this year to avert
the fiscal cliff.

The full Senate is expected to consider a campaign finance bill
this week that would require companies and groups to disclose their
independent expenditures.

Then the Senate is expected to resume its debate on a small
business tax bill which has triggered a broader debate on the fate of
the Bush era tax cuts.

The Senate is considering a bill that would allow businesses to
deduct the full cost of equipment purchased this year and to extend to
firms a credit of up to $500,000 to offset 10% of the amount they spend
to expand their payroll in 2012 compared to last year.

Both the House and Senate are expected to vote this month on
President Obama’s plan to renew only those Bush-era tax cuts for
families making $250,000 or less as well as a Republican plan to extend
all of the tax cuts.

In other action this week on Capitol Hill, the Senate Agriculture
Committee will hold a hearing Wednesday at 10 a.m. ET on the impact of
the Dodd-Frank law. Gary Gensler, the chairman of the CFTC, will
testify, as will Robert Cook, director of the SEC’s Trading Division,
and several representatives of trade associations.

The Senate Finance Committee will mark up legislation Wednesday at
9:30 a.m. ET that would establish permanent normal trade relations with
Russia and remove Russia from the 1974 Jackson-Vanik amendment.

Several subcommittees of the House Financial Services Committee
will hold hearings this week on the Dodd-Frank law.

One subcommittee will hold a hearing Thursday at 10 a.m. ET on the
law’s impact on families, communities and small businesses.

Another subcommittee will hold a hearing Thursday at 2 p.m. ET on
the law’s impact on consumer choice and access to credit.

A third subcommittee will hold a hearing Friday at 9:30 a.m. ET on
the law’s effect on municipal finance.

The House Ways and Means Committee will hold a hearing Thursday at
9:30 a.m. ET on how tax reform might impact the manufacturing sector.

** MNI Washington Bureau: (202) 371-2121 **

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