Latest news with #TedLieu
Yahoo
23-05-2025
- Business
- Yahoo
Trump ‘reverse Robin Hood' tax bill is driving up the cost of buying a home, Democrats say
The cost for a 30-year fixed-rate mortgage crept up to levels not seen since February, reflecting bond market fears over Trump's plan to pay for tax cuts with an estimated $3.8 trillion in new debt. 'Trump and Republicans are directly responsible for the spike in the 30-year Treasury bond yield and mortgage rates,' argued Ted Lieu, the fourth highest-ranking Democrat in the House. Democrats say President Trump's proposed tax bill is responsible for pushing up the cost of owning a home as bond markets revolt against the prospect of trillions of dollars in new borrowing added on top of the national debt. The average cost of a 30-year fixed rate mortgage—which closely tracks long-dated Treasury yields—hit 6.86% this week, according to data from U.S. state-owned property lender Freddie Mac. It is the highest since mid-February when Trump hadn't yet sparked fears of a recession with his steep tariffs. 'Trump and Republicans are directly responsible for the spike in the 30-year Treasury bond yield and mortgage rates,' wrote Ted Lieu, the fourth highest-ranking Democrat in the House as caucus vice-chair. Fortune reached out to the White House for comment, and will update should it respond. The higher borrowing cost stems from concerns over the affordability of Trump's tax cuts, which prompted Moody's downgrade of U.S. sovereign debt last week. A poorly received Treasury auction of long-dated debt appears to be proving billionaire hedge fund manager Paul Tudor Jones right, that bond markets would choke on Trump's regressive tax cut agenda, financed by new borrowing. Should Senate Republicans send the bill to Trump for approval, it could lead to the closing of hospitals and nursing homes across the country, many in politically conservative rural areas. 'They will still—with their tax bill—be adding over $4 trillion to the national debt to cover their tax break for the wealthiest people in our country,' former House speaker Nancy Pelosi said this week on the floor of Congress. 'This is Robin Hood in reverse: taking resources from where it is most needed, the people who need it most, and giving it to those who need it least.' Mortgage rates have been higher, hitting 7.79% in October 2023, according to Freddie Mac. This peak, however, came shortly after Jay Powell hiked the Fed Funds rate one final time to a minimum of 5.25%. Starting this past September, his FOMC policy-setting committee has since reduced the overnight interest rate by a full percentage point. Therefore, the current cost of a 30-year fixed mortgage is still very high, given the Fed's recent easing on the short end of the yield curve. Investors are gradually reassessing their financial risks under the current administration, especially following years in which money managers overweighted their portfolios in favor of U.S. assets. UBS anticipates that international investors will reverse 60% of their five-percentage-point increase in ownership of U.S. equity markets since 2018. 'We think there has been a fundamental shift in how institutional investors view their U.S. exposure,' the Swiss bank wrote in a research note on Friday. According to an analysis this week by the Congressional Budget Office, the bill's tax cuts will add $3.8 trillion to the deficit even as it slashes $698 billion off of Medicaid, which provides healthcare for low-income Americans. It would also eliminate $267 billion that goes to the federal Supplemental Nutrition Assistance Program (SNAP), aka food stamps. In return, the debt ceiling will be raised, and the 2017 Trump tax cuts, due to sunset at the end of this year, will be made permanent. Other boons include more generous State and Local Tax (SALT) deductions and the preservation of the carried interest loophole, which benefits hedge funds and family offices, among other professional money managers. House minority whip Rep. Katherine Clark said the resulting debt will burden future generations. 'It is taking away healthcare for nearly 14 million Americans, it is the biggest cut to food programs we've ever seen,' the second-highest ranking House Democrat said on Thursday. 'What we have is a bill that is almost like it's constructed by cartoon villains.' Even Steve Bannon, Trump's former chief strategist, has warned Republican leadership against passing legislation that would hurt their MAGA base. This story was originally featured on
Yahoo
10-05-2025
- Business
- Yahoo
Hill Roundtable: What's next for AI infrastructure
The following is an executive summary from a roundtable breakfast that focused on discussing roadblocks and solutions surrounding the integration and implementation of artificial intelligence (AI) into our everyday lives. Participants cautioned against oversimplifying AI as 'magic' and emphasized the importance of understanding its actual capabilities and limitations. It was held under Chatham House Rules, prior to The Hill's Energy & Environment Summit on May 6 in Washington, D.C. The discussion featured a diverse group of more than 20 attendees, including U.S. Sen. Mike Rounds (R-S.D.), co-chair of the AI Caucus, and Rep. Ted Lieu (D-Calif.), vice chair of the Democratic Caucus as well as business and philanthropy leaders, researchers and policy advisers. The discussion was moderated by The Hill's Technology reporter Miranda Nazzaro and Bill Sammon, SVP of Editorial Content for The Hill. Introduction Artificial Intelligence is becoming increasingly ubiquitous, so much so that there's even a term for it. 'Ubiquitous AI' refers to the concept of AI being integrated into every aspect of our lives, from everyday devices to complex systems, making it accessible and beneficial to everyone, the concept sounds wonderful, putting it into practice is a different story. As lawmakers continue to grapple with how to regulate the technology, companies are scrambling to inform their opinions on the best way to create rules of the road for AI. How will AI continue to transform our society? How should we balance AI innovation and its potential risks? What will it take to reach 'Ubiquitous AI'? Using the energy sector as an example, which areas will be most impacted? And what does an informed, collaborative, and evidence-based approach to AI regulation and governance look like? 1. The Imperative of Public-Private Partnerships and Collaboration: Essential for Progress: There was a strong consensus that collaboration between the public and private sectors is not just beneficial but critical for the future development and responsible deployment of AI. This includes sharing expertise, resources, and understanding. Balancing Roles: The discussion explored the balance of leadership in AI policy. While industry drives innovation, government has a crucial role in setting top-line best practices, ensuring accountability, and establishing standards to foster trust. No single entity should operate in isolation. Government as an Enabler and Agenda Setter: Participants highlighted the government's potential to proactively shape the direction of AI development through funding initiatives, prize structures, and identifying areas where AI can address societal goals (e.g., wildfire prevention). Addressing the Government's Knowledge Gap: Lawmakers acknowledged the rapid pace of AI development and the need for Congress to learn from experts in the field. Initiatives like the Senate AI Caucus's events and the ASAP project aim to bridge this gap. 2. The Challenge of Pace and the Need for Adaptive Governance: Industry's Breakneck Speed vs. Government's Deliberation: A significant concern was the stark contrast between the rapid advancements in AI and the often-slower pace of governmental processes. This raises questions about the government's ability to keep up and regulate effectively. Regulation vs. Shaping: Participants suggested that instead of solely focusing on traditional regulation, the government should also focus on 'shaping' the market through incentives and strategic investments. The Need for Adaptability: Given the constant evolution of AI, rigid rules may become quickly outdated. The discussion emphasized the importance of adaptive systems, continuous information sharing, and iterative approaches to governance. Challenges for Higher Education: The rapid pace also presents challenges for educational institutions in developing relevant curricula that keep pace with industry changes. 3. Sectoral Regulation as a Preferred Approach: Targeted Expertise: Both Congressman Lieu and Senator Rounds advocated for a sectoral approach to regulation, where existing agencies with specific expertise (e.g., FAA, FDA, Department of Agriculture) tailor AI oversight to their respective domains, rather than a single, overarching AI bill. 4. The Profound Implications of Emerging AI Capabilities: AI Agents: The potential of AI agents capable of autonomously executing complex tasks based on simple prompts was highlighted as both 'amazing and alarming,' with uncertain societal and economic consequences. Artificial General Intelligence (AGI): While considered further out, the long-term implications of AGI, including potential widespread unemployment across all skill levels, were raised as critical considerations for future planning. 5. The Critical Intersection of AI and Energy: Growing Energy Demands: The increasing energy consumption of AI, particularly for large language models and data centers, was identified as a significant challenge. Projections suggest a substantial increase in national electricity demand due to AI. AI for Energy Solutions: Conversely, the potential of AI to drive advancements in energy efficiency, material science, and the development of new energy sources was also acknowledged. Infrastructure and Permitting: The need for significant investment in energy infrastructure, including transmission and new generation capacity (potentially including small nuclear reactors), was discussed, along with the challenges of permitting and local acceptance. Resilience and National Security: Concerns were raised about the concentration of data centers in specific geographic areas and the need for a resilient and secure energy supply to support both the AI industry and national defense. 6. The Importance of Data Regulation: Enabling Innovation and Avoiding Fragmentation: The lack of comprehensive data regulation in the U.S. was identified as a hindrance to innovation and a potential driver of market fragmentation, as companies are forced to comply with varying international standards (e.g., GDPR in Europe). 7. The Uncertainty of Timelines and Adoption: Adoption S-Curve: The discussion acknowledged that the widespread adoption of AI may follow an S-curve, potentially taking longer than current rapid advancements might suggest. AGI Timeline Uncertainty: The timeline for achieving AGI remains highly uncertain, impacting the relevance of different policy approaches. Focus on Foundational Elements: Despite timeline uncertainties, investments in fundamental research, digital infrastructure, and energy solutions were deemed crucial regardless of the specific pace of AI development. Comparative and Absolute Advantage: The discussion highlighted that even with absolute advantages in certain tasks, AI adoption will also be influenced by factors like cost, practicality, and comparative advantages of existing solutions. In summary, the roundtable highlighted the urgent need for proactive and collaborative approaches to AI governance, focusing on sectoral expertise, adaptability, and addressing the significant implications for energy infrastructure and the future of work. The rapid pace of innovation necessitates continuous learning and engagement between policymakers, industry leaders, and researchers. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
09-05-2025
- Business
- The Hill
Hill Roundtable: What's next for AI infrastructure
The following is an executive summary from a roundtable breakfast that focused on discussing roadblocks and solutions surrounding the integration and implementation of Artificial Intelligence into our everyday lives. Participants cautioned against oversimplifying AI as 'magic' and emphasized the importance of understanding its actual capabilities and limitations. It was held under Chatham House Rules, prior to The Hill's Energy & Environment Summit on May 6th in Washington, D.C. The discussion featured a diverse group of more than 20 attendees, including U.S. Senator Mike Rounds (R-SD), Co-Chair of the AI Caucus, and Congressman Ted Lieu (D-CA), Vice Chair of the Democratic Caucus as well as business and philanthropy leaders, researchers and policy advisors. The discussion was moderated by The Hill's Technology reporter Miranda Nazzaro and Bill Sammon, SVP of Editorial Content for The Hill. Introduction Artificial Intelligence is becoming increasingly ubiquitous, so much so that there's even a term for it. 'Ubiquitous AI' refers to the concept of AI being integrated into every aspect of our lives, from everyday devices to complex systems, making it accessible and beneficial to everyone, the concept sounds wonderful, putting it into practice is a different story. As lawmakers continue to grapple with how to regulate the technology, companies are scrambling to inform their opinions on the best way to create rules of the road for AI. How will AI continue to transform our society? How should we balance AI innovation and its potential risks? What will it take to reach 'Ubiquitous AI'? Using the energy sector as an example, which areas will be most impacted? And what does an informed, collaborative, and evidence-based approach to AI regulation and governance look like? 1. The Imperative of Public-Private Partnerships and Collaboration: 2. The Challenge of Pace and the Need for Adaptive Governance: 3. Sectoral Regulation as a Preferred Approach: 4. The Profound Implications of Emerging AI Capabilities: 5. The Critical Intersection of AI and Energy: 6. The Importance of Data Regulation: 7. The Uncertainty of Timelines and Adoption: In summary, the roundtable highlighted the urgent need for proactive and collaborative approaches to AI governance, focusing on sectoral expertise, adaptability, and addressing the significant implications for energy infrastructure and the future of work. The rapid pace of innovation necessitates continuous learning and engagement between policymakers, industry leaders, and researchers.
Time of India
29-04-2025
- Politics
- Time of India
US Dems cite Canadian PM Carney's ‘American betrayal' to target tariffs
US House Democratic leaders Pete Aguilar and Ted Lieu hold news conference where they target President Donald Trump and his administration. The Dem senators cornered Secretary of Defense Pete Hegseth on recent controversies and Trump for fracturing ties with Canada through tariffs.
The Onion
24-02-2025
- Politics
- The Onion
Democratic Leaders Stand Real Still In Hopes No One Notices Them
WASHINGTON—With the elected officials trying their hardest not to move a muscle, reports confirmed Monday that top Democratic leaders in Congress were standing real still in hopes that the American people wouldn't notice them. 'Don't make any sudden movements, or they'll spot us,' Rep. Hakeem Jeffries (D-NY) said out of the corner of his mouth, tightly squeezing his eyes shut as he reminded Rep. Ted Lieu (D-CA) and Sen. Chuck Schumer (D-NY) to hold their breath anytime a member of the voting public walked by. 'Did it work? I think we're in the clear for now, but that was a close one. They could have talked to us, for crying out loud, or worse—demanded that we do something. Unless we put our hands up in front of our faces and crouch down behind our briefcases, some of these voters may realize we've been standing here all along.' At press time, Sen. Amy Klobuchar (D-MN) had reportedly been dragged into a conversation with a constituent after the otherwise motionless lawmaker forgot to silence her phone.
