Jan 28, 2019

What's next on the wall showdown

People look at U.S. border patrol guards through the U.S.-Mexico border fence. Photo: Guillermo Arias/AFP/Getty Images

President Trump has set a Feb. 15 deadline for a deal to get his wall money, and he's signaled he'll declare a national emergency or use other executive powers if he can't get the money through Congress.

The big picture: White House officials I've spoken to claim that House Democrats have privately signaled they're willing to fund a border barrier. (They won't say who.) But even these same White House officials aren't trying to spin that the "conference" to negotiate border security will yield a breakthrough. As the NYT's Jonathan Martin put it: "This is not, to put it mildly, a build-the-wall crew."

A congressional Republican aide, reflecting a widely shared view, texted this prediction: "Next three weeks will be just a messaging war. WH will use proxies to hammer why the border is a national emergency. Dems will use the time to take a victory lap. ... Most likely outcome — no wall money. POTUS uses it to justify a national emergency. Appropriations process blows up for many years."

Between the lines: By declaring a national emergency, Trump would trigger the ability for the White House to move money around that Congress controlled — including Army Corps civil works projects and military construction projects. Members regard these monies as lifelines for their districts or states; Congress protects them zealously.

Go deeper: Trump's self-inflicted slump

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Peter Navarro defends hydroxychloroquine use in heated CNN interview

White House economic adviser Peter Navarro defended the use of anti-malarial drug hydroxychloroquine to treat coronavirus during a CNN interview Monday, highlighting "the possibility" that it has therapeutic efficacy.

Why it matters: Navarro did not deny reporting from Axios' Jonathan Swan that he got into a heated exchange in the White House Situation Room over the weekend with infectious disease expert Dr. Anthony Fauci about the drug's prospects against the illness.

Special report: Health care workers vs. coronavirus

Photo Illustration: Sarah Grillo/Axios. Photos: Angela Weiss/AFP via Getty Images, Bruce Bennett/Getty Images, and Europa Press News/Europa Press via Getty Images

Health care workers are at an especially high risk of catching the coronavirus, because of their prolonged exposure to patients who have it. Making matters worse, the U.S. doesn't have enough of the protective equipment, like masks and gloves, that keeps them safe.

  • And yet these workers, with loved ones of their own, keep showing up at hospitals across the country, knowing that more Americans than they can possibly care for are depending on them.
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Backed by the Fed, bond investors get bullish

Illustration: Sarah Grillo/Axios

The Fed's massive injections of liquidity have reopened much of the bond market, and after back-to-back weeks in which more than $100 billion flowed out of bond funds, investors have regained their bearings and now see opportunity.

What's happening: But after the hemorrhaging outflows relented last week, bulls may now be sticking their heads out a bit too far. Junk bond funds took in more than $7 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record.