Yahoo Finance Government funding, Iran sanctions, VP Kamala Harris visits Asia: 3 things to watch in politics this week
While signs of a recession and Fed rate hikes remain top stories for investors, this week's political headlines are also worth paying attention to as Congress faces a government funding deadline, unrest grows in Iran, and Vice President Kamala Harris lands in Japan.
Here are three key stories to watch this week at the intersection of business and politics:
Government funding
Lawmakers must reach an agreement by Friday in order to avoid a government shutdown on Oct. 1. A procedural vote in the Senate on Tuesday will test support for the funding bill.
Sen. Joe Manchin (D-WV) has been pushing to include permitting reforms for energy projects as part of the negotiations, which he argues would loosen red tape to help the economy. Manchin is hoping to win some Republican support, but it's unclear whether he will as many Democrats are advocating to separate the permitting reforms from the continuing resolution.
Part of the continuing resolution will also likely include an additional $13 billion to aid Ukraine against Russia's invasion, as the New York Times reported earlier this month.
But a deal reached this week is not likely to last long.
Any vote ahead of Oct. 1 will likely just punt the government funding fight until after the midterm elections and ahead of the New Year. Lawmakers in both parties are hoping to avoid any political drama and get back to the campaign trail.
Iran sanctions
The U.S. Treasury Department relaxed some of its internet sanctions against Iran on Friday to counter some measures taken by Tehran to stifle ongoing protests in the country stemming from the death of a 22-year-old woman in the custody of Iran's morality police.
“As courageous Iranians take to the streets to protest the death of Mahsa Amini, the United States is redoubling its support for the free flow of information to the Iranian people," Deputy Treasury Secretary Wally Adeyemo said in a statement last week. "With these changes, we are helping the Iranian people be better equipped to counter the government’s efforts to surveil and censor them."
The move comes as the Biden administration has been exploring a new Iran nuclear disarmament deal after the Trump administration withdrew from the previous agreement. President Biden's National Security Adviser Jake Sullivan told CBS that the administration will continue the negotiations while speaking out against the repression of women.
The Treasury's decision to ease sanctions shows how tech diplomacy has evolved in the geopolitical sphere over the last several years. As the unrest plays out in Iran, Treasury Secretary Janet Yellen plays a key role in deploying and lifting sanctions.
Vice President Kamala Harris travels to Asia
Vice President Kamala Harris arrived in Japan to attend the funeral of former Japanese Prime Minister Shinzo Abe.
Reuters reported Friday that Harris will discuss Taiwan's security during her meetings with South Korea and Japanese officials.
The discussion over Taiwan has escalated recently after President Biden told CBS News's 60 Minutes that U.S. forces would defend Taiwan "if, in fact, there was an unprecedented attack." It was the most precise statement the president has made as it relates to potential U.S. military action in Taiwan.
Meanwhile, China has continued to conduct military exercises in the Taiwan Strait, generating uncertainty over how it intends to handle the island.
Kevin Cirilli is a visiting media at the Atlantic Council's Global China Hub and the Krach Institute for Tech Diplomacy at Purdue. Follow him on LinkedIn here.
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