Democrats, Trump Agree On $2 Trillion 'Bipartisan' Infrastructure Plan

Not long after Acting Chief of Staff Mick Mulvaney told Maria Bartiromo that he believed USMCA (the Nafta 2.0 trade deal that the Dems have promised to obstruct) had a better chance of passing than a long-hoped for bipartisan infrastructure plan, Nancy Pelosi and Chuck Schumer emerged from a lengthy meeting with President Trump with some interesting news.

The leaders said the talks had gone well, and that the two sides had agreed on a $2 trillion figure for a forthcoming plan to rebuild American bridges, roads railways and other vital infrastructure. Schumer told reporters that another meeting about financing will be held in three weeks.

Amusingly, Republican leaders in the House have told reporters in recent days that there's no appetite for such a large plan among Republicans in Congress.

Schumer

In a letter delivered to Trump ahead of the meeting, the Democratic leaders advised Trump that a bipartisan deal must include new sources of financing, considerations for clean energy, and protections for labor, women and minority business owners.

Judging by the bond market's reaction (which was pretty subdued), the market agrees with Mulvaney and expect that an infrastructure deal likely won't happen. Yields remained anchored near sessions lows, suggesting that investors have shrugged off the prospects for an even wider budget deficit.

Treasury