Emmanuel Macron Wins Reelection as French President

 

Credit: Nathanael Mergui 

French President Emmanuel Macron won reelection as president of France this past week, defeating his right-wing Eurosceptic rival Marine Le Pen in a rematch of the 2017 election. Macron led Le Pen 59% to 41%.

Macron and Le Pen had finished first and second respectively in the first round of the presidential election earlier this month, defeating a wide array of other rivals. The third-place finisher, Jean-Luc Melanchon, did not endorse either candidate, but encouraged his voters not to vote for Le Pen.

While Macron’s victory will prevent any marked change in France’s involvement in the European Union, Le Pen’s performance marked a highest level of support for her right-wing to far-right party in French presidential elections.

 

 

White House Reportedly Weighing Student Loan Debt Relief

President Joe Biden is reportedly weighing forgiving up to $10,000 of federal student loans. This comes as he struggles to regain footing among younger voters. Biden has previously resisted pressure to eliminate debt even while he extended repayment relief multiple times during his term.

Activists and politicians who have been advocating loan forgiveness, such as Sen. Elizabeth Warren (D-MA), have pushed for Biden to forgive up to $50,000 in debt. The White House has so far ruled out that amount.

The administration is also considering limiting relief to borrowers below a certain income threshold.

 

Economy Contracts in Q1 as Fed Attempts to Rein in Inflation

The US economy contracted in the first quarter for the first time since the coronavirus pandemic began.

Gross Domestic Product (GDP) fell by 1.4% annualized in Q1, which fell far below the consensus view that the economy would actually grow around 1% at an annual rate for the quarter. The major driver of the decline was an increase in the trade deficit, with imports surging from Q4 2021, while exports dropped from the same period. Imports are subtracted in GDP calculations, while exports are added. Inventories also decreased in Q1 after a buildup of inventories in the previous quarter.

While an economic contraction is not an ideal scenario, a deeper look reveals some more encouraging metrics. Consumer spending rose in Q1, with private demand rising 3.7%. This occurred even in the midst of accelerating inflation brought on existing economic conditions as well as the economic turmoil caused by the Russian invasion of Ukraine and the resulting financial sanctions.

While the Federal Reserve is often reluctant to raise interest rates amid a slowing economy, the latest numbers are unlikely to halt the Fed from raising interest rates this year in an attempt to tamp down on rising prices. Financial markets have experienced volatility the past few weeks as they price in the expected increases, which, by raising the cost of borrowing money, will slow down the economy, in turn reducing price increases. Besides reducing inflation, the Fed will also attempt to avoid a recession, which is defined as two consecutive quarters of economic contraction, though given the rates of inflation seen over the past year, this will remain a difficult balancing act.

 

Ketanji Brown Jackson Heads Towards Likely Confirmation

The Senate Judiciary Committee completed the Supreme Court confirmation hearings for US Appeals Court Judge Ketanji Brown Jackson last week, with Jackson likely heading towards confirmation to become the first black woman on the Supreme Court given Sen. Joe Manchin’s (D-WV) announcement that he will support her nomination.

Jackson, who was nominated to succeed retiring Justice Stephen Breyer, was first installed on the US District Court for the District of Columbia in 2013 by President Obama and was elevated to the Appeals Court for the DC Circuit in 2021 by President Biden. Prior to her service on the federal bench, Jackson was vice chair of the US Sentencing Commission and had worked as a federal public defender.

Jackson’s ascension to the Supreme Court would likely not have a major effect on the ideological makeup of the court, as she, widely perceived as a liberal jurist, would be replacing Breyer, another liberal jurist. One possible shift, however, would be in the court’s approach to certain criminal justice issues. Breyer was often deferential to prosecutors and police, while Jackson’s record does not show such a deference.

 

Manchin Reportedly Working to Revive Spending Package

Sen. Joe Manchin (D-WV) has given signals that he may be willing to negotiate on a slimmed down version of the previous Build Back Better bill, which he effectively killed in December 2021 after he announced his opposition to it on Fox News Sunday. This bill would likely focus on controlling drug prices, energy policy, and tax increases.

Any legislation he puts forth will still need the support of the 49 other Democratic senators (barring any GOP defections), including fellow moderate Kyrsten Sinema from Arizona. Sinema has been in the past been hesitant to support some of the tax increases proposed last year.