Congressional Dynamics and Bond Market Reactions

This chapter analyzes the bond markets' response to the Federal Reserve's interest rate cuts and the implications for Congressional fiscal responsibility. It examines the negotiations surrounding tax issues, particularly the SALT deduction, and reflects on past experiences working with Congressional leadership during contentious policymaking. The discussion also covers the evolving relationship between Congress and the White House under Trump, emphasizing direct communication and the impact of loyalty and lobbying on legislative efforts.