Welcome to The Policy Market - Seeking Alpha's presentation of today’s top policy-related news stories with potential market impact. Follow this account and turn the e-mail alert on to receive this article in your inbox each morning before the market open.
Divided Fed trims rates
As expected, the FOMC yesterday cut its Fed Funds target range by 25 basis points to 1.75%-2%. There were dissents from both sides, with Kansas City's Esther George and Boston's Eric Rosengren arguing for no move, and St. Louis' Jim Bullard stumping for a 50-basis point cut. He doesn't really have a vote, but the president tweeted his dissent, saying Jay Powell and the Fed have failed again. "No guts, no sense, no vision!"
DOJ working on gun background checks
Reports from D.C. indicate that Attorney General William Barr is circulating proposals on gun background checks. Barr is reportedly painting the background check legislation as more of a law enforcement tool, rather than gun control policy. There's been plenty of bi-partisan chatter, but not even a draft text of background check legislation has been agreed upon at this point. Among interested parties: Sturm, Ruger (NYSE:RGR), American Outdoor Brands (NASDAQ:AOBC), and Vista Outdoors (NYSE:VSTO).
Auto emissions battle rages on
"The Trump Administration is revoking California’s Federal Waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially SAFER," tweeted President Trump yesterday, confirming his intention to bar that state from setting its own emissions standards. The issue is far from resolved as what should be a long legal battle will come next. In general, automakers are somewhere in the middle between the Obama emission standards and the Trump's stance, hoping to strike a deal with California somewhere between 37-47 miles per gallon. Many automakers continue to advance their electric vehicle programs aggressively even as the dispute between California and the federal government heats up.