What We’re Hearing on Capitol Hill
Author: Greg Valliere
January 22, 2025
THE RESTAURANTS AND BARS were filled yesterday — and everyone had an opinion and a forecast, as a radical new administration hit the ground running. Donald Trump has an iron grip on the GOP.
IT’S IMPOSSIBLE to cover all of the issues, but here’s a quick synthesis of what we’re hearing:
HERE COME THE LAWYERS: On issue after issue, litigation looms. High on a long list of regulations that will be targeted is what liberal activists consider an assurance in the Constitution that grants citizenship for individuals who were born in the U.S. This case alone will take months to resolve.
CONGRESSIONAL REPUBLICANS, GIDDY OVER THE TRUMP PRESIDENCY, are privately aghast at granting pardons to violent criminals. Republicans are lying low on this issue.
CABINET CONFIRMATIONS will speed up next week. Robert F. Kennedy, Jr. and Tulsi Gabbard are on thin ice; the rest of the nominees look safe.
TRUMP WILL TRAVEL TO CALIFORNIA in a few days. He’ll probably get a chilly reception, especially if Trump insists on concessions in exchange for funding.
AS WE WROTE YESTERDAY, the Democrats have no stars and no agenda, and on Capitol Hill the refrain is “what has happened to the Democrats?”
EVERYONE IS WATCHING THE POLLS, which show decent support — for now– for Trump. As long as his approval rating stays above 50% positive, neither party will dare to attack him.
FOREIGN POLICY IS THE BIG WILD CARD: Conservatives are increasingly isolationist, and are sick of sending money to Kyiv. Israel has decent support; Ukraine does not.
TRUMP MEANS BUSINESS ON TRADE: The president wants to crack down on auto imports into the U.S. and he’s determined to slash fentanyl shipments into the U.S. He’s not bluffing on trade — Canada, Mexico, China and others are preparing for a trade war that already has begun.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.
AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.
Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
For further information, please visit AGF.com.
©2025 AGF Management Limited. All rights reserved.