On The Money — Manchin makes counteroffer to Biden's big bill

Happy Wednesday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.

Today's Big Deal: Sen. Joe Manchin (D-W.Va.) is coming back to the table on Build Back Better. We'll also look at how the Federal Reserve is approaching Ukraine and the latest impact of Russian sanctions.

But first, find out how the war in Ukraine has shaken the sports world.

For The Hill, we're Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Reach us at slane@thehill.com or @SylvanLane, afolley@thehill.com or @ArisFolley and kevers@thehill.com or @KarlMEvers.

Let's get to it.

Manchin proposes scaled down BBB

Sen. Joe Manchin (D-W.Va.), who torpedoed President Biden's Build Back Better agenda at the end of last year, on Wednesday laid out a dramatically scaled down version that he says he could vote for under the special budget reconciliation process.

Manchin said he could support a reconciliation package that reforms the tax code and lowers the cost of prescription drugs if the money raised is split between spending on new climate change proposals and deficit reduction and fighting inflation.

The West Virginia senator clarified he hasn't made any formal counterproposal to the White House but is sketching the outlines of a proposal that he could support along with the rest of the Senate Democratic Caucus.

"There's not a proposal, there's just a conversation," he said of informal talks with White House officials.

• Manchin says half of the revenue raised from tax reform and prescription drug reform should be used to lower the deficit and fight inflation and the other half should be spent on whatever 10-year program has the most support in the Democratic caucus.

• He suggested spending on an array of initiatives to fight climate change would likely unify his Democratic colleagues.

• Manchin added that Democrats all agree on the need to "fix the tax code" and close corporate tax loopholes that allow some corporations to pay nothing.

Those statements come after President Biden did not mention the Build Back Better Act during his State of the Union address but called on Congress to implement some of its key measures, including lowering prescription drug prices, fighting climate change and enacting a minimum tax rate for corporations.

Alexander Bolton has more on Manchin's statements here.

STEADY AS SHE GOES

Powell lays out cautious plan to raise interest rates, combat high inflation

Federal Reserve Chairman Jerome Powell told lawmakers Wednesday the central bank would move ahead "carefully" with raising interest rates as the Russian invasion of Ukraine looms over its battle with inflation.

In testimony before the House Financial Services Committee, the Fed chief said the bank's monetary policy committee is on track to raise interest rates in two weeks with inflation well above target and the economy remarkably strong.

"Inflation is too high," Powell said, "but I would also say that given the current situation, we need to move carefully. We will be nimble."

"We will use our tools to add to financial stability, not to create uncertainty," Powell added.

Sylvan has the latest here.

SERIOUS BLOW

Russian economy taking 'serious blows,' Kremlin says

A Kremlin spokesperson on Wednesday said that the Russian economy was taking "serious blows" amid sanctions imposed by foreign governments as Moscow continues its attack on Ukraine.

"Russia's economy is experiencing serious blows ... But there is a certain margin of safety, there is potential, there are some plans, work is underway," Kremlin spokesman Dmitry Peskov said during a call with foreign reporters, according to CNN.

• President Biden asserted that the sanctions in place against Russia thus far contributed to a 30 percent loss in the value of the ruble and to the Russian stock market losing 40 percent of its value in less than a week.

• Biden also recently announced that the U.S. would close off American air space to all Russian flights, following similar action from the European Union and Canada. Biden said the move would work toward "further isolating Russia - and adding an additional squeeze - on their economy."

Read more here from The Hill's Monique Beals.

CRACKING DOWN

DOJ launches team to enforce sanctions on Russian oligarchs

The Department of Justice (DOJ) is launching a team to enforce its sanctions on Russian oligarchs after President Biden pledged in his address to Congress to go after their "ill-begotten gains."

Dubbed "Task Force KleptoCapture," the DOJ is assembling a team of its experts in sanctions, money laundering, tax enforcement and anti-corruption to prosecute those who seek to evade the punishing sanctions the U.S. has imposed with the aim of targeting "Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct."

• The task force will mine for those who break know-your-customer laws requiring identity verification as well as those who may seek to flout the sanctions using cryptocurrency.

• Most of Russian oligarchs' funds are held overseas, leaving them vulnerable to asset seizure, something the DOJ straightforwardly said it would be willing to do.

The Hill's Rebecca Beitsch explores the new effort here.

Read more: Here are five Russian oligarchs with ties to luxury property in NYC

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Good to Know

Partisan fissures emerged Wednesday during a Senate hearing about how to implement the $1 trillion bipartisan infrastructure package signed into law by President Biden last year.

GOP lawmakers urged Transportation Secretary Pete Buttigieg to rescind or modify December guidance that advises states to prioritize fixing existing roads and implement public transit or bike lanes before signing off on highway expansion projects.

Here's what else we have our eye on:

• U.S. businesses added 475,000 workers in February, according to data from payroll processor ADP released Wednesday, beating economists' expectations.

• The Senate unanimously passed cybersecurity legislation that would require companies in critical sectors to alert the government of potential hacks or ransomware.

• Senate Finance Committee Chairman Ron Wyden (D-Ore.) introduced legislation that would revoke Russia's trade status, which allows lower tariffs for Russian goods, in response to its invasion in Ukraine.

• The U.S. nuclear power industry is reportedly lobbying the White House to permit uranium imports from Russia amid the country's invasion of Ukraine.

That's it for today. Thanks for reading and check out The Hill's Finance page for the latest news and coverage. We'll see you Thursday.