Welcome to The Hill's Business & Economy newsletter {beacon} Business & Economy Business & Economy   The Big Story  Trump’s pick for budget chief faces fire in hearing Democrats grilled Russell Vought, who was tapped to be President-elect Trump’s next budget chief, for his ties to Project 2025 and past involvement with Schedule F as senators considered his nomination Wednesday. © Greg Nash At one point during questioning by Sen. Andy Kim (D-N.J.), Vought was pressed about his implementation of a measure known as Schedule F that can make it easier for federal employees to be fired.    Project 2025, a blueprint produced by the conservative think tank Heritage Foundation that was often the target of Democratic attacks during the 2024 presidential election cycle, also makes the case for the measure’s return.   Kim asked Vought about the implementation of Schedule F during his time as head of the Office of Management and Budget (OMB), the same post he hopes to fill once more under Trump.    “I guess I want to ask you then, at the end of your term as OMB director, you implemented Schedule F, and you implemented that as well at OMB. Do you remember what percentage of personnel at OMB you categorized as Schedule F?” he asked.   Vought testified that the measure was “not to fire anyone,” but “to change their classification” and that it was “implemented” at “90 percent.”   He said the move was to “ensure that the president, who has policy setting responsibility, has individuals who are ... responding to his views, his agenda, and it works under the same basis that most Americans work on, which is they have to do a good job or they may not be in those positions for longer.”   Schedule F, however, would end merit-based hiring protections for any member of the civil service whose position is converted. It would make the civil service more akin to political appointees, who can be swiftly hired and fired, raising concerns it would politicize the federal workforce.     Asked if the president-elect has had conversations about restarting Schedule F once he’s inaugurated, Vought said he doesn’t “speak to the conversations that I have with the president.”   The Hill's Aris Folley has more here.   Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.   Did someone forward you this newsletter? Subscribe here.   Essential Reads  Key business and economic news with implications this week and beyond:   Trump voters ‘going to get brutally scammed’ by ‘terrible’ economic ideas: Paul Krugman Economist Paul Krugman argues that voters who cast ballots for President-elect Trump’s “terrible” economic agenda are going to get “brutally scammed.”  Full Story   US ramps up Russia sanctions, targeting Moscow’s business partners The Treasury Department announced Wednesday it is amping up its sanctions against companies and entities involved in Russia’s defense industry.  Full Story   GOP rep to reintroduce bill to eliminate taxes on overtime pay A Republican House member is reintroducing legislation Wednesday that would eliminate taxes on overtime pay, an idea that has gained momentum among some lawmakers after President-elect Trump touted it on the campaign trail.  Full Story   Inflation speeds up, ends 2024 at 2.9 percent Inflation picked up speed in December as the U.S. economy showed unexpected signs of strength at the end of 2024.  Full Story {{if !contains(profile.lists,"Evening Report")}   {/if}}{{if !contains(profile.lists,"Evening Report")} COMING UP The Hill's Evening Report breaks down the day's big political stories and looks ahead to tomorrow. Click here to sign up & get it in your inbox {/if}}   The Ticker  Upcoming news themes and events we're watching: The Senate Finance Committee holds a confirmation hearing for Scott Bessent, Trump's Treasury secretary nominee, Thursday morning at 10 a.m. ET.   In Other News  Branch out with more stories from the day: Canadian minister warns that Americans will experience economic pain from Trump tariffs WASHINGTON (AP) — Canada’s energy minister came to Washington this week to warn U.S. lawmakers … Full Story   Good to Know  Business and economic news we've flagged from other outlets: Wall Street rallies on robust bank earnings and positive news on inflation (CNN) Freedom Caucus floats corporate tax boost in exchange for easing state, local deduction cap (Politico) TikTok Prepares for Immediate Shut-Off in the U.S. on Sunday (The Information)   What Others are Reading  Top stories on The Hill right now: Speaker Johnson removes Mike Turner as Intelligence Committee chair Speaker Mike Johnson (R-La.) will not make Rep. Mike Turner (R-Ohio) chair of the House Intelligence Committee in the 119th Congress, a source familiar with the decision confirmed to The Hill. Read more Which foods contain Red 3, the dye now banned by the FDA? A colorful ingredient you may find in your pantry or medicine cabinet is now banned by the Food and Drug Administration. Read more   What People Think  Opinion related to business and economic issues submitted to The Hill: The LA crisis is bigger than the fires — insurance is the next burning issue     You're all caught up. See you tomorrow!  Close Thank you for signing up! Subscribe to more newsletters here The latest in politics and policy. Direct to your inbox. Sign up for the Business and Economy newsletter Subscribe