Not One Thing?

Into the cosmic depths it goes.

“If I could only open one thing each morning it would be John Ellis’s News Items newsletter.” — Larry Summers, President Emeritus of Harvard University and former Secretary of the Treasury of the United States.

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1. China’s finance ministry is set to hold a media briefing on Saturday, reigniting expectations that Beijing is readying fiscal stimulus to boost the economy. The announcement came a day after the nation’s top state planner failed to meet hopes for additional fiscal measures, weighing on market sentiment in China and Hong Kong. China’s finance minister, Lan Foan, will chair the press conference scheduled to start at 10 a.m. on Saturday, the State Council Information Office said in a notice on Wednesday. Saturday is a working day in mainland China, though markets will be closed. The minister will introduce measures to “intensify countercyclical adjustment of fiscal policy,” the notice said, without providing additional details. (Source: wsj.com, italics mine)

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2. The U.S. budget deficit topped $1.8 trillion in the latest fiscal year, driven by higher spending on interest and programs for older Americans, as the government faces a persistent gap between federal outlays and tax collections. The new data comes as Republican presidential nominee Donald Trump and Democratic pick Kamala Harris are both proposing new tax and spending plans that are estimated to add trillions more to the deficit over the next decade.  In all, the government collected $4.9 trillion in revenue and spent $6.75 trillion in the year that ended Sept. 30, according to the Congressional Budget Office, which issued its estimates ahead of the official administration tallies expected later this month. The U.S. has run larger budget deficits before, both in dollars and as a share of gross domestic product. But the country set those records during wars, economic crises and the coronavirus pandemic, not during a period like today’s low unemployment and solid growth. (Source: wsj.com)

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3. The federal government could be nearing a collapse of its ability to help with major disasters as the second catastrophic hurricane in less than two weeks bears down on Florida. Hurricane Milton is whirling toward a possible landfall in Tampa Bay just as the main federal disaster programs are facing financial instability amid a series of recent calamities, including Hurricane Helene’s flooding of communities throughout the Southeast. Those include the Federal Emergency Management Agency’s disaster fund, which pays for repair and rebuilding efforts; the Small Business Administration’s loans to stricken businesses and homeowners; and FEMA’s flood insurance program. All could be within weeks of running dry of cash. (Sources: weather.com, politico.com)

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