The House Prepares to Vote On Bill to End the Government Shutdown

Key takeaways

The House is set to vote on a spending bill to end the longest government shutdown in U.S. history.
Air travel will face disruptions even after the government reopens, with airlines needing time to restore normal operations.
Division within the Federal Reserve complicates potential interest rate cuts, with officials uncertain about the biggest economic threats.
The U.S. has minted its last penny, marking an end to its production due to financial inefficiencies.

Summary

Government Shutdown Bill Update

The House of Representatives is preparing to vote on a spending bill that aims to end the government shutdown, which has lasted longer than any in U.S. history. WSJ reporter Anvee Bhutani details that the bill includes funding for various federal departments through January, along with assurances regarding pay and job security for furloughed federal workers. Additionally, it proposes increased security funding for lawmakers following past security incidents. However, it lacks provisions for extending healthcare subsidies, a major point of contention between Democrats and Republicans.

Impact of the Shutdown on Air Travel

With the government still closed, air travel disruptions continue, affecting travelers like Abigail Roman, who canceled a trip due to delays. WSJ travel reporter Alison Poli explains that the FAA's order has resulted in significant flight reductions at major airports, and once the government reopens, airlines will have to phase back normal operations carefully, especially with Thanksgiving travel around the corner. Although flight cancellations were around 6% during this period, chaos has still impacted many travelers.

Federal Reserve's Divided Opinions

A clear division among Federal Reserve officials has emerged regarding whether inflation or labor market conditions are the greater threats to the U.S. economy. Chief economics correspondent Nick Timiraos discusses how this uncertainty complicates decisions about potential interest rate cuts. Currently, the Fed is relying on anecdotal evidence and surveys rather than concrete data to guide its decisions, leading to a lack of consensus.

End of the U.S. Penny Era

In a significant economic shift, the U.S. Mint has produced its last penny, with the move initiated by President Trump's directive. The government aims to save approximately $56 million each year by ceasing penny production, as it costs more to make a penny than its actual value. Despite the end of production, existing pennies will remain legal tender. A related podcast episode detailing the economic implications of copper pricing has also been released.

Show notes

P.M. Edition for Nov. 12. The House of Representatives is set to vote this evening on a spending bill that would end the longest government shutdown in U.S. history. WSJ reporter Anvee Bhutani walks us through what’s in the bill. Plus, Federal Reserve officials are divided as to whether it’s inflation or the labor market that is the bigger threat to the U.S. economy, stoking division ahead of the Fed’s December meeting. Journal chief economics correspondent Nick Timiraos explains what the disagreements mean for a possible rate cut. And the U.S. has minted its last pennies. Alex Ossola hosts.

Sign up for the WSJ's free What's News newsletter.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.