GDP growth expected but deemed fragile as US election approaches and Israel faces coalition deadlock
Economists anticipate a modest rise in US GDP, though they warn the growth is fragile, while Israel's parliamentary vote remains inconclusive with no clear coalition leader.
The Commerce Department will release its latest gross domestic product and inflation figures today, offering a snapshot of economic performance ahead of the upcoming midterm elections. Analysts expect the GDP number to rise compared with the spring, but several economists describe the expansion as "very, very fragile," citing inflation that is outpacing wage growth and a 3.7% year-over-year increase in consumer prices in September. The Federal Reserve, which left interest rates unchanged yesterday, is expected to monitor the data closely.
In the United States, campaign spending has intensified in competitive districts, with both parties investing six-figure sums in final messaging in 70 House races, according to an NPR analysis. Former President Barack Obama campaigned in Georgia, linking higher living costs to policies of President Donald Trump. Early voting trends show increased participation among Latino and young voters in Democratic-leaning areas, while non-supervoters are also turning out in larger numbers, creating uncertainty about the final electorate composition.
Across the country, voters will consider 145 statewide ballot measures in November, covering topics such as abortion, LGBTQ+ rights, taxes and voting reforms.
In Israel, more than 90% of ballots have been counted but no party has secured the 61 seats needed for a governing majority. Prime Minister Benjamin Netanyahu’s bloc holds 53 seats, while rival Gadi Eisenkot’s coalition has 48. Analysts note that Eisenkot could seek an alliance with Arab-led parties, which captured a record 19 seats, though political risks make such a partnership unlikely. Repeated elections remain a possibility, but Eisenkot has expressed reluctance to trigger another vote.
A lawsuit filed by the nonprofit Student Defense alleges that the Trump administration is improperly refusing to apply the “closed school discharge” rule, which requires the Education Department to cancel student loans for borrowers whose schools close unexpectedly. The Education Department says it stands by its implementation of the program.
Separately, a hacking group reportedly accessed personnel files of the Department of Homeland Security, exposing personal information of over 40,000 agents and associates.