ILA Credits Donald Trump with Successful Conclusion of East Coast Ports Labor Deal

— U.S. dockworkers and shipping companies reach tentative labor deal. U.S. dockworkers and shipping companies have reached a tentative labor agreement, ending a contentious contract dispute that drew attention from both President Biden and President-elect Donald Trump. The deal, reached verbally on Wednesday, must still be ratified by employers and the tens of thousands of members of the International Longshoremen’s Association. Link to special report. Details of the new tentative agreement would not be released to allow both the ILA rank-and-file-members and USMX members to review and approve the final document. Link to joint statement.

The agreement, finalized ahead of the Jan. 15 deadline, averts a potential strike that could have disrupted major U.S. ports and rattled the economy. A previous three-day strike last October had briefly impacted key trade gateways like the Port of New York-New Jersey and the Port of Savannah.

Negotiations had centered on pay raises and port automation. The Biden administration facilitated a partial agreement earlier, which included a 62% pay increase over six years. The new deal reportedly balances job protections with a framework for introducing technologies to modernize ports and create additional jobs.

Dockworkers will continue operating under the existing contract until the new agreement is ratified.

The U.S. Meat Export Federation (USMEF) hailed the tentative contract agreement as critical for U.S. red meat exports. Dan Halstrom, USMEF President and CEO, emphasized that avoiding work stoppages at East and Gulf Coast ports strengthens the U.S. agricultural industry’s reputation as a dependable global supplier.

Relief was echoed across other organizations:
· National Grain and Feed Association: Highlighted the importance of uninterrupted supply chains for U.S. agricultural products.
· National Retail Federation: Commended the agreement as vital for the overall economy.

The ILA credited Donald Trump’s support for the successful conclusion of negotiations. Harold Daggett, ILA President, stated that “President Trump’s bold stance helped prevent a second coast-wide strike at ports from Maine to Texas.” The union emphasized that Trump’s public backing of their position against automated terminals was instrumental in reaching the agreement. The statement praising Trump did not mention outgoing President Joe Biden.

— Musk aims to slash federal spending, acknowledges challenges. Elon Musk, co-leader of the Department of Government Efficiency (DOGE), reiterated his ambitious goal of cutting $2 trillion from federal spending but acknowledged it might not be fully achievable. “I think if we try for $2 trillion, we’ve got a good shot at getting one,” Musk said Wednesday during a livestreamed conversation with Stagwell CEO Mark Penn on his platform X. Musk described the $2 trillion target as a “best-case outcome” but emphasized the importance of setting ambitious goals to drive results. Appointed by President-elect Donald Trump alongside entrepreneur Vivek Ramaswamy, Musk has proposed reducing the federal workforce, mandating in-office work for government employees, and eliminating certain agencies to streamline spending.

In the discussion, Musk expressed confidence, stating that the federal government presents a “target-rich environment for saving money.” However, he criticized systemic inefficiencies, saying, “The system prevents [those who care about efficiency] from doing so.”

The conversation also touched on broader topics, including artificial intelligence, Mars colonization, and humanoid robots, underscoring Musk’s far-reaching interests beyond government reform.

— Biden reflects on fitness, electability, and the 2024 election. In a candid interview with USA Today on Jan. 8, President Joe Biden, days away from leaving office, shared his reflections on his ability to serve another term, the 2024 election, and his interactions with President-elect Donald Trump.

Fitness for Another Term
At 82, Biden openly addressed concerns about his stamina and capacity to lead, admitting, “I don’t know. Who the hell knows?” While acknowledging doubts about his ability to serve another four years, Biden expressed confidence that he could have won re-election, citing supportive polling data. “It’s presumptuous to say that, but I think yes,” he stated.

Decision to Withdraw and Election Outcome
Biden’s decision to step aside from the 2024 race followed a contentious debate with Donald Trump that raised questions about his age and fitness for office. The poor performance prompted Democratic allies to urge his withdrawal. After exiting the race in July 2024, Biden endorsed Vice President Kamala Harris, who later lost to Trump in the November election.

Reflections on Trump and Transition
Discussing his interactions with Trump, Biden shared his advice against pursuing political adversaries and revealed that Trump had praised aspects of Biden’s economic policies. Biden also mentioned he was deliberating on issuing pre-emptive pardons to protect individuals from potential actions by the incoming administration.

— Panama Canal CEO denounces Trump’s demands as ‘chaotic.’ Panama Canal Authority CEO Ricaurte Vásquez Morales, in remarks to the Wall Street Journal, refuted President-elect Donald Trump’s assertions that China controls the canal and dismissed calls for preferential treatment for U.S. ships. In an interview, Vásquez Morales emphasized that such demands would violate international law and the canal’s neutrality treaty. Panama’s Foreign Minister Javier Martinez-Acha also rejected Trump’s idea of reclaiming the canal, asserting its sovereignty is “not negotiable.” While Chinese companies manage nearby ports, the canal remains under full Panamanian control. Vásquez Morales clarified that canal tolls, which average $750,000 per crossing, are determined by ship size and type, with no discriminatory practices.

— U.S. legislation proposed to reacquire Panama Canal. Rep. Dusty Johnson (R-S.D.) is set to introduce the Panama Canal Repurchase Act, authorizing the president to negotiate reacquisition of the canal from Panama. This aligns with recent statements by President-elect Trump advocating for the move.

Key points of the bill:
· Authorizes the president to initiate negotiations with Panama.
· Requires a report to Congress within 180 days on negotiation progress, challenges, and outcomes.
· Seeks to counter China’s growing influence in the area, emphasizing U.S. global security interests.

Background. The Torrijos-Carter Treaties (1977) transferred canal control to Panama, fully implemented in 1999. Trump has criticized the treaties, claiming the U.S. “gave it away for One Dollar” and has not ruled out military action. Some Republicans, including Sen. Roger Wicker (R-Miss.), view these statements as “aspirational.” The proposal reflects a potential shift in U.S. foreign policy with significant diplomatic implications, especially concerning U.S./Panama relations and global trade.

— FOMC minutes highlight inflation concerns amid uncertainty over trade and immigration policies.

• Rate decision: A majority of Federal Reserve officials supported a 25-basis point rate cut at the Dec. 17-18 meeting, while some saw merit in holding rates steady, citing persistently elevated inflation risks.
• Inflation focus: Despite progress toward the 2% inflation target, officials remained cautious about upside risks, driven by strong spending and elevated inflation data.
• Policy divergence: Cleveland Fed President Beth Hammack dissented, advocating for steady rates to ensure inflation returned to 2% amid economic strength.
• Economic uncertainty: Officials highlighted elevated uncertainty regarding the impact of potential trade and immigration policy changes under the incoming Trump administration, influencing inflation and economic forecasts.
• Gradual approach ahead: Officials indicated a cautious approach to further rate adjustments, with a focus on evolving economic conditions and potential policy impacts. This uncertainty may slow future rate cuts while ensuring alignment with inflation and labor market goals.

— U.S. consumer borrowing declines sharply as credit-card balances drop. U.S. consumer debt dropped unexpectedly in November, marking the largest decline in over a year, driven by a significant reduction in credit-card balances, according to Federal Reserve data.

• Total credit fell by $7.5 billion, contrasting with economists’ expectations of a $10.5 billion increase.
• Revolving debt, including credit-card balances, dropped $13.7 billion, the steepest decline since early in the pandemic.
• Non-revolving credit, such as auto and education loans, rose by $6.2 billion, supported by surging vehicle sales in November.

The data highlight consumer efforts to reduce debt amid credit-card interest rates near a record 22.8%. Despite a full percentage-point cut to the Fed’s benchmark rate in 2024, borrowing costs remain high, offering only modest relief to households.

— GAO report highlights FDA’s shortcomings in food safety inspections. The Government Accountability Office (GAO) has revealed critical deficiencies in the Food and Drug Administration’s (FDA) food safety inspection efforts (link). Since fiscal year (FY) 2018, the FDA has failed to meet mandated inspection targets for both domestic and foreign food facilities, raising serious concerns about food safety oversight.

Domestic Inspections:
• The FDA Food Safety Modernization Act (FSMA) mandates inspections every three years for high-risk facilities and every five years for non-high-risk facilities.
• In FY 2019, 7% of high-risk domestic facilities due for inspection were missed; this increased to 49% by fiscal year 2021.
• For non-high-risk facilities, uninspected rates climbed from 38% in 2020 to nearly 74% in 2021.

Foreign Inspections:
• The FSMA sets an annual target of 19,200 foreign facility inspections, but the FDA averaged only 917 inspections annually from fiscal years 2018 to 2023.
• The peak was 1,727 inspections in 2019, merely 9% of the target.

Challenges and Recommendations:
• Workforce shortages are cited as a primary barrier; as of July 2024, only 432 investigators were available, 90% of the full-time capacity.
• The GAO recommends Congress and the FDA take steps to:

— Reassess realistic foreign inspection targets.
— Expand and optimize the foreign investigator team.
— Reduce incomplete domestic inspections.
— Implement a formal performance management process.

— USDA plans to build HPAI vaccine stockpile amid ongoing outbreaks. USDA announced plans to rebuild its stockpile of highly pathogenic avian influenza (HPAI) vaccines to address current outbreak strains like the D1.1 strain. While vaccination efforts in commercial poultry are not imminent, the agency emphasizes planning for future outbreaks. Existing vaccines, licensed or otherwise, are not yet ideal matches for the virulent H5N1 strain circulating among wild birds and poultry farms.

To address this, USDA is working on updating vaccines to better match the current strain, evaluating their use for other livestock, and preparing contracts for licensed vaccines to start rebuilding the stockpile. The agency clarified that while vaccination is not yet being implemented, it is progressing with strategies to manage HPAI. USDA said it remains optimistic about the potential of a successful vaccine to curb the spread of the virus.

— USDA expands dairy HPAI testing amid California and Texas detections. USDA’s Animal and Plant Health Inspection Service (APHIS) announced that 15 additional states have joined the National Milk Testing Strategy (NMTS), bringing the total to 28 states, covering nearly 65% of U.S. milk production. New states include Alabama, Arizona, Delaware, Iowa, Georgia, Kansas, Minnesota, New Jersey, New Mexico, Nevada, Oklahoma, Rhode Island, Tennessee, Utah, and Virginia.

Recent H5N1 detections in dairy herds were reported in California and Texas, with Texas’ latest case on December 13, 2024. Testing to date has not identified the virus in other states, but NMTS efforts may uncover additional cases. Currently, 11 states are in Stage 2 of the NMTS, operating state-level bulk tank sampling programs, while California is in Stage 3 with rapid response measures for affected areas.

Over 110,000 samples have been tested by USDA laboratories, including milk from multiple herds and samples from wild and domestic animals, underscoring the breadth of surveillance efforts.

— NWS weather: Decreasing light lake-effect snow downwind from the Lower Great Lakes on Thursday... ...A developing Winter Storm will produce snow and rain/freezing rain, icing, over parts of the Southern Plains and Lower Mississippi Valley on Thursday and over the Lower Mississippi Valley to the southern Mid-Atlantic on Friday... ...Light snow over parts of the Upper Midwest on Thursday; Light to moderate snow over the Great Lakes/Ohio Valley and light snow over parts of the Northeast on Friday... ...There is a Critical Risk of fire weather over parts of Southern California on Thursday..

(NWS)

KEY DATES IN JANUARY

9: Day of Mourning for the late former President Jimmy Carter
10: Bureau of Labor Statistics December employment situation report
10: USDA Annual Summary, WASDE, Crop Production, Grain Stocks, Winter Wheat/Canola Seedings
15: BLS consumer price index report (inflation)
15: Quarterly estimated taxes due
15: Last day to enroll in a 2025 health plan via HealthCare.gov
20: Inauguration Day
20: College football national championship
24: USDA Food Price Outlook
26: AFC and NFC football championships
27: (tentative) First day IRS will begin accepting 2024 federal tax returns
28: Florida’s 1st and 6th special primaries
31: Employers & financial institutions should send out W-2 & 1099 tax forms
31: Federal Open Market Committee meets
31: USDA Cattle