United States of America Scoping: Bacon-flation 🥓

Bacon-flation 🥓

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So, shutdown or no shutdown? The betting window is closing rapidly. Let's get into it.

By Allison Morrow

⚓ BREAKING POINT

As bad as the supply chain crisis is, there's a reason you're still getting your monthly Amazon dog food subscription, and that couch that you ordered back in May arrived in September and not…2023.

Deliveries are still coming to your door thanks to the millions of seafarers, truck drivers and airline workers who are quite literally keeping global commerce afloat. While many of us (myself included) have spent the pandemic working in our PJs at home, these workers have crossed land and sea and sky while navigating a complex web of travel restrictions and Covid-19 testing protocols that vary country to country.

After nearly two years of it, many are reaching their breaking point, my colleague Hanna Ziady writes. If they quit, even in small numbers, the system is so strained you can pretty much forget about Christmas presents till next year.

THE NEWS

In an open letter, shipping industry groups warned of a "global transport system collapse" if governments do not restore freedom of movement to transport workers and give them priority to receive vaccines recognized by the World Health Organization.

"Global supply chains are beginning to buckle as two years' worth of strain on transport workers take their toll," the groups wrote.

The system is already short on workers, they said, and you can expect more to leave in the coming months. Especially those who don't want to risk missing their own Christmas celebrations because they were stuck at sea.

Under current restrictions, many crews who spend weeks at time on a cargo ship haven't been able to take shore leave in over 18 months. There's no global standard for Covid protocols, so transport workers are being repeatedly tested —and in some cases repeatedly vaccinated because not all vaccines are approved in all countries, according to Guy Platten, secretary general of the International Chamber of Shipping.

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🥓 NUMBER OF THE DAY

28%

Time for another key inflation indicator: This time, bacon! The price of America's favorite breakfast pork is up a fat 28% in the past year. And because the US pork supply chain was thoroughly knocked out of whack last year, economists don't expect prices to go back to normal till next summer.

🏦 CHIN UP, JAY

The chairman of the Federal Reserve is having a rough week, even by the standards of the hellish week going down in the dysfunctional world of DC politics.

First, two regional Fed officials announced they were "retiring early" after they were called out for making personal trades that raise serious questions about potential ethics violations.
Then markets had a tantrum over inflation on Tuesday.
The Treasury piled on, announcing the government would run out of money and potentially default on October 18.
Thennnnnn Senator Elizabeth Warren said she won't support his renomination in February. She actually called him a "dangerous man" for being too soft on Wall Street. In front of all of their friends!

And it's only Wednesday.

Of course, Powell doesn't rattle easily. Even when President Trump — the man who appointed him to the Fed job — started heckling him on Twitter, Powell didn't take the bait.

This is a guy who doesn't do drama. He reportedly gets up at 5:15 am, rides his bike, eats healthy and likes to unwind with John le Carré novels.

He's also built up plenty of credit in Washington for acting aggressively at the start of the pandemic to insulate America's financial markets. The Fed's unprecedented intervention may well have staved off a depression or a full-on financial meltdown.

But it's the continuation of the central bank's easy money policy that's got Jay in the crosshairs of some lawmakers. Warren is the highest profile lawmaker yet to stand against Powell, and it's easy to see how some other progressive senators will follow suit, my colleague Matt Egan writes.

"Powell remains the favorite, but his chances have clearly gone from a sure-bet to a lower probability," said Ed Mills, Washington policy analyst at Raymond James.

WHAT ELSE IS GOING ON?

📺 YouTube is cracking down on anti-vaxxers, saying it will remove videos spreading misinformation about any approved vaccine, not only those aimed at preventing Covid-19.

🚗 General Motors CEO Mary Barra will become the first-ever female chair of the Business Roundtable, a powerful CEO alliance, beginning in January.

📱 Well, this is dark: Google Maps is adding wildfire tracker.

🇺🇸 Down to the wire: The final vote on Biden's $1.2 trillion infrastructure bill is slated for Thursday — the same day Congress needs to reach an agreement to avoid a government shutdown. CNN's Politics team has live updates. (Fun quote from a person familiar with the negotiations: "Nobody wants to blink; everyone thinks the other side is about to. Neither is right about that, which puts us in a very bad place." Lol democracy.)

🔌 SHAMELESS PLUG

LAST CHANCE!

On Thursday, September 30, CNN Business presents "Foreseeable Future: Cryptomania."

My colleague Julia Chatterly will be sitting down with Mike Novogratz, the founder and CEO of Galaxy Digital, to discuss all things crypto. Also on deck: a panel discussion with Tavonia Evans (Guapcoin Founder), Hester Peirce (SEC Commissioner) and Sydney Schaub (Gemini Chief Legal Officer). RSVP here!