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    Finance Minister Jeremy Hunt Drops Most of U.K. Tax-Cut Plan

    Jeremy Hunt also put a time limit on energy subsidies, seeking to reassure markets and reduce pressure on Prime Minister Liz Truss.LONDON — Britain’s new chancellor of the Exchequer, Jeremy Hunt, said on Monday that he would reverse virtually all the government’s planned tax cuts, sweeping away Prime Minister Liz Truss’s free-market economic plan in a desperate bid to steady the financial markets and stabilize her government.Mr. Hunt also announced that the government would end its massive state intervention to cap energy prices next April, replacing it with a still-undefined program that he said would promote energy efficiency, but that could increase uncertainty for households facing rising gas and electricity bills.Ms. Truss’s Conservative government had planned to announce the tax and spending details of its fiscal plan on Oct. 31, but with the markets still gyrating, Mr. Hunt rushed forward the schedule. His announcement constituted one of the most dramatic reversals in modern British political history.“A central duty for any government is to do what’s necessary for economic stability,” Mr. Hunt said in a televised statement. “No government can control markets but every government can give certainty about the sustainability of public finances.”Among the new details, Mr. Hunt said the government would shelve a reduction in the basic income tax rate, the centerpiece of a tax-cutting plan that Ms. Truss had promised would reignite Britain’s economic growth. She had earlier scrapped a tax cut for high-income people and announced she would go ahead with a planned increase in corporate taxes.The pound and British government bonds rallied in the run-up to the announcement, suggesting that the news could buy Ms. Truss a few days of breathing space, though her political survival, after only six weeks in office, remained in deep doubt.Mr. Hunt’s hastily scheduled announcement came three days after Ms. Truss ousted his predecessor, Kwasi Kwarteng, and reversed another major tax cut, shredding her agenda and staining her credibility. As Mr. Hunt moved to take control of the economic levers of government, Conservative Party lawmakers were meeting to plot ways to force Ms. Truss out of power.The mechanics of removing Ms. Truss remained murky, with the lawmakers grasping for ways to find a consensus replacement for her that would avoid another full-scale and divisive leadership contest. But many political analysts said her position seemed untenable, given the turmoil of the last three weeks.Mr. Hunt’s statement laid bare a government forced into a humiliating 180-degree turn in its economic policy by an unforgiving market, rebellious Conservative lawmakers, and a wholesale loss of public support.Where Ms. Truss had last summer ruled out any new taxes, her government is now planning to rescind tax cuts for ordinary and high-income people and to impose a tax increase on corporations. Where just last week the prime minister had ruled out reductions in public spending, Mr. Hunt made it clear the government would consider painful spending cuts in an array of public services.The government’s goal is to restore Britain’s credibility in the markets by explaining how it plans to fill an estimated budget hole of 72 billion pounds ($81.2 billion). And Mr. Hunt’s measures go part of the way toward doing that. More

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    After two years of shipping snarls, things are starting to turn around

    After two years of port congestions and container shortages, disruptions are now easing as Chinese exports slow in light of waning demand from Western economies and softer global economic conditions, logistics data shows.
    “The retailers and the bigger buyers or shippers are more cautious about the outlook on demand and are ordering less,” logistics platform Container xChange CEO Christian Roeloffs said in an update on Wednesday. 
    “On the other hand, the congestion is easing with vessel waiting times reducing, ports operating at less capacity, and the container turnaround times decreasing which ultimately, frees up the capacity in the market.”

    Container freight rates, which soared to record prices at the height of the pandemic, have been falling rapidly and container shipments on routes between Asia and the U.S. have also plunged, logistics data shows.
    Anucha Sirivisansuwan | Moment | Getty Images

    After two years of port congestions and container shortages, disruptions are now easing as Chinese exports slow in light of waning demand from Western economies and softer global economic conditions, logistics data shows.
    Container freight rates, which soared to record prices at the height of the pandemic, have been falling rapidly and container shipments on routes between Asia and the U.S. have also plunged, data shows. 

    “The retailers and the bigger buyers or shippers are more cautious about the outlook on demand and are ordering less,” logistics platform Container xChange CEO Christian Roeloffs said in an update on Wednesday.  
    “On the other hand, the congestion is easing with vessel waiting times reducing, ports operating at less capacity, and the container turnaround times decreasing which ultimately, frees up the capacity in the market.”

    Stock picks and investing trends from CNBC Pro:

    The latest Drewry composite World Container Index — a key benchmark for container prices — is $3,689 per 40-foot container. That’s 64% lower than the same time last September after falling 32 weeks in a row, Drewry said in a recent update.  
    The current index is much lower than record-high prices of over $10,000 during the height of the pandemic but still remains 160% higher than pre-pandemic rates of $1,420. 
    According to Drewry, freight rates on major routes have also fallen. Costs for routes like Shanghai-Rotterdam and Shanghai-New York have fallen by up to 13%. 

    The falling freight rates tie in with a “sharp drop” in container shipments that Nomura Bank has observed. 

    Nomura, quoting data from U.S.-based Descartes Datamyne, said container shipments from Asia to the U.S. for all products except rubber products in September are down year on year.
    “We assume that the sharp drop in container shipments largely reflects US retailers stopping orders and reducing inventories due to the risk of an economic slowdown,” Nomura analyst Masaharu Hirokane said in a note on Wednesday, adding that the bank has yet to see signs of a sharp fall in U.S. retail sales.
    Port throughput around the world has also dropped. When Shanghai reopened after its recent lockdowns, port traffic volumes lifted but weren’t enough to offset the “wider downturn in port handling levels,” Drewry said. 

    What’s different now

    In Europe, sliding container prices and rates reflect declining consumer confidence, Container xChange said. 
    “The European market is finding itself flooded with 40-foot high-cube containers. As a result, the region is experiencing a fall in the prices of these boxes,” Container xChange said. 
    The trends in logistics and supply chains from the past two years have reversed, logistics companies said. During that period, container shortages were constant as a result of delays at ports affected by lockdowns and soaring demand.

    In Europe, sliding container prices and rates reflect declining consumer confidence, Container xChange said.
    Nurphoto | Nurphoto | Getty Images

    But now, demand for containers is falling and so are their rates, Seacube Containers chief sales director Danny den Boer said at the Digital Container Summit held earlier this month. 
    Idle time for containers is also on the rise, Sogese CEO Andrea Monti said at the same conference.   
    “Containers are stacking up at a lot of import-led ports. Shippers are giving containers away just because containers are being stuck there,” said Container xChange account manager Gregoire van Strydonck at the conference. 
    India’s Arcon Containers CEO Supal Shah said factories in China have stopped production for the foreseeable future. 
    “We heard four months,” he said at the Digital Container Summit conference.
    “The container depot space is full in China, Europe, India, Singapore and most parts of the world.”

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    Democrats Spent $2 Trillion to Save the Economy. They Don’t Want to Talk About It.

    Polls show voters liked direct payments from President Biden’s 2021 economic rescue bill. But they have become fodder for Republican inflation attacks.In the midst of a critical runoff campaign that would determine control of the Senate, the Rev. Raphael Warnock promised Georgia voters that, if elected, he would help President-elect Biden send checks to people digging out of the pandemic recession.Mr. Warnock won. Democrats delivered payments of up to $1,400 per person.But this year, as Mr. Warnock is locked in a tight re-election campaign, he barely talks about those checks.Democratic candidates in competitive Senate races this fall have spent little time on the trail or the airwaves touting the centerpiece provisions of their party’s $1.9 trillion economic rescue package, which party leaders had hoped would help stave off losses in the House and Senate in midterm elections. In part, that is because the rescue plan has become fodder for Republicans to attack Democrats over rapidly rising prices, accusing them of overstimulating the economy with too much cash.The economic aid, which was intended to help keep families afloat amid the pandemic, included two centerpiece components for households: the direct checks of up to $1,400 for lower- to middle-class individuals and an expanded child tax credit, worth up to $300 per child per month. It was initially seen as Mr. Biden’s signature economic policy achievement, in part because the tax credit dramatically reduced child poverty last year. Polls suggested Americans knew they had received money and why — giving Democrats hope they would be rewarded politically.Liberal activists are particularly troubled that Democratic candidates are not focusing more on the payments to families.“It’s a missed opportunity and a strategic mistake,” said Chris Hughes, a founder of Facebook and a senior fellow at the Institute on Race, Power, and Political Economy at The New School, who is a co-founder of the liberal policy group Economic Security Project Action. “Our public polling and our experience suggest the child tax credit is a sleeper issue that could influence the election, a lot more than a lot of candidates realized.”Celinda Lake, a Democratic pollster who has surveyed voters in detail on the child credit, said data suggest the party’s candidates should be selling Americans on the pieces of Mr. Biden’s policies that helped families cope with rising costs.“We have a narrative on inflation,” Ms. Lake said in an interview. “We just aren’t using it.”Many campaign strategists disagree. They say voters are not responding to messages about pandemic aid. Some Democrats worry that voters have been swayed by the persistent Republican argument that the aid was the driving factor behind rapidly rising prices of food, rent and other daily staples.Economists generally agree that the stimulus spending contributed to accelerating inflation, though they disagree on how much. Biden administration officials and Democratic candidates reject that characterization. When pressed, they defend their emergency spending, saying it has put the United States on stronger footing than other wealthy nations at a time of rapid global inflation.Republicans have spent nearly $150 million on inflation-themed television ads across the country this election cycle, according to data from AdImpact. The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.The Final Stretch: With less than one month until Election Day, Republicans remain favored to take over the House, but momentum in the pitched battle for the Senate has seesawed back and forth.A Surprising Battleground: New York has emerged from a haywire redistricting cycle as perhaps the most consequential congressional battleground in the country. For Democrats, the uncertainty is particularly jarring.Arizona’s Governor’s Race: Democrats are openly expressing their alarm that Katie Hobbs, the party’s nominee for governor in the state, is fumbling a chance to defeat Kari Lake in one of the most closely watched races.Herschel Walker: The Republican Senate nominee in Georgia reportedly paid for an ex-girlfriend’s abortion, but members of his party have learned to tolerate his behavior.In Georgia alone, outside groups have hammered Mr. Warnock with more than $7 million in attack ads mentioning inflation. “Senator Warnock helped fuel the inflation squeeze, voting for nearly $2 trillion in reckless spending,” the group One Nation, which is aligned with Senator Mitch McConnell of Kentucky, the Republican leader, says in an ad that aired in the state in August.Democrats have tried to deflect blame, portraying inflation as the product of global forces like crimped supply chains while touting their efforts to lower the cost of electricity and prescription drugs. They have aired nearly $50 million of their own ads mentioning inflation, often pinning it on corporate profit gouging. “What if I told you shipping container companies have been making record profits while prices have been skyrocketing on you?” Mr. Warnock said in an ad aired earlier this year.Candidates and independent groups that support the stimulus payments have spent just $7 million nationwide on advertisements mentioning the direct checks, the child tax credit or the rescue plan overall, according to data from AdImpact.Far more money has been spent by Democrats on other issues, including $27 million on ads mentioning infrastructure, which was another early economic win for Mr. Biden, and $95 million on ads that mention abortion rights..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.Mr. Warnock has not cited any of the rescue plan’s provisions in his advertisements, focusing instead on issues like personal character, health care and bipartisanship, according to AdImpact data.Senator Raphael Warnock, who is locked in a tight re-election campaign this year, barely mentions the relief checks.Nicole Craine for The New York TimesFor months after the rescue plan’s passage, Democratic leaders were confident that they had solved an economic policy dilemma that has vexed Democrats and Republicans stretching back to the George W. Bush administration: They were giving Americans money, but voters weren’t giving them any credit.Tax cuts and direct spending aid approved by Mr. Bush, President Barack Obama and President Donald J. Trump failed to win over large swaths of voters and spare incumbent parties from large midterm losses. Economists and strategists concluded that was often because Americans had not noticed they had benefited from the policies each president was sure would sway elections.That was not the case with the direct checks and the child tax credit. People noticed them. But they still have not turned into political selling points at a time of rapid inflation.As the November elections approach, most voters appear to be motivated by a long list of other issues, including abortion, crime and a range of economic concerns.Mr. Warnock’s speech last week to a group of Democrats in an unfinished floor of an office space in Dunwoody, a northern Atlanta suburb, underscored that shift in emphasis.He began the policy section of the rally with a quick nod to the child credit, then ticked through a series of provisions from bills that Mr. Biden has signed in the last two years: highways and broadband internet tied to a bipartisan infrastructure law, semiconductor plants spurred by a China competitiveness law, a gun safety law and aid for veterans exposed to toxic burn pits. He lingered on one piece of Mr. Biden’s Inflation Reduction Act: a cap on the cost of insulin for Medicare patients, which Mr. Warnock cast as critical for diabetics in Georgia, particularly in Black communities.The direct payments never came up.When asked by a reporter why he was not campaigning on an issue that had been so central to his election and whether he thought the payments had contributed to inflation, Mr. Warnock deflected.“We in Georgia found ourselves trying to claw back from a historic pandemic, the likes of which we haven’t seen in our lifetime, which created an economic shutdown,” he said. “And now, seeing the economy open up, we’ve experienced major supply chain issues, which have contributed to rising costs.”Direct pandemic payments were begun under Mr. Trump and continued under Mr. Biden, with no serious talk of another round after the ones delivered in the rescue plan. Most Democrats had hoped the one-year, $100 billion child credit in the rescue plan would be made permanent in a new piece of legislation.But the credit expired, largely because Senator Joe Manchin III, Democrat of West Virginia and a key swing vote, opposed its inclusion in what would become the Inflation Reduction Act, citing concerns the additional money would exacerbate inflation.Senator Michael Bennet, Democrat of Colorado, was one of the Senate’s most vocal cheerleaders for that credit and an architect of the version included in the rescue plan. His campaign has aired Spanish-language radio ads on the credit in his re-election campaign, targeting a group his team says is particularly favorable toward it, but no television ads. In an interview last week outside a Denver coffee shop, Mr. Bennet conceded the expiration of the credit has sapped some of its political punch.“It certainly came up when it was here, and it certainly came up when it went away,” he said. “But it’s been some months since that was true. I think, obviously, we’d love to have that right now. Families were getting an average of 450 bucks a month. That would have defrayed a lot of inflation that they’re having to deal with.”Mr. Biden’s advisers say the rescue plan and its components aren’t being deployed on the trail because other issues have overwhelmed them — from Mr. Biden’s long list of economic bills signed into law as well as the Supreme Court decision overturning Roe v. Wade that has galvanized the Democratic base. They acknowledge the political and economic challenge posed by rapid inflation, but say Democratic candidates are doing well to focus on direct responses to it, like the efforts to reduce costs of insulin and other prescription drugs.Ms. Lake, the Democratic pollster, said talking more about the child credit could help re-energize Democratic voters for the midterms. Mr. Warnock’s speech in Dunwoody — an admittedly small sample — suggested otherwise.Mr. Warnock drew cheers from the audience after he called the child tax credit “the single largest tax cut for middle- and working-class families in American history.”But his biggest ovation, by far, came when the economics section of his speech had ended, and Mr. Warnock had moved on to defending abortion rights. More

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    The Rent Revolution Is Coming

    Here’s a list of places you might imagine seeing an argument over housing policy. A city council meeting. A late-night zoning hearing. Maybe a ribbon-cutting to christen a new affordable housing complex.Instead, there was Quinton Lucas, the mayor of Kansas City, Mo., on a stage dressed as the pope with a half-dozen hecklers in yellow T-shirts berating his new housing plan from the audience in front of him. Mr. Lucas had arrived at the outdoor Starlight Theater on a warm August evening for a cameo appearance in a local production of “Sister Act.” Just before he walked onto the stage, the demonstrators, who belonged to a group called KC Tenants, unfurled a banner that read “Mayor Lucas: Developing Displacement.”A pack of uniformed security guards promptly smothered the scene. During the slow procession to the exit gates that followed, members of KC Tenants chanted, “The rent is too damn high!” while the audience tried to focus on the mayor/pope and the dancing nuns.Such is the state of housing in America, where rising costs are flaring into pockets of resistance and rage. Take two-plus years of pandemic-fueled eviction anxiety and spiking home prices, add a growing inflation problem that is being increasingly driven by rising rents, and throw in a long-run affordable housing shortage that cities seem powerless to solve. Add it up and the 44 million U.S. households who rent a home or apartment have many reasons to be unhappy.That unhappiness extends across the economic spectrum. At one end are renters who aspire to buy a home but have had their dreams dashed by high home prices and, now, rising mortgage rates. At the other are low-income tenants who make up the bulk of the 11 million households who spend more than half of their income on rent. In between is a hollowed-out middle class that is steadily losing ground, although not enough to qualify for much sympathy or help.The confluence of all these forces has fueled a swell of tenants’ rights activism that has brought organizing muscle and policies like rent control to cities far beyond the high-cost coasts. Kansas City, Mo., is a leading example. With a population of 500,000, where the avenues are lined with brick buildings and side streets have modest homes with raised porches, the city offers little to suggest a renters’ revolution. Zillow’s home value index puts the typical Kansas City home at $230,000, or more than $100,000 below the national level.But with a steadily expanding economy driven by the logistics and medical industries, Kansas City has seen its rents increase 8.5 percent from a year ago, outpacing the rest of the nation, according to rental search site Apartment List. Over the past decade, Kansas City, like many places, has added a collection of high-end towers and apartments even as its stock of low-income housing has withered. The strain from rising rents, which landlords say they need to cover their costs, is creeping from people working in low-income service professions to middle-income teachers and city workers, part of a festering affordable housing crunch that spreads more widely across the nation each month.KC Tenants is one result. Pairing aggressive protests with traditional lobbying, the group exploded onto the political scene during the pandemic and has since become instrumental in passing tenant-friendly laws like an ordinance that gives renters a lawyer during eviction proceedings. It has also left a trail of embittered opponents who find the group’s tactics, such as protesting outside judges’ homes, ill-suited to what many residents describe as a cordial Midwestern town.Organizers with KC Tenants protesting a new set of housing ordinances during a council meeting at City Hall.Barrett Emke for The New York Times“It’s a transition in politics for us,” said Mayor Lucas, a Democrat, who says he meets with the leaders of KC Tenants regularly, despite being a frequent subject of the group’s protests. “There is a new, almost tougher political edge, in the sense that there are people who are organizing and intrigued by politics and are very angry and are not coming out of the same institutions that built a lot of us.”America’s housing problem was simmering long before the pandemic, and tenant organizing is a well-established trade. What’s changed is the depth of the housing shortage and the suddenness with which Covid-19 and inflation have tipped smaller cities into an affordability crisis. This has opened the aperture for policies once deemed politically impossible, in a wider range of markets.Unlike homeowners, whose budget problems are blunted by a litany of tax breaks and fixed-rate mortgages, renters are mostly unprotected from rapidly rising prices. Once cities around the country passed widespread eviction moratoriums and emergency rent caps that were followed by tens of billions of dollars in pandemic rental assistance, it was only natural for housing activists to push for some of those temporary policies to be made permanent.Politically speaking, inflation has only helped. Nationally, rents are now 20 percent higher than they were in early 2020, creating an opportunity for renter-friendly laws to get baked into long-term policy.“People take for granted that rent is always going to go up,” said Tara Raghuveer, a co-founder of KC Tenants. “There’s so little political imagination about what could be different, and now I think that’s changing.”A hyper-focused worker who blends the rhetoric of a revolutionary with the efficiency of a chief executive, Ms. Raghuveer also directs the Homes Guarantee campaign, which works to create tenant unions around the country. She described KC Tenants as both a local movement and national experiment through which organizing ideas can be test-driven.“I think every national organizer should be accountable to a local base,” she said.During a three-day visit in which I hung around the office and shadowed meetings and protests, Ms. Raghuveer returned repeatedly to an idea that has become a refrain among tenant groups: the hope that growing resentment over housing costs is fostering a broad tenant identity that will inspire a wide range of renters to organize and vote with a shared interest. In the activist nomenclature, this is known as “tenants as a class.”That’s an audacious goal in a country where homeownership is all but defined as success. An irony of the nation’s housing problem is that it’s become so pervasive that it has created as many opportunities for cleavage as it has for coalition. Need has grown faster than resources, making housing policy a prism through which a stealth conflict between the middle class and the truly poor is filtered.Even so, what’s clear is that in Kansas City and elsewhere tenants are becoming a real constituency. That’s not something you could say as recently as a few years ago. But a few years ago the rent wasn’t quite so high.Getting the DataTara Raghuveer, KC Tenants’ founding director, working outside the East Patrol Division Station where the group camped out waiting for Board President Tiana Caldwell to be released on bond.Barrett Emke for The New York TimesKC Tenants began, more or less, as homework.Ms. Raghuveer, now 30, was in her final year at Harvard when she settled on a topic for her senior thesis: evictions, inspired by the work of Matthew Desmond, the Princeton sociologist and author of “Evicted,” the 2016 book that explored the housing struggles of low-income families in Milwaukee. She’d grown up in Mission Woods, a suburb on the Kansas side of the Kansas-Missouri border, and conducted her thesis research in the Kansas City metropolitan area.After college, Ms. Raghuveer was invited to talk about her thesis in policy forums, and that’s how she met the women who would help her start KC Tenants.One was Tiana Caldwell, whose husband contacted Ms. Raghuveer as the family bounced between hotels after being evicted from their apartment amid Ms. Caldwell’s treatment for ovarian cancer. Another was Diane Charity, a 72-year-old retiree who rents a two-bedroom townhouse and who met Ms. Raghuveer during a presentation at the local health department.“She gave all these stats and I said, ‘I need to talk to you,’” Ms. Charity said. “We’ve been telling these stories forever, and no one’s listening. But she had what it took — I’m sorry to say this, but to talk to white people and people in power, you got to have data.”KC Tenants was founded in 2019 by a group that included Ms. Charity and Ms. Caldwell. A local union allowed the group to work out of its offices, and a folding table there formed KC Tenants’ first headquarters. That’s where Ms. Raghuveer was working when the Covid-19 pandemic erupted.‘Shut it down’For all the uncertainty that the pandemic wreaked on markets and the economy, there seemed to be at least one prediction that housing experts and policymakers agreed on in its early days: a “tsunami of evictions” was imminent.Nearly three years later, that prediction has yet to materialize. The economic recovery from the immediate shock of Covid was faster than many expected, and in the meantime trillions of dollars in federal stimulus spending and eviction moratoriums helped plug the gaps. Still, the attention that Covid brought to housing insecurity is poised to be a lasting remnant of the pandemic economy, even after rental assistance wanes and the patchwork of moratoriums expire.It shows up in cities like Los Angeles, where the City Council this month voted to expand tenant protections for renters in the same meeting that it voted to end its Covid-related eviction moratorium. Last year, voters in St. Paul, Minn., passed a new rent control ordinance. The uneven rollout of federal rental aid, in which bureaucratic hurdles frequently prevented cities and states from getting money to tenants, inspired a number of cities to experiment with cash assistance programs that are now becoming a permanent feature of the policy landscape.For organizers, the pandemic provided an almost perfect opportunity to build their ranks. Here was a crisis that affected large swaths of renters pretty much all at once, in contrast to the normal state of affairs in which tenants who are falling behind or evicted are dealing with problems that seem unique to their lives and mostly handled in private. “Embedded in tenant organizing are deeper questions about the structure of our political economy,” said Jamila Michener, a professor of government and public policy at Cornell who has studied tenant organizations. “It’s getting people to think about not just how you can leverage power against your landlord or get the city council to help you, but also questions like: Why does the economy seem to be rigged against people like you so systematically?”In 2019, Jenay Manley was making $11.50 an hour at a QuikTrip gas station when a paperwork error cost her a voucher that covered a portion of her rent through the federal Section 8 housing program. To help make up for the loss, she allowed a former boyfriend who she said was abusive to move back in. One night, she texted a friend who had been displaced by a rent hike to ask what she could do. The friend, Maya Neal, suggested that she go to a KC Tenants meeting. There, she heard Ms. Caldwell tell her story of being evicted during cancer treatment.Maya NealBarrett Emke for The New York Times“It was just this clarifying moment of, We’re not OK. People are not OK,” she said. “We are struggling, and no one knows. And the more of us who tell our story, the more of us realize our story is worth being told.”A few months later, after leaving the night shift at QuikTrip, Ms. Manley, along with her sister and three children, stationed herself along Interstate 70, next to a minivan with “#CancelRent” scrawled across a window in purple marker. She was there to protest the burden of Covid on tenants in a socially distant manner.In July 2020, KC Tenants protested the end of a local eviction moratorium and tried to halt eviction proceedings by logging onto virtual court hearings and continuously reading a script — “Every eviction is an act of violence” — so that judges and lawyers couldn’t hear one another. By October, the group’s members were chaining themselves to the courthouse doors.They also started targeting lawyers and public officials, including through a rally in the front yard of Judge J. Dale Youngs, who oversees the circuit court in Jackson County. Mr. Youngs said in an interview that at one point the group spray-painted “FU” onto a flagstone path in his yard. He added that he did not know if “FU” was the completed thought or if the vandal was interrupted before the message could be finished.“I’m a pretty big supporter of the First Amendment, and I’m the first to admit democracy is messy,” Judge Youngs said. “But when you go protest in front of someone’s private home, I think the only reason you’re doing that is to let them know that you know where they live. And there’s something kind of inherently not cool about that.”Locals argue over how effective these protests were, but there’s little doubt that housing pressures brought on by Covid helped open the door to policies that otherwise would never have happened. The biggest, by far, is a new right-to-counsel ordinance in which the city will pay for a lawyer to represent any tenant facing eviction. The measure was drafted by KC Tenants, according to Andrea Bough, the City Council member who introduced it.In an interview in her office, Ms. Bough expressed the same anxiety I had heard all around town, including from the mayor and from low-income tenants: even though Kansas City remains inexpensive compared with larger cities, it is spiraling into the same affordability problems as those places and is no more equipped to solve them.“We aren’t to the point of a widespread housing crisis, but if we don’t do something we’re going to get there,” she said.The right-to-counsel law, which went into effect this year, has already changed the landscape. Julie Anderson, a Kansas City attorney who represents a number of local landlords, said that the cost of an eviction had risen by a factor of five and that the process now took from three months to a year, up from a month or so. Her clients are unhappy, but it’s also been good for business: Ms. Anderson said she had hired two lawyers and three paralegals to handle the extra work.“That part of my practice was very uneventful,” she said. “Now, post-Covid, almost everything is contested.”The Tenant ClassBarrett Emke for The New York TimesKC Tenants now has 4,300 members, seven full-time employees and piles of yellow T-shirts ready for distribution. The nonprofit organization operates out of a second-floor office inside a Methodist church, and is funded through a mix of individual donors and foundations. It has a $450,000 annual budget.This month, members launched a separate entity, KC Tenants Power, that is registered as a 501(c)(4) and has more leeway to engage directly in politics. Like everyone else these days, Ms. Raghuveer seems to spend most of her time on video calls, talking in front of a banner that reads, “Eviction Kills.”Tenant-organizing has been central to any number of social justice and civil rights movements stretching from the turn of the twentieth century, but, in recent decades, it has rarely been successful outside localized pockets. An enduring issue in organizing tenants as a class is that homeownership is still most families’ goal.Covid has illustrated this. Once remote workers could live anywhere they wanted, many renters left big, expensive markets for smaller cities where they could afford a home.Ms. Raghuveer believes in a growing tenant identity, but she has no delusions. She doesn’t imagine that one day she’ll lead a protest march in which public-housing tenants lock arms with residents of luxe buildings, where one-bedrooms start at $3,000 a month and include access to rooftop pools and private dog parks. What she does believe is that housing instability, however it is experienced, can be a catalyst for a broader coalition that operates across traditional political lines.She pointed to a recent effort to help a local trailer park where the county was evicting residents in order to build a jail on the property. This would normally have been an organizing no-brainer. However, during a meeting, several members of KC Tenants said they were reluctant to get involved because a number of the cars and trailers in the park had Trump stickers and flags on them. Other members responded by recalling that the group’s community agreements, which they read before every meeting, declare that KC Tenants does not make assumptions about anyone.So a group went to knock on doors.“This little skinny gal comes to my door, and I’m like, ‘Who in the hell is this?’” said Urban Schaefer, a resident of the park who helped organize it after meeting Ms. Raghuveer. “A lot of people were skeptical about it.”In the end, about a dozen members of KC Tenants worked with residents to demand a better deal. And the county sweetened its offer: six months of free rent and at least $10,000 in relocation costs.Inventing HopeAn organizing meeting for tenants Gabriel Tower Apartments, in Kansas City.Barrett Emke for The New York TimesThere weren’t any MAGA hats at the KC Tenants meetings I went to, but it was a generally diverse group with a range of motivations for being there. There were Black women, who are among the people most affected by eviction, both locally and nationally. There were white men, who began whatever they were about to say with acknowledgments of privilege. And there was a child of the housing bust, whose faith in the American dream was shattered when his family was foreclosed on and a chain of moves followed.During a meeting of a tenants’ union in the gentrifying Midtown neighborhood, I met an economics professor who had come because she had wanted to better understand the housing problem. Later, at meeting in a Section 8 building on the other side of Troost Avenue — long the city’s dividing line between its Black and white residents — several attendees sat in wheelchairs, and one said he’d recently slept under a bridge.Small frictions abound. At one recent meeting, a young man talked about the “carceral state,” only to have Ms. Charity reply: “Are you talking about jail?”This diversity is, unintentionally, the policy conundrum that Mayor Lucas and other officials are grappling with as more people look to the government for help with housing.Around the country, developers have spent the past decade building mostly higher-end units. Eli Ungar, the founder of Mac Properties, which is based in Englewood, N.J., and owns about 9,000 apartments, including 2,000 in Kansas City, bluntly laid out the economics. The cost of development is now so high that the most reliable way to make money is by building apartments for tenants who regard the cost of rent as “a matter of curiosity.”This leaves two groups behind.“The folks who think of themselves as middle class and are feeling increased worry and pressure as rents go up faster than incomes, and the people who are most vulnerable in our society and desperately need housing that no developer can provide without a massive subsidy,” Mr. Ungar said. “As a citizen, I would be entirely comfortable with my taxes being higher to provide well-maintained housing for those who can’t afford it. The question is how that is achieved, and market-rate developers are not unilaterally going to say, ‘I will reduce my income to achieve this goal.’”Caught in the teeth of a housing problem that is growing faster than local budgets, public officials inevitably try to solve both problems at once, pitting the middle class against families who live on minimum wage or fixed incomes. This was the crux of the “Sister Act” protest.Mayor Quinton Lucas, in Kansas City, last year.Chase Castor for The New York TimesAs part of a new housing plan, Mayor Lucas had proposed a $50 million bond issue to fund low-income housing, but at the same time he wanted to loosen the city’s regulations for apartment projects that receive tax breaks through a program designed to create affordable housing in market-rate projects. The shift would allow developers to substitute middle-income units for those reserved for families in the lowest income brackets.KC Tenants framed the change as selling out families closest to the edge. The mayor’s retort was that the previous iteration of the program had resulted in no new units for anyone, and his hope was that the revisions would push developers to build middle-income housing, which the city needs as well.In the interview, he cast himself as a leader trying to navigate a difficult problem in world of limited resources.“We don’t have a Scandinavian tax structure,” he said. “Maybe we can get to it, but I don’t know that it starts in Kansas City.”Two days after the “Sister Act” protest, when the City Council held its vote on the plan, the chambers were packed with yellow T-shirts. After a 9-to-4 vote in favor of the new policy, Ms. Neal, an early KC Tenants member, yelled, “How dare you!” Security hauled her out with her arms behind her back in a scene that members’ cellphones captured from every conceivable angle.Ms. Neal being escorted out of the council meeting at City Hall.Barrett Emke for The New York TimesWhen Ms. Neal was gone, Ms. Caldwell, the once-evicted tenant whose cancer is now in remission, continued the chant. “Not another penny for the slumlords!” she shouted. She was removed just as fast, only instead of getting booted to an outdoor bench, like the one where Ms. Neal sat after she’d left the building, Ms. Caldwell was arrested and taken to a local police station.An hour later, the lawn outside the station was crowded with yellow shirts. Members of KC Tenants lay on the grass typing on laptops and eating pizza. A slice was waiting for Ms. Caldwell when she emerged a short time later to cheers.“I’m feeling great,” she said to the crowd, as her 15-year-old son joined her. “I’m doing this so that my baby will never have to.”After a chant of “Tiana, we got your back!” a small group that included Ms. Caldwell and Ms. Raghuveer went to a wine bar to relax. The bar was closing, but Ms. Raghuveer said she’d called the owner, who’d promised to keep it open for them. She added that he was a renter. More

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    With So Much Riding on the Fed’s Moves, It’s Hard to Know How to Invest

    Where the markets go from here depends on whether and how deftly the Federal Reserve pivots from its hawkish stance.Making money was easy for investors when they could still plausibly believe that the Federal Reserve might back down on its aggressive campaign to subdue inflation at any cost. But harsh words from the Fed chairman, Jerome H. Powell, backed by a string of large interest rate increases, finally convinced markets that the central bank meant business, sending stock and bond prices tumbling.A nervous confidence returned as October began, with stocks experiencing a big two-day rally, but then prices sank anew. Investors at first seemed more confident that the Fed would reverse course, but anxiety returned as they worried about how much damage would be inflicted before that happened. Where the markets go from here, and how to position an investment portfolio, depends on whether and how deftly the Fed changes its strategy.“A crescendo of factors is coming together that makes me think we’re going to have another few weeks of pain before the Fed capitulates,” said Marko Papic, chief strategist at the Clocktower Group.Mr. Papic thinks a dovish turn may come soon, as the Fed signals that it would settle for inflation two or three percentage points above its 2 percent target.Others think more pain lies ahead, maybe a lot more. A prerequisite for a pivot might be a “credit event,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies, meaning a default by a large investment firm or corporate or government borrower, often with severe consequences. Mutual FundsA glance at mutual fund performance in the third quarter. More

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    Apple Store in Oklahoma City Becomes Second to Unionize

    Workers said pay was adequate and benefits were good, but complained that managers’ practices often seemed arbitrary.Apple employees at a store in Oklahoma City have voted to unionize, becoming the second of the company’s roughly 270 U.S. retail stores to do so.The result, announced by the National Labor Relations Board on Friday night, suggests that an initial victory by a union at a store in Towson, Md., in June was not an isolated development in an organizing campaign that dates back to last year.According to the labor board, 56 employees voted in favor of the union and 32 voted against. The workers will be represented by the Communications Workers of America, which has members at AT&T Mobility, Verizon and media companies like The New York Times, and has sought to represent tech-industry workers in recent years.Sara Steffens, the union’s secretary-treasurer, said in a statement that workers at the store, known as the Penn Square location, had faced an aggressive anti-union campaign, but she predicted that “Apple retail workers across the country will continue to organize, especially after this momentous victory.”Apple said in a statement that “we believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams.”More on Big TechInside Meta’s Struggles: After a rocky year, employees at Meta are expressing skepticism, confusion and frustration over Mark Zuckerberg’s vision for the metaverse.A Deal for Twitter?: In a surprise move, Elon Musk has offered to acquire Twitter at his original price of $44 billion, which could bring to an end the acrimonious legal fight between the billionaire and the company.Hiring Freezes: Amazon is halting corporate hiring in its retail business for the rest of the year, joining Meta as the latest tech companies to pull back amid the economic uncertainty.TikTok Nears Deal with U.S.: The Biden administration and the Chinese-owned video app have drafted a preliminary agreement to resolve national security concerns over the platform, but hurdles remain over the terms.In interviews, employees at the store said that they received solid benefits, like health care, stock grants and paid family leave, and that their pay had improved over the past several months. The company recently raised the minimum starting wage at its stores to $22 an hour and said it had increased starting wages by 45 percent in the United States since 2018.But workers complained that supervisors’ decisions about hiring, pay and job assignments were often opaque and said a union would bring greater transparency to their store.Leigha Briscoe, an employee involved in the organizing who works in sales, said employees were given very different tasks during the first year of the pandemic, when they often worked from home, with little explanation for the disparities.“Some people were at home making posters, doing drawing projects, and others were on the phone taking calls eight hours a day,” Ms. Briscoe said. “There was a lack of clarity as to what the plan was.”Workers also cited confusion over how to earn promotions at the store.“Some people have been in their current roles for years trying to get promoted and are not really getting anywhere, but whenever they get feedback on an interview for a promotion what they get is very subjective goals,” said Michael Forsythe, another employee involved in the organizing, who helps oversee the repair room at the store.Mr. Forsythe said workers were sometimes told to work on their “customer focus,” but were not given more concrete suggestions like “I want you to have a three-week average of 80 percent customer satisfaction score.”Mr. Forsythe said the idea of unionizing first occurred to him late last year, after employees across the company had begun to protest management’s plans to bring them back to the office. The protest ballooned into a broader campaign, known as #AppleToo, that sought to highlight a variety of workplace problems, including harassment and pay disparities, and caught Mr. Forsythe’s attention.In April, a store in Atlanta filed a petition for a union election, and Mr. Forsythe and other employees at the Oklahoma City store began to discuss unionization.The Atlanta store later withdrew its petition, as the company announced a raise and highlighted the benefits it offered and the potential costs of unionizing, denting support for the union.But by then, the Oklahoma City store had formed an organizing committee and more employees were expressing interest in a union. The Oklahoma City workers filed their petition in early September.Employees said supervisors had responded to their campaign by holding round-table discussions and one-on-one conversations in which they emphasized the downsides of a union, including the dues that workers would have to pay and the possibility that they could lose benefits during the bargaining process. Supervisors also said having a union would make it harder to change workplace arrangements when they were in need of updating, like during the pandemic, according to these employees.Workers at the Oklahoma City store said their market leader, a manager who oversees several locations, was in their store regularly during the campaign, even though they would typically see him no more than a few times a year.Patrick Hart, an employee at the store who helps customers resolve issues with products, said the impact of the company’s response was limited because many employees did their own research about how joining a union would affect them.“We are all extremely educated people — Apple hires a certain kind of person,” Mr. Hart said. “We know how to look into things.” More

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    Biden Tries to Reassure Voters on Health Care Costs Before Election

    At an event in Southern California, the president says his administration is working to keep costs down and warns that Republicans will drive prices higher if they gain power.LOS ANGELES — President Biden on Friday tried to reassure Americans stung by high inflation that his administration was working to keep health care costs down, promising a community college audience in Southern California that he was committed to doing even more.But his remarks in Irvine, Calif. — the first of two West Coast speeches devoted to health care costs — come just days after government data revealed that overall inflation remains high as voters prepare to go to the polls for midterm elections early next month.Surveys show that Americans are deeply frustrated by the impact of sharply higher prices on their pocketbooks. They are expected to rebuke the president and his party in the elections, with most analysts predicting that Democrats will lose control of one or both chambers in Congress.Speaking to a friendly audience, Mr. Biden argued that Republicans would drive prices higher if they gained power. He noted their opposition to his efforts to allow Medicare to negotiate drug prices, which he said would force prices down for medication for millions of seniors. And he said Democrats had pushed through price caps on critical drugs like insulin.“If Republicans in Congress have their way, it’s going to mean the power we just gave Medicare to negotiate lower prescription drug prices and other costs over time goes away — gone,” Mr. Biden said, standing in front of signs that said “Lowering Costs for American Families.” “Two-thousand-dollar cap on prescription drugs goes away — gone. The $35 month cap on insulin for Medicare is gone.”The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.The Final Stretch: With less than one month until Election Day, Republicans remain favored to take over the House, but momentum in the pitched battle for the Senate has seesawed back and forth.A Surprising Battleground: New York has emerged from a haywire redistricting cycle as perhaps the most consequential congressional battleground in the country. For Democrats, the uncertainty is particularly jarring.Arizona’s Governor’s Race: Democrats are openly expressing their alarm that Katie Hobbs, the party’s nominee for governor in the state, is fumbling a chance to defeat Kari Lake in one of the most closely watched races.Herschel Walker: The Republican Senate nominee in Georgia reportedly paid for an ex-girlfriend’s abortion, but members of his party have learned to tolerate his behavior.Mr. Biden’s three-state, four-day trip is also intended to boost the fortunes of Democratic candidates by using the presidential bully pulpit to highlight the party’s accomplishments. On Wednesday in Colorado, he stood next to Michael Bennet, one of the state’s two Democratic senators, to announce a new national monument — a key campaign promise for the embattled lawmaker.In Los Angeles on Thursday, Mr. Biden hailed the use of money from his infrastructure legislation to help complete a new subway line. During his remarks, he made certain to single out Representative Karen Bass, a Democrat who had fought for a provision that directs jobs on the project to local workers.“Local workers can be first in line for these jobs thanks to Karen,” Mr. Biden said. “I really mean it, Karen. Thank you very much.”At the community college in Irvine, Mr. Biden focused his attention on health care — and on Representative Katie Porter, a two-term Democrat running for re-election in a key swing district in Orange County.Ms. Porter, who is facing Scott Baugh, a Republican former state assemblyman, pushed for the drug pricing measure. At the event on Friday, Mr. Biden singled her out, crediting the success of Democratic legislation to her efforts to fight on behalf of her constituents..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.“That’s why Katie’s leadership and the work of the Democrats in Congress was so consequential,” he said. “Katie, I’m not just being nice because I’m in your district. It happens to be true. No, no. I mean, you’re a fighter. You’re decent. You’re honorable and everybody respects you.”Friday’s event at the Irvine Valley Community College was an official one, not a campaign rally. But Ms. Porter used her time at the podium to assail Republicans.“Every single Republican in Washington voted against patients, against families and against taxpayers,” she said. “In the Senate, Republican politicians voted to limit how much Americans can save on prescription drugs and to prevent all patients from getting insulin. And House Republican Leader Kevin McCarthy has vowed that next term it’s his priority to return Big Pharma its unchecked power to charge patients whatever it wants.”She called that a “slap in the face” to the Californians she represents.Republicans sought to portray the president’s efforts to bolster candidates’ prospects as in vain. “Joe Biden is the last person Democrat candidates want to see on the campaign trail,” Michael McAdams, the communications director for the National Republican Campaign Committee, said after the event, noting reports that Democrats recently shifted money away from some California districts to candidates need help more.“His policies are so unpopular House Democrats are being forced to abandon spending in California districts he won by double-digits,” Mr. McAdams said.Friday evening, Mr. Biden was scheduled to fly to Portland, Ore., a liberal community where the Democratic Party would not normally need the help of the sitting president. But Mr. Biden is hoping to help boost the fortunes of Tina Kotek, the Democratic candidate for governor.Although the state has not elected a Republican leader in decades, polls suggest that Ms. Kotek is in a tight, three-way race with Christine Drazan, the Republican candidate, and Betsy Johnson, a former Democrat who is being financed by Phil Knight, the co-founder of Nike. The White House is hoping that a visit by Mr. Biden will help underscore the party’s commitment to her.Republicans predicted that the president’s trip will not prevent their party from grabbing the top electoral prize in the state.“Joe Biden’s disastrous policies continue to hurt Oregon families, and there has been no bigger fan of his out-of-touch approach,” said Kaitlin Price, a spokeswoman for the Republican Governors Association, citing Ms. Kotek, Ms. Johnson and Kate Brown, the state’s current Democratic governor.“This last-ditch effort from national Democrats is proof of their hysteria as they watch Christine Drazan take hold of once deep-blue Oregon that is desperate for change,” Ms. Price said. More

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    Lessons From Liz Truss’s Handling of U.K. Inflation

    The sharp policy U-turn by Liz Truss, Britain’s prime minister, reveals the perils of taking the wrong path in the fight against scalding inflation.Government leaders in the West are struggling with rising inflation, slowing growth, and anxious electorates worried about winter and high energy bills. But Liz Truss, Britain’s prime minister, is the only one who devised an economic plan that unnerved financial markets, drew the ire of global leaders and the public and undermined her political standing.On Friday, battered by savage criticism, she retreated. Ms. Truss fired her top finance official, Kwasi Kwarteng, for creating precisely the package of unfunded tax cuts, billion-dollar spending programs and deregulation that she had asked for.She reinstated a scheduled increase in corporate taxes to 25 percent from 19 percent, a rise she had previously opposed. That announcement came on top of backtracking last week on her proposal to eliminate the top 45 percent income tax on the highest earners. The prime minister, in office a little over five weeks, also promised that spending would grow less rapidly than proposed, although no specifics were offered.The drama is still playing out, and it’s unclear if the Truss government will survive.In the United States, President Biden, while waging his own political battles over gas prices and inflation, has not proposed anything like the kind of policies that Ms. Truss’s government attempted, nor have any other leaders in Europe.Still, for European governments whose economies are suffering greatly from shocks and energy price surges caused by Russia’s war in Ukraine, there are timely lessons from the debacle playing out in London.One of the strongest was delivered early on by the International Monetary Fund: Don’t undermine your own central bankers. The I.M.F., which usually reserves such scoldings for developing nations, on Thursday doubled down on its message. “Don’t prolong the pain,” Kristalina Georgieva, the managing director, admonished.How to blunt the impact of inflation on the most vulnerable without further stoking inflation is the dilemma that every government is confronting.The Bank of England in London has aggressively tried to slow the sharp rise in prices by slowing the British economy.Alberto Pezzali/Associated Press“That is the question of the hour,” said Eswar Prasad, an economist at Cornell University who was attending the annual meetings of the World Bank and I.M.F. in Washington this week.Tension between the fiscal spending policies proposed by a government and the monetary policies controlled by central banks is not unusual. At the moment, though, central bankers are engaged in delicate policy maneuvers in the fight against a level of inflation not seen in decades. With the rate in Britain nearing 10 percent, the Bank of England has moved aggressively to slow down climbing prices through a series of interest rate increases aimed at crimping consumer and business spending.Any expansion of government spending is going to interfere with that aim to some degree, but Ms. Truss’s plan was far too big and too ill defined, Mr. Prasad said.“Measures to help households hit hard by energy increases, by themselves, would not have created that much of a stir,” he said. Many other countries have proposed exactly that. And the European Union has proposed a windfall tax on energy profits to help finance those subsidies.Ms. Truss, instead of coming up with a way to pay for energy assistance, pushed to eliminate a corporate tax increase and cut income taxes for the wealthiest segment of the population. The result was a reduction in government revenue and a ballooning of Britain’s debt.“Overall, the package did not have much clarity in terms of how it would support the economy in the short run without raising inflation,” Mr. Prasad said.By contrast, Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, cited the way governments and central banks worked in tandem when the pandemic struck in 2020 to keep economies from collapsing, issuing vast amounts of public debt.“Central banks printed every single dollar, euro and pound that governments spent” to support households and businesses because of the Covid crisis, Mr. Vistesen said. But now the circumstances have changed, and inflation is setting economies aflame.The actions of the Federal Reserve in the United States illustrate the switch central banks have made: In the harrowing early weeks of the global outbreak of the coronavirus, the Fed embarked on an extraordinary program to stimulate the economy and stabilize markets. This year, the Fed has been swiftly raising interest rates in a bid to slow growth.Both the United States and eurozone countries have somewhat more wiggle room than Britain, because the dollar and the euro are much more widely used around the world as currencies held in reserve than the British pound.Kwasi Kwarteng, Britain’s former chancellor of the Exchequer, left 11 Downing Street after Ms. Truss fired him on Friday.Kirsty Wigglesworth/Associated PressEven so, European governments can help households and businesses get through an energy crisis, Mr. Vistesen said, but they can’t embark on an open-ended spending spree.They also need to take account of what is happening in other economies. The richest countries that make up the Group of 7 are essentially part of the same “monetary and fiscal convoy,” said Will Hutton, president of the Academy of Social Sciences. By championing a Thatcher-era blend of steep tax cuts and deregulation, he said, the Truss government strayed too far from the rest of the flotilla and the economic mainstream.The adherence to 1980s-era trickle-down verities also revealed the risks of sticking with outdated policies in the face of changing circumstances, said Diane Coyle, a ​​public policy professor at the University of Cambridge.“The situation in 1979 was very different,” Ms. Coyle said. “There were sclerotic high taxes and an overregulated economy, but not anymore.” Today, taxes in Britain are lower, and the economy is less regulated than the average member of the Organization for Economic Cooperation and Development, a club of 38 major economies.“The character of the economy has changed,” she said. “Public investment in research and skills are more important.”In that sense, what was missing from Ms. Truss’s economic plan was as important as what was included. And what Britain is lacking, said Mariana Mazzucato, an economist at University College London, is a visionary public investment program like the trillion-dollar climate and digitalization plans adopted by the European Union or the climate and infrastructure program in the United States.A rate of Inflation nearing 10 percent in Britain has affected the price of groceries and how people spend their money.Alex Ingram for The New York Times“If you don’t have a growth plan, an industrial strategy innovation policy,” Ms. Mazzucato said, “then your economy won’t expand.”Both Ms. Mazzucato and Ms. Coyle emphasized that Britain had some specific economic handicaps that predated the Truss administration, including the 2016 vote to exit the European Union, a stubborn lack of productivity, anemic business investment, and lagging research and development.Still, Ms. Coyle offered some advice that referred pointedly to Ms. Truss. “I think the main lesson is: Don’t shoot yourself in the foot.” More