Business

(WASHINGTON) — U.S. hiring slowed in October, but fallout from hurricanes and labor strikes likely caused an undercount of the nation’s workers.

A fresh jobs report marked the final piece of major economic data before Election Day. However, the data offers little more than a blurry snapshot of the U.S. economy due to the one-off disruptions last month.

Employers added 12,000 workers last month, falling short of economist expectations of 90,000 additional jobs, U.S. Bureau of Labor Statistics data on Friday showed. The unemployment rate stands at 4.1%, which matches the previous month’s level and remains historically low.

The hiring in October amounted to a sharp slowdown from 254,000 jobs added in September, though it should be interpreted with a significant dose of caution, experts told ABC News prior to the data release.

“Workers who weren’t paid during the survey period due to work disruptions won’t be counted as employed, and workers and businesses may be too busy dealing with the aftermath of the storms to respond to surveys,” Martha Gimbel, executive director of the Budget Lab at Yale University and former director of economic research at Indeed, told ABC News in a statement.

Hurricane Milton made landfall in Florida as a Category 3 hurricane on Oct. 9. It ultimately left millions without power and much of the state’s gas stations without fuel. In late September, Hurricane Helene made landfall in Florida, prompting recovery efforts that have continued for weeks afterward.

Additionally, roughly 33,000 Boeing workers walked off the job in mid-September, an action that’s expected to manifest as missing jobs for the first time on the October report.

In all, the combination of hurricanes and work stoppages is estimated to have pushed the level of hiring 50,000 jobs lower than where it otherwise would have stood, Bank of America Global Research said in a note to clients this week.

“This probably weighed on payrolls across the board, especially leisure and hospitality,” Bank of America Global Research said, pointing to Hurricane Milton. “There was also likely a minor drag from Helene,” the bank added.

Despite an overall slowdown this year, the job market has proven resilient. Hiring has continued at a solid pace; meanwhile, the unemployment rate has climbed but remains near a 50-year low.

The latest hiring data arrived at the end of a week in which new releases showed an economy growing at a robust pace while inflation returns to normal levels.

U.S. GDP grew at a 2.8% annualized rate over three months ending in September, U.S. Bureau of Economic Analysis data on Wednesday showed. That figure fell slightly below economists’ expectations, but demonstrated brisk growth that was propelled by resilient consumer spending.

On Thursday, the Federal Reserve’s preferred inflation gauge showed that prices rose 2.1% over the year ending in September. Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.

The jobs report is set to arrive four days before Election Day. It also marks the last piece of significant economic data before the Fed announces its next interest rate decision on Nov. 7.

The Fed is expected to cut interest rates by a quarter of a percentage point, according to the CME FedWatch Tool, a measure of market sentiment.

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(NEW YORK) — The U.S. economy grew at a robust pace over three months ending in September, slowing slightly from the previous quarter but continuing to dispel any concern about a possible slowdown. The fresh report marks one of the last major pieces of economic data before the presidential election.

U.S. GDP grew at a 2.8% annualized rate over three months ending in September. That figure fell slightly below economists’ expectations.

Economic growth was fueled by surge in consume spending, an uptick in exports and strong federal government spending, the U.S. Bureau of Economic Analysis said.

The new data arrived weeks after the Federal Reserve cut its benchmark interest rate a half of a percentage point. The landmark decision dialed back a years-long fight against inflation and offered relief for borrowers saddled with high costs.

Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.

Meanwhile, the labor market has proven resilient. Employers hired 254,000 workers in September, far exceeding economist expectations of 150,000 jobs added, U.S. Bureau of Labor Statistics data showed. The unemployment rate ticked down to 4.1%, hovering near a 50-year low.

This is a developing story. Please check back for updates.

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(NEW YORK) — A newly filed lawsuit has accused Subway of “unfair and deceptive trade practices” and selling its steak-and-cheese sandwiches based on “false and misleading advertisements,” that the lawsuit claims show customers getting at least three times more meat than is actually in the product.

The class-action complaint against Subway was filed on Monday in the United States District Court for the Eastern District of New York by plaintiff Anna Tollison, accusing Subway of using “photographs in its advertisements that make it appear that the Steak & Cheese sandwich contains at least 200% more meat than the actual sandwiches that customers receive,” according to the lawsuit.

“Subway’s advertisements for the Product are unfair and financially damaging to consumers as they are receiving a product that is materially lower in value than what is being represented,” the lawsuit says. “Subway actions are especially concerning now that inflation, food, and meat prices are very high and many consumers, especially lower income consumers, are struggling financially.”

The lawsuit also says that Subway’s promise of a portion that is larger is “causing consumers to come to, or order from, Subway restaurants and make purchases that they would not have otherwise made.”

The lawsuit says it stems from Tollison’s visit to a Subway in Jamaica, New York, on Aug. 23 when she picked up a steak-and-cheese sandwich after ordering it through Subway’s mobile app for $6.99 plus tax.

“After she picked up and began eating her sandwich, [Tollison] realized that there was barely any steak in the sandwich and that the photographs that she relied on were grossly misleading,” the lawsuit says.

The lawsuit is seeking unspecified damages for New Yorkers who bought the sandwiches in the last three years from Oct. 28, 2021 and alleges “egregious” violations of the state’s consumer protection laws.

This is not the first time Subway has dealt with lawsuits critical of their business. In 2021, Ireland’s Supreme Court issued a ruling declaring that for the purposes of tax law, the bread served in Subway’s hot sandwiches does not actually meet the legal definition of “bread” because of its sugar content and is rather a “confectionary or fancy baked good.”

In that case, Justice Donal O’Donnell in the Ireland Supreme Court said that the definition of “bread” was originally established to make a distinction between the starch in other baked goods, like cookies or cake or brownies, that are sugary and therefore not healthy enough to be considered essential foods.

“Subway’s bread is, of course, bread,” Subway said in a statement given to ABC News. “We have been baking fresh bread in our stores for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.”

Subway also previously defended themselves against a lawsuit for more than four years claiming that their “footlong” sandwiches were too short. That case was dismissed in 2017.

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(NEW YORK) — Tens of thousands of Boeing machinists on Wednesday will vote on a new contract proposal that could end a weekslong work stoppage against the embattled aerospace company.

Workers overwhelmingly rejected a previous offer last month, putting the outcome of the impending vote in doubt.

Hours before workers were set to cast ballots, Boeing released an earnings report showing the company had lost a staggering $6.1 billion over the most recent quarter due primarily to costs associated with the strike.

“We have some really big rocks that we need to get behind us to move the company forward,” Boeing CEO Kelly Ortberg said in a letter to investors on Wednesday.

Ortberg singled out the strike as an issue that must be addressed “first and foremost.”

“We have been feverishly working to find a solution that works for the company and meets our employees’ needs,” Ortberg said.

The new offer delivers a 35% raise over the four-year duration of the contract, upping the 25% cumulative raise provided in the previous offer. The offer, however, falls short of workers’ demand for a 40% cumulative pay increase.

The proposal also hikes Boeing’s contribution to a 401(k) plan, but it declines to fulfill workers’ call for a reinstatement of the company’s defined pension. The contract includes a $7,000 ratification bonus for each worker, as well as a performance bonus that Boeing had sought to jettison.

The International Association of Machinists and Aerospace Workers (IAM), the union representing 33,000 Boeing workers, released a statement on Saturday calling the proposal “worthy of consideration.”

“With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members,” IAM said.

The company and its workers have faced significant financial losses during the nearly six-week strike.

Union members have received $250 per week from a strike fund, beginning in the third week of the work stoppage. That compensation marks a major pay cut for many of the employees.

Mid-ranking workers involved in the strike typically make $20 per hour, which totals $800 per 40-hour work week, while higher-paid members earn salaries upward of $100,000 per year, or nearly $2,000 per week

“The question is whether the employees and their union determine that they have the power to get more from Boeing,” Henry Harteveldt, a travel industry analyst at Atmosphere Research Group, told ABC News. “It’s whether they think they can extract more from Boeing, or Boeing says, ‘You know what, this is it.'”

The strike was set to cost Boeing $108 million per day in lost revenue, amounting to as much as $5.5 billion in losses should the work stoppage last 50 days, investment bank TD Cowen said in a report reviewed by ABC News at the outset of the dispute. So far, the strike has lasted 40 days.

In September, Boeing announced furloughs and pay cuts for some white-collar employees in response to the strike. Last week, Boeing CEO Kelly Ortberg announced plans to cut 17,000 jobs, which amounts to about 10% of its global workforce.

“This is really painful for Boeing,” Richard Aboulafia, managing director of aerospace consulting firm AeroDynamic Advisory, told ABC News.

The most recent IAM strike against Boeing in the Pacific Northwest, in 2008, lasted 57 days. Work stoppages undertaken by unionized Boeing employees in the same region have historically lasted an average of 60 days, a Bank of America Global Research analysis found after examining seven previous strikes, the earliest in 1948.

Workers will cast their ballots in a ratification vote on Wednesday. If a majority of workers back the proposal, the contract will be adopted and the strike will end.

Over the days leading up to the vote, the outcome remained unclear, Jake Rosenfeld, a professor of sociology at Washington University in St. Louis, who studies labor, told ABC News.

“What are the workers going to do?” Rosenfeld said. “That’s a really tough question.”

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(NEW YORK) — General Motors is “very serious about making Cadillac a premium brand again,” Michael Simcoe — the company’s senior vice president of global design — told ABC News in an interview about the “engineering and design tour de force” that is the new Celestiq.

The interview below has been edited for clarity.

Q: A huge trend in the industry now is customization, coachbuilding, bespoke vehicles. Why is Cadillac going in that direction and what has the response been like? And are you trying to appeal to customers who have Bentleys and Rolls-Royces?

A: With the Celestiq, we’re offering customers the ability to truly customize everything. The tyranny of choices is there and we try to help them. Customers have the ability to touch every color and finish on the exterior and interior of the car to give it their own personality. Yes, there are a few competitors, but people at this level are looking for something very unique and very specific to them.

Q: How long does it take to build a Celestiq?

A: We can build two a day. We are building cars right now and a number of people have gone through the design process and selected their interior, their exterior with our designers. So their cars are now in line to be built.

Q: How many orders have you received?

A: I can’t tell you that.

Q: Are customers coming to the Cadillac House in Michigan or are your designers flying all over the world to meet with clients?

A: They have a choice. We can do it online with them, they can come to Cadillac House and go through the samples with us. Or we’ll send designers to customers if we need to.

Q: When did Cadillac make the decision to go ultra luxe and offer a product that starts at $350,000?

A: Cadillac has tried a number of times to reestablish its position. It was and is becoming again the standard of the world. That’s the way we have always thought about it. Certainly for our customers we haven’t delivered that, at least delivered what they expected. We have tried a number of times to through vision products and concept flagships to spark a rebirth of Cadillac.

The only way to prove internally and externally that we were very serious about making Cadillac a premium brand again was to do a vehicle like the Celestiq. It’s an engineering and design tour de force and it’s hand built. It’s proof we can actually can take Cadillac back to the position it had in the past.

The Celestiq is new and represents the current generation. We really are predicting and showing people where we are going and I think that’s very important. Cadillac will no longer be something static that people get a chance to ignore and forget. We will be out there with beautiful designs and vehicles that people fall in love with.

Q: Celestiq, Lyriq, Optiq, Escalade IQ — why do all Cadillac EVs end in IQ?

A: We could have gone with our venerable names from the past, but that didn’t seem right when we were moving the brand to an all EV-based architecture. It was a signal that these vehicles were our new generation of Cadillacs.

Q: When you were overseeing the design of these new EVs, particularly the Celestiq, what was important to include?

A: We wanted a vehicle that was different to some of the high-end competition. We feel like we did our own thing in proportion to the vehicle. It still has a long hood. It has a hint of Cadillac heritage in the way the interior was designed. These long, horizontal architecture lines with metallic finishes and detail inside the car — that hints back to Cadillacs in the early 60s and 70s.

Q: Are customers actually going to drive the Celestiq or is it a vehicle to be chauffeured in?

A: This won’t be their daily driver but it could be. It has 300-ish miles of range, lots of power, lots of performance. It’s a very easy car to drive and control. It has four-wheel steering, so it drives like a small car. It has ride control and air suspension and all of the technical marvels like a large screen.

It is a spirited drive and it feels good. Jay Leno drove it and I think he enjoyed himself. But you can sit back here, in the second row, and it’s a premium experience as well. We’re not dictating where you should be.

Q: I want to ask about the CT5-V Blackwing and CT4-V Blackwing, two high-performance sedans that have received top praise from the enthusiast community. Are they going away now that the brand’s direction is electric? What’s the future for them?

A: I can’t tell you in detail but they’ll be around. We recognize the value of the cars so they”ll be around.

 

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(NEW YORK) — Shares of Netflix climbed about 9% in early trading on Friday after a strong earnings report propelled by hit shows like “Nobody Wants This” and “The Perfect Couple.”

The company added about 5 million subscribers over a three-month period ending in September, which marked a roughly 40% decline from the same period one year prior.

Even so, the subscriber gains contributed to revenue totaling nearly $10 billion, in part due to the growth in popularity a subscription tier that includes advertisements, the earnings report on Thursday said. That sales figure marked 15% jump when compared with the same period one year prior.

In all, Netflix boasts about 282 million subscribers worldwide, making it the most popular streaming service by a wide margin. By comparison, Warner Bros. Discovery counts roughly 103 million subscribers across its services HBO, HBO Max and Discovery +, an earnings report in August showed.

“We’re feeling really good about the business,” Ted Sarandos, the company’s co-CEO, said on a conference call with Wall Street analysts.

Notable programs from the most recent quarter included the latest season of “Emily in Paris,” as well as movies like “Monster High 2” and “Rebel Ridge.” The company also expanded its live broadcasts, featuring a face-off between hot dog-eating rivals Takeru Kobayashi and Choey Chestnut in September.

On the earnings call, Netflix touted viewership of about two hours per user each day, which the company said indicated an increase so far this year when compared to last year.

The company expects continued growth next year due to a slate of programming that includes new seasons of top shows like “Wednesday” and “Squid Game,” as well as an additional installment in the “Knives Out” film series, Netflix said.

Netflix forecasted as much as $44 billion in revenue next year, which would amount to about a 13% increase over current performance.

Even after expanding its audience, Netflix still captures less than 10% of television viewership in the countries where the platform is most popular, Netflix said.

“There’s a huge opportunity to grow,” Gregory Peters, a co-CEO at Netflix, said on Thursday.

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(WASHINGTON) — Former President Donald Trump has proposed tariffs as the solution for a host of perceived ills: the decline of U.S. manufacturing, the arrival of undocumented immigrants and the costs of childcare, among others.

“To me, the most beautiful word in the dictionary is ‘tariff,'” Trump said this week during an appearance at the Economic Club of Chicago.

On the campaign trail, Trump has rarely mentioned the threat of a potential trade war, in which foreign nations could respond to tariffs by slapping U.S. imports with taxes of their own.

Economists who spoke to ABC News said Trump’s tariff proposals would all but certainly trigger a global trade war, diminishing sales for U.S. exporters, which account for about 10% of the nation’s economy. The disruption would likely trigger job cuts and slow the nation’s economic performance, economists added.

On the other hand, the move would bring more of the supply chain back to U.S. soil, economists said, and it would likely spur growth and hiring at some firms by protecting them from foreign competition. But the same experts cautioned that such benefits would be far outweighed by the consequences.

“The essence of a trade war is you impose tariffs and other countries respond by putting high tariffs on your exports. It’s tit for tat,” Douglas Irwin, a professor of economics at Dartmouth College who specializes in the history of U.S. trade policy, told ABC News.

“Tariffs are easy to impose but hard to remove,” Irwin added.

In response to ABC News’ request for comment, the Trump campaign pointed to a series of statements about tariffs made by Trump and his allies, including remarks from Trump Campaign Senior Advisor Brian Hughes.

“Time warp alert! Just like 2016, Wall Street and so-called expert forecasts said that Trump policies would result in lower growth and higher inflation, the media took these forecasts at face value, and the record was never corrected when actual growth and job gains widely outperformed these opinions,” Hughes said.

“These Wall Street elites would be wise to review the record and acknowledge the shortcomings of their past work if they’d like their new forecasts to be seen as credible,” he added.

On the campaign trail, Trump has promised a sharp escalation of tariffs during his first term. He has proposed tariffs of between 60% and 100% on Chinese goods.

Envisioning a far-reaching policy, Trump has proposed a tax of between 10% and 20% on all imported products. On Tuesday, he told the audience at the Economic Club of Chicago that such a tariff could reach as high as 50%.

Economists widely expect that tariffs of this magnitude would increase prices paid by U.S. shoppers, since importers typically pass along the cost of higher taxes to consumers. Trump’s tariffs would cost the typical U.S. household about $2,600 per year, according to an estimate from the Peterson Institute for International Economics.

Meanwhile, there could be a second wave of consequences if foreign countries were to impose retaliatory tariffs, economists said.

“You might see a dramatic decrease in U.S. exports, which could then have employment effects for people working in those sectors,” Kara Reynolds, an economist at American University, told ABC News. She pointed to the manufacturing and farming as industries especially vulnerable to a trade war.

For evidence of such an outcome, one need look no further than Trump’s first term, during which a slew of tariffs often induced a retaliatory response.

Tariffs imposed during Trump’s first term often induced retaliatory tariffs. The European Union and Canada responded to tariffs on steel and aluminum with tariffs of their own. Trump slapped tariffs on about $360 billion worth of Chinese goods, but China responded with tariffs on tens of billions of dollars worth of U.S exports.

Chinese tariffs on U.S. soybean exports caused a steep decline in sales to Chinese customers, dropping exports from $12.3 billion in 2017 to $3.1 billion in 2018, according to the Georgetown University Journal of International Affairs. In response, the Trump administration paid billions of dollars in direct aid to farmers to make up for the losses.

“He felt obligated to bail out the farmers,” Robert Lawrence, a professor of trade and investment at Harvard University’s Kennedy School of Government, told ABC News. “Now, we’re talking about potential actions on a much grander scale.”

Alongside retaliatory tariffs, many countries would seek suppliers in places where such tariffs are not on the books, Lawrence added.

“Trump is likely to isolate the U.S. and drive other countries to do business with each other,” Lawrence said. “This would have a very adverse effect.”

On the campaign trail, Trump has sharply disagreed with such fears, saying large-scale tariffs would rejuvenate U.S. manufacturing and propel economic growth.

At the Chicago Economic Club on Tuesday, Trump said tariffs would force companies to locate factories in the U.S. as a way of circumventing the tariffs, which in turn would boost domestic production and employment.

“We’re going to have thousands of companies coming into this country,” Trump said. “We’re going to grow it like it’s never grown before, and we’re going to protect them when they come in because we’re not going to have somebody undercut them.”

Economists said higher tariffs could expand certain areas of U.S. manufacturing that face stiff competition from abroad, but the policy also risks raising input costs and slowing output at U.S. producers that import their raw materials.

Trump’s tariffs decreased U.S. employment by 166,000 jobs, according to a study from the nonprofit Tax Foundation, which cited an increase in import costs for U.S. employers. A separate study from the U.S.-China Business Council estimated up to nearly 250,000 lost jobs as a result of the tariffs.

“It certainly would make the U.S. more self-reliant, but it would come with far greater costs,” Lawrence said.

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(NEW YORK) — Boeing will reduce the size of its total workforce by 10% over the coming months, CEO Kelly Ortberg said in a letter to employees on Friday.

That amounts to around 17,000 jobs, based on the company’s December 2023 total workforce numbers.

Ortberg said due to the workforce reductions, Boeing would not proceed with the next cycle of furloughs.

Ortberg also said the 777X program would be delayed until 2026, the 767 freighter program would end in 2027 and the company expects “substantial new losses” in Boeing Defense, Space & Security this quarter.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

The company said Friday it expects to report third-quarter revenue of $17.8 billion, GAAP loss per share of $9.97 and operating cash flow of $1.3 billion.

The announcement comes after tens of thousands of Boeing workers voted to strike last month after rejecting the proposed contract.

The company has endured tremendous financial pressures and extra scrutiny following a series of failures involving its aircraft and supply.

On Jan. 5, a door plug blew out of the company’s 737 Max 9 aircraft at around 15,000 feet in altitude during an Alaska Airlines flight, prompting a federal investigation.

Boeing Starliner, a spacecraft that was being developed for the NASA Commercial Crew Program, was hit with several delays and rising costs before its first crewed launch to the International Space Station in June.

However the spacecraft was forced to return without its astronauts Barry “Butch” Wilmore and Sunita “Suni” Williams last month after tests showed there was too much risk with regard to the vehicle’s thrusters for re-entry.

Boeing announced last month that Ted Colbert, the president and chief executive officer of Boeing Defense, Space & Security, will be leaving the beleaguered company.

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(NEW YORK) — Inflation has loomed over the U.S. economy like a movie villain, haunting grocery store trips and gas runs. While costs remain much higher than they were a few years ago, those rapid price increases have mostly vanished.

Inflation stands at its lowest level in more than three years, hovering right near the Federal Reserve’s target rate of 2%, U.S. Bureau of Labor Statistics data this week showed.

Not long ago, a once-in-a-century pandemic upended the economy, sending millions nationwide into lockdown and snarling the global supply chain. Meanwhile, trillions of dollars in government support helped Americans spend amid the calamity.

A resulting imbalance between supply and demand sent prices soaring. The Russia-Ukraine war exacerbated the problem, causing gas and food shortages. Within a few years, the massive issue has largely been resolved.

“This was the highest inflation over the longest period that we’ve seen in decades. It was serious,” Claudia Sahm, chief economist at New Century Advisors and a former Fed official, told ABC News.

Here’s what to know about how inflation has come back down:

Repaired supply chain

During the pandemic, factories worldwide shut down. Workers stayed home for fear of getting sick. Freight ships waited off the coast of overwhelmed U.S. ports.

The pandemic clogged the global supply chain, imposing shortages for everything from cars to lumber to exercise equipment. Meanwhile, people stuck at home focused their spending on those exact sorts of products, since COVID-19 shutdowns prevented them from going out to eat or taking a vacation.

When too much money chased after too few products, prices climbed.

“The pandemic was the root of all evil in the economy,” Sahm said.

When lockdown rules were lifted, demand for goods slowed and manufacturers revved up production as workers returned. The nation’s ports loosened up the backlog of container ships, cutting freight prices dramatically and lowering costs for retailers.

Economists disagree over the role that elevated corporate profits played in driving inflation, as some say they account for more than half of the increase in prices while others say they have caused little or none of the hikes.

In some cases, the easing of supply chain blockages took months or even years to work their way through the global economy.

Take car prices, for example. When semiconductor production slowed nearly to a halt, carmakers lost out on a part necessary for production. Car prices skyrocketed, sending many consumers to the used car market. In turn, used car prices soared. So did costs for car repairs and, as a result, car insurance.

“Those have all now unwound,” William English, a professor of finance and former economist at the Federal Reserve, told ABC News.

Interest rate hikes

In response to rising inflation, the Fed embarked upon an aggressive series of interest rate hikes. Beginning in 2021, the Fed rapidly hiked interest rates, eventually putting borrowing costs at their highest level in more than two decades.

In contrast with the supply chain fixes, the interest rate hikes aimed to address the other side of the equation driving inflation: excess demand.

In March 2020, then-President Donald Trump signed into law a $2.2 trillion economic stimulus package, including direct payments of $1,200 and expanded unemployment insurance, among other measures. Months later, in December, Trump enacted a second $900 billion round of government support.

The following year, President Joe Biden signed a $1.9 trillion economic stimulus package of his own, including another round of $1,400 direct payments as well as an expansion of the child tax credit.

The government support helped buoy demand, even as the pandemic posed major challenges for the supply chain and decimated the service economy made up of sectors like restaurants and hotels.

“Now you have money, and nowhere to go and buy things,” said Hernan Moscoso Boedo, an economist at the University of Cincinnati.

By raising interest rates, the Fed made borrowing more expensive for consumers and businesses alike, making it difficult for them to take on loans for big purchases or large investments.

“Over the last few years, we’ve seen less money in the market because of the interest rates,” Boedo said, adding that the reduction of demand has helped ease prices.

Last month, the Fed reversed course, cutting interest rates by half a percentage point and dialing back the fight against inflation. While interest rates remain high relative to recent decades, the landmark shift suggests that the Fed considers the end of the inflation battle to be in sight.

“They’re close to being done,” Boedo said.

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(TAMPA, Fla.) — Hurricane Milton left widespread gasoline shortages across Florida after it made landfall on Wednesday night and cut across the state. The damage exacerbated fuel outages that began before the storm arrived, as millions fled from its path.

Nearly a quarter of the roughly 7,900 gas stations in the state have run dry, petroleum data firm GasBuddy reported Thursday. Oil Price Information Service, or OPIS, another company that tracks the sector, found as much as half of the state’s gas stations lack fuel, Denton Cinquegrana, chief oil analyst at OPIS, told ABC News.

Across Tampa Bay and St. Petersburg, almost two thirds of gas stations are without fuel, according to GasBuddy.

Experts said they expect the gas shortages to persist for days, hamstringing businesses and everyday people as Florida begins to recover from Hurricane Milton.

The delayed return of gasoline in the region owes to disruption at Port Tampa Bay, which says it handles more than 43% of the state’s petroleum imports. Far-reaching power outages will also impede gas service, since gas stations depend on power to pump fuel from storage tanks and deliver it into vehicles, experts said.

“This kind of situation isn’t solved overnight,” Jon Davis, chief meteorologist at Everstream Analytics, told ABC News. “It’s going to take many days to work itself out and get the situation back to normal.”

Port Tampa Bay, which remains closed, appears to have averted serious damage from the storm, the port said in a statement on Thursday morning. However, the port also noted that it continues to face road closures and flood concerns in the surrounding area.

“Some damage was observed to buildings but there has been no significant damage to docks, so far,” said the statement. “We are working with our fuel terminal operators to assess their facilities and learn when they will be able to return to service.”

Port Tampa Bay did not respond to an ABC News request for comment about the extent of damage from the storm.

While the port escaped a disaster that could have hampered fuel supplies in the state for weeks, the ongoing disruption still poses significant challenges for gas delivery in the short term, Jason Miller, a professor of supply-chain management at Michigan State University, told ABC News.

“It does seem we’ve avoided a worst-case scenario,” Miller said.

Depending on the extent of damage at the port, gas stations may come to rely on truck deliveries for the transport of fuel, Miller said. In that case, it would take some time to build up the capacity necessary to overcome the state’s gas outages, he added.

“It’s not a solution that you could implement tomorrow,” Miller said.

The potential return of port operations or the supplemental fuel from trucks would both rely on the state’s roads, some of which were damaged by the storm, experts noted. Such infrastructure may require repairs before gasoline carriers can safely deliver fuel to stations.

“The road issue can get taken care of in the next day or two,” Davis said.

Even if Port Tampa Bay comes back online and trucks join in to aid the recovery, a significant additional problem must first be addressed: power shortages. Gas stations require power to pump fuel from storage tanks into customers’ vehicles, and more than 3.4 million customers are currently without power in Florida, according to the tracking site poweroutage.us.

Port Tampa Bay said on Thursday that it remains without power, which it needs to operate oil terminals that make up a critical step in the supply chain.

More than 50,000 linemen have been pre-staged across Florida to restore power, Gov. Ron DeSantis said Thursday.

“In a perfect world, power comes back quickly,” OPIS’ Cinquegrana said. “I think by early next week we might still see some stations out but for the most part you’ll get pretty close to normal.”

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