The federal government’s budget deficit in May rose to a record $207.8 billion, 41.5% higher than a year ago. Most of that increase reflected the impact of calendar quirks that shifted $55 billion in June benefit payments into May.
The Treasury Department said Wednesday that the increase in the May deficit from an imbalance of $146.8 billion in May 2018 reflected the fact that because June 1 fell on a Saturday, benefit payments for June were paid out in May.
Through the first eight months of this budget year, the budget deficit totals $738.6 billion, an increase of 38.8% over the same period last year. For the full year, it is expected to climb sharply, with the Trump administration forecasting it will top $1 trillion, up from $779 billion last year.
The Congressional Budget Office is forecasting a slightly lower deficit of $896 billion for this year, but that would still be up 15% from the 2018 deficit.
The Trump administration is forecasting that the deficits will top $1 trillion for four years before starting to decline. The CBO is forecasting that the deficits will top $1 trillion beginning in 2022 and will remain above $1 trillion annually through 2029.
Ford is recalling over 1.3 million vehicles mainly in North America to fix rear suspension and transmission control software problems.
The largest recall covers over 1.2 million Explorer SUVs from 2011 through 2017. Ford said a rear suspension toe link can break if the suspension moves a lot. That can limit steering control. One customer reported running into a curb when a link broke, but Ford said it’s not aware of any injuries.
Dealers will replace the left and right toe links, which keep weight on the tires.
The Explorer recall will cost Ford an estimated $180 million that will show up in the company’s second-quarter results, Ford said in a filing with U.S. securities regulators.
Ford also is recalling 123,000 2013 F-150 pickups for a second time to stop transmissions from unintentionally downshifting into first gear. The recall covers pickups with 5-liter and 6.2-liter gas engines. A previous software update didn’t work. Dealers will update it again.
Former Starbucks CEO Howard Schultz says he’s taking a “detour” from a possible independent presidential bid.
The billionaire businessman cites health concerns in an email message to supporters, and says he’s taking the summer to rest and will revisit his presidential ambitions after Labor Day.
Two aides who spoke on the condition of anonymity to share internal discussions are confirming that Schultz’s Seattle-based campaign has made significant staffing cuts.
Schultz writes that he’s taking “this detour from the road reluctantly.” He says his “concern for our country’s future remains, as does my belief that the American people deserve so much more from our elected officials.”
He faced intense resistance earlier in the year from Democratic activists who feared an independent run would give President Trump an easier path to re-election.