President Donald Trump's promise to send $5,000 dividend checks to U.S. adults if Republicans maintain control of Congress in the November midterm elections has been met with skepticism from some Republicans and economists. The program is estimated to cost approximately $1.2 trillion, plus hundreds of billions in interest, a figure that would significantly expand the federal budget. Economists warn that such a direct payment could exacerbate inflation and further strain household finances, comparing it to pandemic-era stimulus checks that indirectly raised prices. Experts like Heather Long, chief economist at Navy Federal Credit Union, suggest that while Americans might welcome the immediate financial relief, it would lead to long-term pain through increased inflation and borrowing costs for homes, cars, and credit cards. Brett House, an economics professor at Columbia Business School, added that it would push up the federal deficit, inflation, and interest rates, weakening the U.S. economy.
Simultaneously, The Wall Street Journal reported that Iran has resumed production of ballistic missiles, contradicting the Trump administration's claims of having destroyed Tehran's military capabilities during the months-long conflict. U.S. and Middle Eastern officials state that Iran is assembling new missiles in underground sites, including the Khojir facility, using existing components in limited quantities. The regime is also establishing new underground assembly sites to avoid future American attacks. This resurgence in production comes despite U.S. and Israeli damage to Iranian industrial facilities and a U.S. naval blockade restricting imports of missile components. One U.S. official indicated that production likely resumed after an interim peace deal was signed in June.
U.S. defense officials have maintained that American strikes have significantly degraded Iran's military infrastructure. Defense Department spokesperson Sean Parnell claimed that up to 90% of Iran's drone, ballistic missile, and naval industrial base has been destroyed, and its drone and missile capabilities significantly reduced. However, Tal Inbar, an analyst at the Missile Defense Advocacy Alliance, believes Iran still possesses thousands of ballistic missiles. Iranian officials, through the state-run Fars News Agency, hinted at further developments in their defense capabilities. These reports follow an attack by Iran on U.S. military aircraft in Jordan, which the U.S. denied caused any damage, in retaliation for U.S. strikes on Iranian oil tankers. The ongoing conflict, now in its sixth month, has been marked by Iran's closure of the Strait of Hormuz, impacting global oil supply and contributing to rising gas prices.
