The Director of the Budget Office Douglas Elmendorf says the economy is weaker than the CBO predicted earlier this year. So the spending cuts and tax increases would have a major impact.

 

“That would be a significant tightening of fiscal policy and would probably lead to a recession early next year.”

 

Unless the Congress acts, the CBO predicts economic output would decline and the unemployment rate would rise to just over 9% by the end of next year. The CBO says the uncertainty about the fiscal cliff is already depressing economic growth. Federal Reserve Chairman Ben Bernanke has been urging lawmakers to delay at least some of the impending budget cuts and tax increases. Craig Windham, NPR News, Washington.

 

The abortion issue continues to dog the GOP's Romney-Ryan campaign, which has been trying to keep its message focused on the economy. This comes in the wake of controversial remarks Republican Missouri Congressman Todd Akin made about abortion and rape. Akin says he intends to stay in the Senate race, even though he is under pressure by party bosses to drop out. Meanwhile, a Democratic politician from Minnesota is under pressure from his own party to step down for a sexual scandal involving a 17-year-old. But state legislator Kerry Gauthier reportedly tells Northland's NewsCenter in Duluth he will stay in the race for reelection.  

 

One expert is calling this year's West Nile virus outbreak one of the worst in more than a decade. Federal health officials are reporting triple the usual number of cases for this time of year: more than 1,100 illnesses, including at least 41 deaths nationwide; majority of reported cases in Texas. 

 

The International Monetary Fund Chief Christine Lagarde is in Egypt to restart talks concerning a 3.2-billion-dollar financial aid package. NPR's Leila Fadel reports the loan is needed to cover budget deficits and aid the nation's struggling economy.

 

Lagarde is scheduled to meet with President Mohammed Morsi and his newly appointed cabinet for two days of talks. Egypt's military leadership originally rejected the loan, saying it didn't want to put the country into more debt. But the new finance minister has said not only do they need the loan, they want even more - 4.8 billion dollars to cover budget deficits. Morsi and his government are facing an imminent financial crisis due to a drop in tourism and foreign investment revenues. Foreign reserves have plummeted, and financial experts say the economy needs a quick shot of cash to stop the currency from devaluing. 

 

Leila Fadel reporting.

 

This is NPR.

 

The Afghan government says it's reviewing all files on its soldiers and police to try to identify anyone who may be considered rogue. This comes in the wake of increasing attacks on coalition forces by Afghan personnel they've trained.  

 

Tropical Storm Isaac is getting better organized as it enters the Caribbean with maximum sustained winds of about 45 miles per hour. Phil Latzman from member station WLRN in Miami reports the direction of the storm remains uncertain as to its possible effects on Florida and the Southeastern US. 

 

Issac is likely to become a hurricane by tomorrow, forecast to skirt Puerto Rico, the Dominican Republic and Haiti on its way through the Caribbean. It's been expected to cross Cuba over the weekend and head towards Florida. But National Hurricane Center forecaster Todd Kimberlain says there are still many variables.

 

“The track could be anywhere from the Bahamas to the east coast of Florida into the Gulf of Mexico. So we’re telling interests in Florida and anywhere in the Southeastern US to monitor the progress of Issac very closely.”

 

The center of the new forecast track now follows along Florida's west coast, which could bring new concerns to Tampa as it prepares for the Republican National Convention next week. For NPR News, I'm Phil Latzman in Miami. 

 

Former Cy Young Award winner Bartolo Colon of the Oakland A’s has been ordered to sit out 50 games after he tested positive for testosterone, same punishment Major League Baseball handed to the San Francisco Giants' Melky Cabrera a week ago. In a statement, Colon apologized to the fans and his team.

 

Before the close on Wall Street, Dow was down 31 points at 13,173 in trading of 2 billion shares; NASDAQ was up six at 3,074; S&P 500 up a fraction of a point.