Good morning. This is Jeff Sparshott with the latest on the economy. You can send questions, comments and suggestions by replying to this email.

Xi Jinping laid out ambitious plans two years ago to expand China’s wealth and double the size of the nation’s economy by 2035. The target would require China’s economy to grow an average of nearly 5% annually over 15 years, according to estimates by officials involved in policy-making. Many economists inside and outside of China now believe 5% won’t be achievable, not just for this year, but also for the longer term. A major challenge is Mr. Xi’s political agenda. Since he rose to power in 2012, Mr. Xi has put ideological rectitude, national security and Communist Party control at the center of policy. And he has insisted on greater state control over the economy—an approach that many economists say has come at the expense of the dynamic private sector that propelled China’s extraordinary growth, Lingling Wei reports.

Private-sector economists, the World Bank and other institutions expect China’s growth to rebound to around 4.5% next year after an estimated 3% or so in 2022, assuming Beijing eventually relaxes its zero-Covid policy. Many economists predict growth will remain weaker than before the pandemic, in part due to a shrinking workforce and rising debt levels.

U.S. industrial production for September is expected to increase 0.1% from the prior month. (9:15 a.m. ET)

The National Association of Home Builders housing market index is expected to fall to 44 in October from 46 one month earlier. (10 a.m. ET)

Federal Reserve speakers: Atlanta's Raphael Bostic on the labor market and economy at 2 p.m. ET, and Minneapolis's Neel Kashkari on the economic outlook at 5:30 p.m. ET (livestream).

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Many U.S. households are still struggling to find baby formula, almost a year since supplies thinned on store shelves and eight months after a nationwide recall. Adults in roughly one-third of households with infant children who typically use formula had trouble obtaining it last month, according to a recent survey by the U.S. Census Bureau. Nearly one in five of affected households has less than a week of formula on hand, the survey showed. The survey offers one of the most detailed views yet into the nationwide formula shortage, and comes as lawmakers are taking steps to address ongoing supply issues, Jesse Newman and Kristina Peterson report.

Restaurant reservations are so hot, some places have a 1,000-person waiting list. Demand for dining out is growing as restaurants are trying to manage staff shortages, condensed dining hours and fewer walk-ins. That means popular eateries across the country are seeing extra-long standby lists for those angling for a reservation. Since the onset of the pandemic, many consumers are less willing to spontaneously dine out and prefer certainty in their plans, restaurateurs say. And as restaurant traffic rebounds to prepandemic numbers, a higher portion of diners is booking online reservations, Alina Dizik reports.

Bank of America Chief Executive Brian Moynihan said high inflation and rising interest rates haven’t done much to weaken the health of the American consumer. The company’s data show that spending growth remains strong in terms of both amounts and number of transactions. Americans are spending in particular on travel and entertainment, which tend to be discretionary items. Deposit balances remain higher than prepandemic levels by multiple times and delinquencies remain low, Ben Eisen reports.

The Biden administration formally launched an online portal through which individuals with federal student loans can apply for up to $20,000 in debt forgiveness. More than eight million people applied for relief over the weekend following the Education Department’s launch of a beta test version of the application, Andrew Restuccia and Gabriel T. Rubin report.

Pressure on beaten-down U.S. bonds is showing few signs of relenting, driving Treasury yields to new highs and threatening further pain across financial markets. With bond investors already confronting their worst returns in living memory, Treasury yields kept on climbing last week in response to more bad news on inflation, stubbornly strong economic-activity data and continuing turmoil in overseas markets. Yields rise when bond prices fall, Sam Goldfarb reports.

New U.K. Treasury Chief Jeremy Hunt said Monday he was reversing nearly all the government’s proposed tax cuts and would pare back an energy price-cap subsidy as he moves to reassure markets about the stability of the nation’s finances. Mr. Hunt, who took over on Friday after Ms. Truss fired his predecessor, Kwasi Kwarteng, has acted quickly in his first days on the job to try to repair the damage to Britain’s standing among investors by taking steps to shore up public finances after weeks of turmoil on U.K. financial markets, Max Colchester and Paul Hannon report.

Natural-gas prices in Europe slid as traders braced for a proposal from the European Commission to place a price cap on wholesale markets if the energy crisis spirals into an emergency. The proposed cap on the continent’s benchmark gas contract would be a last-ditch measure to soften the blow for consumers and businesses if gas prices reached extreme levels and other tools to calm them have been exhausted, Joe Wallace and Kim Mackrael report.

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Real Time Economics comes to you from WSJ reporters and editors around the world. Today's issue was curated and edited by Jeff Sparshott (@jeffsparshott) and Greg Ip (@greg_ip) in Washington, D.C., and James Hookway (@JamesHookway) in London.

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