Treasurer Jim Chalmers has pushed back against criticism of Labor’s economic record, arguing that government spending is not the main force driving inflation in Australia.

During a tense interview on ABC’s Insiders on Sunday, Chalmers pointed to several other sources of economic pressure, including the war in the Middle East, Australia’s housing shortage and persistently weak productivity growth.

“Budget settings are not the primary driver of prices in our economy. There’s a whole bunch of other things going on,” Chalmers told presenter David Speers.

The Treasurer accepted that public spending contributes to aggregate demand, but maintained that activity in the private sector was exerting considerably greater pressure on prices.

“Nobody’s ever contested that,” he said when asked whether government demand was contributing to inflation.

“It means it’s part of the aggregate demand calculation. Nobody’s ever contested that, but the important point here—”

Chalmers said the figures showed public demand had fallen sharply over the past year, while private demand had accelerated. “If you compare the last year of demand in our economy compared to the year before, what you’ll see is that public demand has halved over the last year, while private demand has tripled,” he said.

He also conceded that Australia was facing a serious productivity problem, an issue Reserve Bank Governor Michele Bullock has repeatedly identified as important to the nation’s inflation outlook.

“We have a productivity challenge in our economy,” Chalmers said.

He said the government’s response included “the biggest and broadest productivity package in any budget in recent decades”, describing the reforms as a central reason behind its economic strategy.

The Treasurer further argued that international developments were intensifying inflationary pressures, with the continuing conflict in the Middle East adding to the economic strain.

“I think it’s clear whatever the reasons were for going in, from an economic point of view, the war in the Middle East has been a disaster,” Chalmers said.

He said the conflict had made the cost-of-living crisis worse for Australians and people around the world.

According to Chalmers, the war is placing “very substantial upward pressure on inflation” worldwide, with the economic consequences likely to deepen if the fighting continues.

His defence of Labor’s policies came after economists, former Treasury secretaries and former Reserve Bank governor Philip Lowe urged governments to adopt tighter fiscal settings. Chalmers instead highlighted the savings delivered since Labor came to power.

“The last budget of our predecessors had no savings. We found almost $180 billion in savings,” he said.

Chalmers was also pressed on whether he should target another budget surplus, but stopped short of making such a commitment. He argued that recording a surplus would not, by itself, remove the broader forces pushing inflation higher.

“When I handed down two surpluses at the start of this government, we saw inflation coming up at the same time, which shows there are other factors at play,” he said.

The Treasurer confirmed Labor was preparing another round of savings ahead of the mid-year economic and fiscal outlook.

‘There will be more savings in the mid-year update,’ he said.

However, he warned that rising global bond yields were putting fresh pressure on the budget.

‘We’ve got almost $1trillion of debt in the budget. When some of that cheaper debt rolls off, it needs to be replaced with more expensive debt.’

Chalmers said higher borrowing costs would add ‘some billions of dollars’ in additional pressure to government finances.

Shadow Treasurer Tim Wilson accused Chalmers of contributing to the inflation Labor had pledged to tackle. 

‘We all know that my view on that is no, Andrew,’ Wilson told News24 when asked whether Chalmers should remain Treasurer. 

‘This is a man who’s actively stoked inflation because it gives him a windfall tax revenue because he can’t manage his budget, and Australian households are poorer because he has been a disaster as Treasurer.’

Wilson accused Chalmers of exaggerating the government’s fiscal restraint.

‘He’s saving $2 then goes on and spends $3. He’s actively stoked inflation and he’s fundamentally undermined the success of this country,’ he said.

The Coalition frontbencher also turned to productivity, claiming Labor’s spending policies were making the economy less efficient and driving up prices. 

‘We have a government that’s at a 40-year high of expenditure outside of a pandemic or crisis,’ Wilson said.

‘The government continues to spend with abandon. They have little concern for the impact that they’re spending on the Australian taxpayer and, more importantly, how it’s actively stoking inflation.’

‘When we have these problems, they ultimately go through and feed inflation as well as being an abuse of taxpayers’ money.’

Wreckage from a plane that vanished while flying toward the United States has been found off the Massachusetts coast, as rescuers launch an urgent search for the six people aboard.

The debris field was located several hours after the medical transport aircraft operated by Latitude Air Ambulance lost contact on Saturday.

The Gulfstream G100 was flying from Bermuda to Boston when it disappeared at about 2am.

Those on board included two Canadian pilots, two Canadian medical workers, a patient from Bermuda and the patient’s relative.

‘Coast Guard search crews located a debris field that has been confirmed to be associated with the missing aircraft,’ the Coast Guard said in an update issued Saturday night.

‘Crews are continuing to search for the six people who were aboard the aircraft and the Coast Guard cutter William Sparling will continue search efforts throughout the night.’

Over the previous 27 hours, the Coast Guard had searched 1,644 square miles, with the recovery mission still underway.

The operation has involved multiple agencies, including a Jayhawk helicopter crew, motor lifeboat teams and aircraft from the New York Air National Guard’s 106th Rescue Wing.

The aircraft left John C Munro Hamilton International Airport in Ontario at 7.10pm EST and arrived at Bermuda’s LF Wade International Airport shortly before 9.30pm.

It departed again at 11.41pm, bound for Logan International Airport in Boston. After roughly an hour in the air, the plane dropped from about 25,000 feet to approximately 11,000 feet shortly after 1am, according to FlightAware data.

The aircraft’s last signal was received at around 1.30am, not long before it was due to land in Boston.

The final audio recording between the flight crew and air traffic control captured the tense exchanges in the moments before contact was lost.

‘You said you’re coming in blind?’ a New York controller can be heard asking the Latitude Air Ambulance flight.

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‘Okay, can you declare an emergency or not?’ he asked, adding that the reception was ‘a little weak.’

The controller then said he ‘didn’t hear what your response was if you were declaring an emergency or not.’

Seconds later, he repeatedly asked whether the air ambulance was still there, but received no reply.

He then asked another person whether the aircraft appeared on radar. A different man responded that radar coverage ended for anything below 9,500 feet.

Latitude’s Director of Flight Operations Clarence Togeretz told NBC News: ‘We always get rather concerned when our crew doesn’t report to us in a timely manner.

‘But I will say that again, optimistically and positively, that doesn’t mean that the worst has happened.’

Mary Schiavo, a former Inspector General of the Transportation Department, told the Associated Press that the plane’s sharp descent could mean it lost navigational instruments as a storm passed. 

‘Something bad happened with this big drop, and they flew into this big storm. It’s a terrible place to have a loss of your instruments and be flying blind,’ Schiavo said.

‘It’s very easy to get disoriented and not know if you’re turning, climbing, descending, etc. Spatial orientation hits pretty quickly.’ 

The Bermuda Government confirmed that the aircraft was reported missing after losing contact with air traffic control. 

The government added that officials were in contact with the families of those on board and remain in contact with US officials on the search. 

‘My thoughts are with everyone on board and their families during this deeply worrying time. We are praying that all six people will be found safe, and we thank the search and rescue crews for their continuing efforts,’ Bermuda Premier David Burt said.

Canadian Minister of Transport Steven MacKinnon confirmed in a statement on X that four of the people on board are Canadians. 

‘We are closely monitoring the situation and are working with the relevant authorities as search and rescue efforts continue. I want to thank all first responders involved for their ongoing efforts,’ MacKinnon added. 

The Coast Guard has scheduled a press conference at 11am EST to provide an update.  

Donald Trump brought his signature intensity to an Ohio campaign rally, urging supporters to help Republicans defeat Democrats in the upcoming midterm elections.

On Saturday, the President was campaigning for Republican Senator Jon Husted, who is seeking reelection, and former DOGE co-chair Vivek Ramaswamy, who is running for governor.

With Democrats widely expected to compete strongly for control of the House and possibly the Senate, Trump energized the crowd at Butler High School in Vandalia, near Dayton, by predicting a major Republican victory.

“You gotta get out and vote, and if you do, we’re gonna win big and we’re gonna shove it up their a**,” Trump told the cheering audience.

He also attacked Democrats with an insult referring to them as “dumb sons of b****es” and revived his recently coined nickname, “Dumbocrats.”

Trump then turned his attention to CNN anchor Kaitlan Collins, a familiar target in his public criticism and frequent clashes with the news network.

“She’s such an unhappy person,” Trump said of Collins. “Young, nice person, but she never smiles. She’s a very unhappy person.”

Ramaswamy and Husted joined Trump at the event, while Super Bowl-winning NFL coach Jon Gruden also delivered a spirited speech to rally the crowd.

After Gruden finished speaking, Trump praised him in front of the enthusiastic audience, calling him “one of my favorite coaches in the whole world.”

Trump and Gruden have previously spent time together, including at least one round of golf in 2025.

“He’s a great coach and he’s a very good golfer too,” Trump said. “Right, Jon? We had a great time. He’s a great winner. He’s a winner.”

The crowd responded warmly to Trump’s remarks, which followed Gruden’s energetic address about his Ohio roots.

“I came back for one reason,” Gruden told the audience. “I’m from Ohio. My mom and dad are from Cleveland. I was born in Sandusky and I went to the University of Dayton, and I’m damn proud of it, man!”

Supporters at Vandalia’s Butler High School answered Gruden with loud cheers and applause.

Trump says he is beginning a 32-day campaign blitz ahead of the November 3 elections. His schedule includes stops this week in the deep-red states of Texas, Oklahoma and Alabama, followed by a visit to Ohio, a key battleground with one of the cycle’s most closely watched Senate races.

Husted was appointed to the Senate seat left vacant when JD Vance became vice president and is now campaigning to secure the position through election.

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There is likely no path to a Senate majority for Democrats without flipping Ohio, where former three-term Senator Sherrod Brown is trying to return to the Senate after losing to Republican Bernie Moreno two years ago.

Since last year, Democrats have listed Ohio, along with states such as North Carolina and Maine, as key races to win control of the Senate. 

And this past week, the head of the Senate GOP´s campaign arm said Ohio is among 10 battleground races that are ‘within striking distance.’

At his rallies, Trump has been trying to convince voters that the economy is better than they feel it is, even though polls show Americans are frustrated with the way he’s handled it. 

The high cost of living, including gas prices elevated by Trump’s war on Iran, is a top issue in the Dayton area, too. 

And just days before Trump’s rally, nearly 1,400 people were laid off from a truck factory in nearby Springfield.

‘Your state is booming. Every – I hate to say it – every state is booming,’ Trump insisted Saturday. ‘They’re all booming.’

Trump’s rally comes as Republicans worry that Husted’s campaign has failed to adequately catch fire with voters in the Republican-dominated state. 

Brown and allied groups have hammered Husted for his data-centers role, and the NRSC has pinpointed it as a political vulnerability.

Meanwhile, in the governor’s race, Republican Vivek Ramaswamy faces Democrat Dr. Amy Acton, the state’s former Covid-era health director.

A wealthy biotech entrepreneur and 2024 presidential candidate, Ramaswamy’s star appeal among conservatives led to quick backing by Ohio Republicans and hopes of an easy victory in the Republican-dominated state. 

However, despite a massive fundraising lead and more than $12 million spent in campaign advertising, he is now locked in a close fight with Acton with weeks to go until Election Day.

‘I’m so grateful to this state and to this country for giving a kid like me opportunities that would not have been available to my family in any other country on planet earth,’ Ramaswamy said at the rally ahead of Trump’s arrival, as he underscored the American dream for his Indian immigrant family.