Hurricane Milton is nearing the west coast of Florida and bringing a second powerful storm to the state within two weeks.
Here's the latest update on the storm, expected to make landfall in the U.S. on Wednesday night.
What Happened: Hurricane Milton reached Category 5 status Monday with winds of 180 miles per hour, making the storm one of the strongest in the world in 2024.
The hurricane was downgraded to a Category 4 storm on Tuesday, but could be elevated to Category 5 status once again Tuesday late or on Wednesday.
"I was just briefed by members of my team who are driving our preparations for Hurricane Milton and recovery efforts for Hurricane Helene," President Joe Biden tweeted. "I directed this group to do everything we can to save lives and help communities before, during, and after these extreme weather events."
Biden said there are thousands of federal personnel on the ground in the Southeast to help deliver resources as fast as possible.
"My priority is to increase the size and presence of our effort as we prepare for another potentially catastrophic storm making landfall in Florida."
Tampa Mayor Jane Castor cautioned against the spreading of false statements and rumors about government and the state of Florida not working together causing a shortage or response resources, as reported by CNN.
"That could not be further from the truth," Castor said.
Castor said she spoke with Biden about preparations on Monday night. The mayor also spoke with FEMA Administrator Deanne Criswell.
"They are working to get us all the resources we need."
Economic Impact: Hurricane Milton could have a severe impact on the insurance sector, especially with back-to-back hurricanes hitting Florida in a short period.
Insurance stocks like Berkshire Hathaway BRKBRK, Allstate Corporation ALL, Chubb Limited CB, Progressive Corp PGR and Travelers Companies Inc TRV could all be volatile as the financial impact of the hurricane becomes clear.
While insurance and other sectors could get hit, Federal Open Market Committee member Raphael Bostic, who is the president of the Federal Reserve Bank of Atlanta, said the storm could have a big impact on the overall U.S. economy over the next three to six months.
Bostic said changes in storms, like Hurricane Helene and Hurricane Milton, can impact the supply and demand of housing in different cities. Bostic also said the frequency of impactful hurricanes can hit markets like insurance and food commodities.
Financial firms need to recognize how hurricanes and other catastrophic events change their risks, Bostic added.
Jefferies analyst Yaron Kinar called Hurricane Milton a potential "1-in-100 year event" that could cause damage of over $50 billion and the potential to have a $175 billion impact in a worst-case scenario, as reported by CNBC.
Kinder Morgan Inc KMI shut down its Central Florida pipeline system, according to a report from Reuters. The pipeline system delivers gasoline and diesel from Tampa to Orlando. Citgo also shut down a terminal in Tampa ahead of the storm.
Theme parks in Florida remain on watch with Walt Disney Co DIS-owned Disney World and Comcast Corp CMCSA-owned Universal Orlando remaining open under normal conditions as of the time of writing, as reported by the Associated Press. A Goldman Sachs analyst said Tuesday that the hurricane could have a $150 million to $200 million negative impact on Disney.
Evacuation Orders: Of the five most populous Florida cities (Jacksonville, Miami, Tampa, Orlando, St. Petersburg), four are located in counties that have evacuation orders in place, with only Jacksonville not on the list. With these highly populated regions and numerous counties on the list, Hurricane Milton is driving the most evacuations in the state since 2017.
Government officials have stressed the importance of evacuations in mandatory areas, with Tampa's mayor saying that failure to evacuate could lead to death.
Biden echoed that sentiment in a tweet.
"I urge everyone in Hurricane Milton's path to listen to local officials and follow all safety instructions. If you are under evacuation orders you should evacuate now while it is still safe to do so. It is a matter of life and death," Biden tweeted.
The Associated Press said Wednesday that around 5.9 million people are impacted by the 11 counties under mandatory evacuations based on estimates from the U.S. Census Bureau.
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