Judge quashes subpoenas in Justice Department's investigation of Fed chair Jerome Powell
WASHINGTON (AP) — A federal judge on Friday quashed Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that has already attracted strong criticism on Capitol Hill. Judge James Boasberg said that a “mountain of evidence suggests” that the purpose of the subpoenas was simply to pressure the Fed to cut its key interest rate, as President Donald Trump has repeatedly demanded. Fed Chair Jerome Powell revealed the investigation Jan. 11, prompting Senator Thom Tillis, a North Carolina Republican to block consideration of Trump’s pick to replace Powell as Fed chair when his term expires May. 15.
Trump says US bombed military sites on an island vital to Iran's oil network
DUBAI, United Arab Emirates (AP) — President Donald Trump says the U.S. bombed military sites on an island vital to Iran’s oil network. Trump made the announcement Friday in a social media post. Also Friday, an American official said 2,500 more Marines and an amphibious assault ship are being sent to the Middle East nearly two weeks into the war with the Islamic Republic. Trump said U.S. forces “obliterated” targets on Iran’s Kharg Island — the primary terminal that handles the country’s oil exports — and warned that the island’s oil infrastructure there could be next. Just a day before, the speaker of the Iranian parliament said such a strike would provoke a new level of retaliation.
US stocks lose ground as war with Iran keeps pressure on oil prices
Wall Street’s losses deepened as the ongoing fallout from the war in Iran keeps pushing oil prices higher, ratcheting up inflationary pressure on the global economy. After briefly easing early Friday, crude oil prices rose again, bringing the benchmark oil price back above $100 a barrel. The S&P 500 fell 0.6%. The Dow Jones Industrial Average lost 0.3% and the Nasdaq composite dropped 0.9%. A measure of inflation closely monitored by the Federal Reserve moved higher in January, even before the war with Iran sent energy prices higher.
Cracks emerged in a resilient US economy before war in Iran sent oil prices rocketing
WASHINGTON (AP) — Newly released data shows the U.S. economy was already showing signs of strain even before the launch of the Iran war, underscoring the risks that rising energy prices could pose. The economy barely grew in the final three months of last year, the Commerce Department said Friday, as it cut its estimate of fourth-quarter growth in half. Consumer spending, after adjusting for inflation, was anemic in January. Hiring has also ground largely to a standstill. Gasoline prices have raced closer to $4 per gallon, potentially squeezing household budgets already under pressure. Many Americans will receive larger-than-usual tax refunds because of President Donald Trump’s tax cut law last year, but higher gas costs, if they persist, could soak up much or even all of those gains.
Key inflation gauge worsened in January, before Iran war lifted gas prices
WASHINGTON (AP) — An inflation gauge closely monitored by the Federal Reserve moved higher in January in the latest sign that prices were persistently elevated even before the Iran war caused spikes in oil and gas costs. Prices rose 2.8% in January compared with a year earlier, the Commerce Department said Friday. And excluding the volatile food and energy categories — which the Fed pays closer attention to — core prices rose 3.1%, up from 3% in the prior month and the highest in nearly two years.
Offshore wind project targeted by Trump administration starts sending power to the New England grid
An offshore wind project targeted by the Trump administration has begun sending power to New England’s electric grid. The Danish company Orsted said Friday that Revolution Wind is now generating power and will scale up in the weeks ahead until it is fully operational. Orsted is building Revolution Wind with Skyborn Renewables to provide electricity for Rhode Island and Connecticut. The boost will be enough to power more than 350,000 homes and businesses. Revolution Wind is one of five major East Coast offshore wind projects the Trump administration halted construction on days before Christmas, citing national security concerns. Developers and states sued. Federal judges allowed all five to resume construction.
US job openings rise to a better-than-expected 7 million despite sluggish labor market
WASHINGTON (AP) — U.S. job openings rose to nearly 7 million in January, better than expected at a time when the American labor market has looked sluggish. The Labor Department said Friday that 6.95 million job postings in January were up from 6.55 million in December and higher than economists had forecast. Layoffs fell slightly and the number of Americans quitting their jobs — a sign of confidence in their prospects — slipped modestly. In the hiring boom that followed COVID-19 lockdowns, job openings peaked at a record 12.3 million in March 2022.
Trump bragged about low gas prices. The Iran conflict has him doing an about-face
WASHINGTON (AP) — Oil and gas prices have spiked with the war in Iran. That has President Donald Trump pivoting from bragging about low gas prices, to now saying oil prices make the country “a lot of money" because of its oil production. Trump's desire to flex America's muscle on the global stage is at odds with his political interests at home, where voters now face rising costs ahead of November midterm elections. Trump has given a series of conflicting messages about his plans to get tankers moving through the Strait of Hormuz and whether he needed to dip into America's strategic oil reserves.
Iraq is caught in the crossfire of the Iran war, with attacks by both sides on its soil
IRBIL, Iraq (AP) — Iraq is caught in the crossfire of the Iran war and is the only country facing strikes from both sides, threatening to drag the nation that has so far avoided two years of regional turmoil into a full-blown crisis. Disruptions to Gulf shipping and strikes on oil fields and infrastructure have all but halted exports, jeopardizing a state that relies on such trade for the bulk of its revenue. If the shutdown continues, Baghdad could be unable to meet its oversized public‑sector payroll. In the meantime, near-daily drone strikes have targeted American interests across the country, while the U.S. has struck back against militia bases to defend its troops.
What to know about the Jones Act as Trump considers a waiver during the Iran war
NEW YORK (AP) — As the U.S. and Israel’s war against Iran continues to upend energy markets and supply chains worldwide, the Trump administration says it might suspend maritime shipping requirements under a more than century-old law known as the Jones Act. The Jones Act requires that goods hauled between U.S. ports be moved on U.S.-flagged vessels. Passed in 1920, this law aims to protect the American shipping sector — but it’s also faced criticism over the years for slowing the delivery of goods, including critical aid during time of crisis. And it’s often blamed for making gas, in particular, more expensive because oil is such a global commodity.
