Powell plans to remain on Fed board, cites legal actions by Trump administration
WASHINGTON (AP) — Jerome Powell plans to remain on the board of the Federal Reserve after his term as chair ends next month “for an undetermined period of time,” saying the “unprecedented” legal attacks by the Trump administration have put the independence of the nation’s central bank at risk. The Fed Wednesday left its benchmark interest rate unchanged for the third straight meeting but signaled it could still cut rates in the coming months, moves that attracted the most dissents since October 1992. The Senate Banking Committee earlier approved Powell's successor as chair, Trump appointee Kevin Warsh, on a party-line vote.
Kevin Warsh is one step closer to top job at the Fed after Trump's pick approved by Senate committee
WASHINGTON (AP) — The Senate Banking Committee voted on party lines to approve Kevin Warsh as the next chair of the Federal Reserve, to replace Jerome Powell, a longtime target of President Donald Trump’s insults for not cutting borrowing costs as far as the president wanted. Warsh is a former top Fed official but has also been a sharp critic of the institution and Powell’s leadership. A vote on his nomination probably won’t take place until next month, but he could be confirmed by the time Powell’s term as chair ends May 15.
Brent crude surges to $123 a barrel on Iran war worries, while world stocks retreat
HONG KONG (AP) — The price of Brent crude oil has surged to around $123 a barrel as stalled U.S.-Iran talks raise doubts over the reopening of the Strait of Hormuz and a permanent end to the Iran war. Brent crude oil to be delivered in June jumped 4.1% to $122.88 after briefly surpassing $125 per barrel. Brent for July delivery rose 2.5% to $113.17. U.S. futures and Asian shares fell. Before the war began in late February, Brent crude was trading around $70 per barrel. There's no clear path to ending the war, which is in its ninth week. The U.S. has continued its blockade of Iranian ports while the Strait of Hormuz, is closed, pushing oil prices higher.
Analysis: US blockade is squeezing Iran's all-important oil industry
DUBAI, United Arab Emirates (AP) — Even as Iran maintains its chokehold on the Strait of Hormuz, the Islamic Republic increasingly finds itself squeezed by an American blockade threatening its oil industry. The situation isn’t as dire as President Donald Trump recently described, colorfully suggesting pipelines could start exploding within days. However, experts suggest Iran already has begun dialing back its production of oil. Within about two weeks, some say, Iran will face harder choices about what to do, including whether to shut down some of its aging wells. Analysts say they may not be able to come back online easily — if at all.
The Bank of England is expected to keep interest rates on hold as it weighs the impact of Iran war
LONDON (AP) — The Bank of England is expected to announce it's keeping interest rates on hold as policymakers assess the economic impact of the Iran war and Tehran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s crude passes in peacetime. The nine-member panel may hint that interest rates could increase in the months to come if the conflict in the Middle East — where a shaky ceasefire is holding for now — puts more upward pressure on U.K. inflation. For now, the Monetary Policy Committee is expected to keep the bank’s main rate at 3.75% on Thursday, with one or two members possibly voting for a quarter-point hike as a preemptive measure against higher inflation.
Alphabet's first-quarter profit soars as Google's big AI bets help push stock to new highs
Google’s transition into the era of artificial intelligence continued to pay off for its corporate parent, Alphabet Inc., which on Wednesday announced another quarter of the stellar growth that helped to more than double its already lofty market value during the past year. Alphabet earned $62.6 billion, or $5.11 per share, during the January-March period, an 81% increase from the same time last year. Revenue climbed 22% from last year to $109.9 billion. Both numbers easily surpassed the analyst projections that steer investors. Alphabet's stock price rose by more than 6% in extended trading, putting the shares on trajectory toward a new peak in Thursday's regular trading.
Meta beats revenue expectations, boosts capital spending forecast for 2026
Meta Platforms Inc. reports strong first-quarter results, surpassing expectations with significant earnings growth, but the stock slipped in after-hours trading. The company earned $26.8 billion, or $10.44 per share, from January to March, up 61% from last year. Revenue rose 33% to $56.3 billion. Analysts had expected earnings of $6.67 per share on $55.6 billion in revenue. CEO Mark Zuckerberg highlighted strong momentum and the release of a new model from Meta Superintelligence Labs. Meta raises its capital expenditures forecast for the year, citing higher component pricing and data center costs. The company plans to lay off about 8,000 workers to boost efficiency.
Elon Musk tells his side of OpenAI's beginnings in trial pitting him against CEO Sam Altman
OAKLAND, Calif. (AP) — Elon Musk took the stand for the second day Wednesday in the landmark trial that pits the world’s richest person against Sam Altman, a fellow OpenAI co-founder he accuses of betraying promises to keep the company as a nonprofit dedicated to humanity’s benefit. The trial centers on the 2015 birth of the ChatGPT maker as a nonprofit startup primarily funded by Musk before evolving into a capitalistic venture now valued at $852 billion. It started Monday and is expected to last about four weeks. Questioned by his lawyer, Musk said by late 2022 he was concerned Sam Altman was trying to “steal the charity.”
China calls US hypocritical for expressing concern over Panama's sovereignty
PANAMA CITY (AP) — The U.S. State Department accused China of violating Panama’s sovereignty over a port dispute in the Central American nation, triggering another fierce back-and-forth on Wednesday as the Chinese government called the Trump administration hypocritical. The most recent spat was triggered in early April when Rubio accused China of “bullying” by detaining or holding up dozens of Panama-flagged ships — though for a short period of time — after the Central American country seized control of two critical ports on the canal earlier this year from a subsidiary of a Hong Kong-based company. “The sovereignty of our hemisphere is non-negotiable,” wrote U.S. Secretary of State Marco Rubio in a statement on Tuesday night.
Amazon reports increased 1Q profits and net sales fueled by cloud computing demand
New York (AP) — Amazon is reporting increased profits and net sales during its fiscal first quarter, helped by surging growth in its prominent cloud computing unit. The e-commerce and technology company said on Wednesday that sales in its Amazon Web Services unit were up by 28% in the January-March period, the fastest increase in 15 quarters. Amazon reported AWS segment sales growth of 24% in the fourth quarter and 20% growth in the third quarter. Investors were closely watching Amazon’s quarterly earnings to see if the company’s $200 billion investment in artificial intelligence, robots, semiconductors and satellites is starting to pay off. The results from the latest quarter underscored that demand keeps growing for Amazon’s services and technology.
