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.
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.
Oil prices keep spurting higher, but US stocks hold near their records
NEW YORK (AP) — More jumps for oil prices sent tremors through the bond market, along with hints that some Federal Reserve officials don’t want to cut interest rates any time soon. But fat profit reports from big companies helped the U.S. stock market remain resilient Wednesday. The S&P 500 edged down by less than 0.1%, a day after slipping from its latest all-time high. The Dow dropped 0.6%, while the Nasdaq composite inched up less than 0.1%. The price for a barrel of Brent crude jumped nearly 6%. Treasury yields climbed as traders erased nearly all their bets for a cut to rates by the Fed this year.
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.
Democrats investigate as Trump OKs almost $2 billion in taxpayer money to end offshore wind projects
The Trump administration is spending nearly $2 billion to get energy companies to walk away from U.S. offshore wind projects. Now Democrats in Congress are investigating. The Republican administration adopted its strategy after federal courts thwarted President Donald Trump’s efforts to stop offshore wind development through executive action. House Democrats are now demanding information about the first and the largest of the three agreements that have been announced. A French company is getting $1 billion if it invests the money in fossil fuel projects instead. That's essentially a refund of the company's leases for projects off North Carolina and New York.
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.
Families of Canada school shooting victims sue OpenAI over shooter's use of ChatGPT
The families of victims of a school shooting in a remote Canadian Rockies town are suing artificial intelligence company OpenAI in a U.S. federal court, alleging that the ChatGPT maker failed to alert police to the shooter’s alarming interactions with the chatbot. A lawsuit filed Wednesday on behalf of 12-year-old Maya Gebala, who was critically injured in the February shooting, is among the first of more than two dozen cases coming from families in Tumbler Ridge, British Columbia, in what their lawyers say represents an “an entire community stepping forward to hold OpenAI accountable.” Six other lawsuits filed Wednesday in San Francisco federal court allege wrongful death claims on behalf of five children and an educator killed in Canada’s deadliest mass shooting in years.
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.
