U.S. Economy Posts Stronger First-Quarter Growth Than Previously Thought
The American economy grew at a solid 2.1% annual rate between January and March, according to a final first-quarter estimate released Thursday by the Commerce Department. The figure represents a significant turnaround from the sluggish 0.5% growth recorded in the final three months of 2025, a period weighed down by a 43-day federal government shutdown. The latest report also marks an improvement over Commerce’s earlier estimate of 1.6% growth for the same period. A surge in business investment — likely tied to an artificial intelligence spending boom — helped drive the gains, though consumer spending dropped noticeably compared to the fourth quarter of 2025 and fell short of the department’s previous projections.
Inflation Gauge Hits Three-Year High Amid Rising Gas and Tech Costs
The Federal Reserve’s go-to inflation measure climbed to its highest point in three years in May, driven largely by rising gas prices and more expensive semiconductors and computer equipment fueled by demand for AI technology. The increase signals that affordability pressures could create political headaches for President Trump as midterm elections approach. The Fed has kept its benchmark interest rate on hold throughout the year — a shift from earlier plans to cut rates twice — and some economists now believe the central bank could actually raise rates before the year is out.
Paris Court to Rule on Landmark Climate Case Against Energy Giant TotalEnergies
A court in Paris is preparing to issue a ruling in a major climate change lawsuit targeting energy company TotalEnergies, coming just one day after France experienced record-breaking heat. The case was brought by a coalition of non-governmental organizations and the city of Paris, which argue that the French corporation is violating a 2017 law requiring companies to prevent human rights abuses — the first time that law has been applied to a climate-related claim. Plaintiffs are asking the court to order TotalEnergies to cut oil production by 37% and gas production by 25% by 2030, and to halt all new fossil fuel development.
New Nonprofit Launches $500 Million Push to Retrain Workers Displaced by AI
A newly formed bipartisan nonprofit organization is stepping in to help American workers who lose their jobs due to artificial intelligence. The group, called RAISE US, is kicking off its efforts with more than $500 million earmarked for education and job training programs at the state level. A study by the Boston Consulting Group found that more than half of all U.S. jobs could be significantly changed by AI in the coming years. Former Commerce Secretary Gina Raimondo and former Indiana Governor Eric Holcomb co-founded the organization. Initial programs are planned for Arkansas, Maryland, Utah, and Connecticut. Raimondo said the goal is for these states to test approaches that Congress could eventually turn into national policy.
