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Category: Economics/Business

After months of debating rate cuts, Fed shifts toward mapping out rate hikes

After months of debating rate cuts, Fed shifts toward mapping out rate hikes

The Wall Street Journal reports: The Federal Reserve’s internal debate over interest rates has turned a corner. Officials are no longer arguing about when to resume cutting. Instead, they are starting to talk about the conditions that would warrant a hike. The shift came further into view on Friday, when three Fed bank presidents released statements explaining why they had objected on Wednesday to language characterizing the central bank’s next likely move as a cut. Depending on how the economy…

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America will pay dearly for its energy arrogance

America will pay dearly for its energy arrogance

Gregory Brew writes: Even if the Strait of Hormuz reopens, markets will remain on edge, waiting to see if Iran closes it once more. Oil coming out of the Gulf will be viewed as more risky — and likely more expensive as a result. Countries will almost certainly rethink their energy security plans and shift their economies away from dependence on imports, including of oil and natural gas. This could prove to have the most profound consequences for the United…

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The last days of Butter Ridge Farm

The last days of Butter Ridge Farm

Eli Saslow writes: Their farm was called Butter Ridge, 326 acres of pastoral valleys and rolling hillsides just south of the New York State border. From his house at the top of the ridge, Brad’s father, Brian, could turn in every direction and see land that his family had once farmed. His grandfather Ivan Watson had run a large dairy operation just to the west, near the Susquehanna River. Ivan’s nine children had all gone on to become dairy farmers,…

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Supreme Leader says Iran is planning for ongoing control of Strait of Hormuz

Supreme Leader says Iran is planning for ongoing control of Strait of Hormuz

The New York Times reports: Iran’s supreme leader issued a rare statement on Thursday saying that the United States had no place in the future of the Persian Gulf region and making clear that his country planned to manage the strategic Strait of Hormuz waterway going forward. In the defiant message, Ayatollah Mojtaba Khamenei also vowed that Iran would retain its nuclear capabilities. The lengthy statement from the Iranian leader, who has not been seen in public since he was…

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Pakistan opens up road trade routes into Iran amid Hormuz blockade

Pakistan opens up road trade routes into Iran amid Hormuz blockade

Al Jazeera reports: Pakistan has opened six overland transit routes for goods destined for Iran, formalising a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz. The Ministry of Commerce issued the Transit of Goods through Territory of Pakistan Order 2026 on April 25, bringing it into immediate effect. The order allows goods originating from third…

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Demand destruction: How the Iran war could rattle or break the U.S. economy

Demand destruction: How the Iran war could rattle or break the U.S. economy

CNN reports: At its linguistic core, the two-word phrase “demand destruction” feels severe, harsh, maybe even violent. In practice, that’s not far off: It means that the magnitude of a price shock can be so large, so persistent and so painful that spending behaviors shift – sometimes to the point where they permanently alter the course, the structure and the stability of a sector or an entire economy. Earlier this month, the International Energy Agency warned that in the wake…

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U.S. national debt tops 100% of GDP

U.S. national debt tops 100% of GDP

The Wall Street Journal reports: The U.S. national debt now exceeds 100% of gross domestic product, crossing a once-unthinkable threshold, on the way toward breaking the record set in the wake of World War II. As of March 31, the country’s publicly held debt was $31.265 trillion, while GDP over the preceding year was $31.216 trillion, according to data released Thursday. That puts the ratio at 100.2%, compared with 99.5% when the last fiscal year ended Sept. 30. That figure…

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‘There’s a day of reckoning coming’: Energy experts expect another spike at the pump

‘There’s a day of reckoning coming’: Energy experts expect another spike at the pump

Politico reports: Energy experts say another oil price spike is coming — and it may be made worse by the president’s social media posts. President Donald Trump has repeatedly spurred temporary dips in oil prices by claiming on Truth Social that the Iran war is near an end and that U.S. oil production would ensure sky high gas prices would soon retreat. The jawboning has mostly worked. Even as the global price of oil has crept up over $100 per…

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Middle East crisis could cost world $1 trillion while oil firms make ‘obscene’ profit, analysis finds

Middle East crisis could cost world $1 trillion while oil firms make ‘obscene’ profit, analysis finds

The Guardian reports: The Middle East oil and gas crunch will impose as much as a trillion dollars of additional costs on the global economy while petroleum companies rake in spectacular profits from elevated fuel prices, analysis has revealed. The uneven distribution of risk and reward comes amid rising concern that the US-Israeli attack on Iran is worsening inequality, poverty and hunger across a world that has become dangerously dependent on fossil fuels. Even if the strait of Hormuz swiftly…

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How the UAE’s decision to leave OPEC could recast the Middle East

How the UAE’s decision to leave OPEC could recast the Middle East

Patrick Wintour writes: The United Arab Emirates’ decision to walk out of Opec is a political as much as business decision, and will reignite the simmering rows between the UAE and Saudi Arabia – which had been covered up by their shared anger with Iran over its attacks on the Gulf states since the start of the US-Israel war on Tehran. In the short term, leaving the oil producing cartel it joined in 1967 gives the UAE the freedom to…

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The U.S. started the war against Iran. The rest of the world is suffering the consequences

The U.S. started the war against Iran. The rest of the world is suffering the consequences

The New York Times reports: The fallout from two months of war in Iran is shuttering textile mills in India and Bangladesh, grounding airplanes in Ireland, Poland and Germany, and prompting energy rationing in Vietnam, South Korea and Thailand. The only country, it seems, that has been relatively spared from the economic chaos is the one that started the war: the United States. While warning signs of a recession are flashing across countries in Asia and Europe, the United States…

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The billion-barrel Hormuz oil shock is about to crash demand

The billion-barrel Hormuz oil shock is about to crash demand

Bloomberg reports: The Strait of Hormuz oil shock has yet to crash demand as the rich world borrows from its stocks and pays up to secure supply. Traders are now sounding the alarm that a harsh adjustment is coming. The longer the vital oil channel doesn’t reopen, traders say, the more consumption is going to have to recalibrate lower to align with supply that’s dropped at least 10%. And for that to happen, people will have buy less, either through…

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Lockheed Martin CEO tells investors war-driven boost in defense spending presents ‘golden opportunity’

Lockheed Martin CEO tells investors war-driven boost in defense spending presents ‘golden opportunity’

The Street reports: There’s a phrase that doesn’t come up often in defense contractor earnings calls: “golden opportunity.” It’s the kind of language that gets people’s attention. Lockheed Martin (LMT) CEO Jim Taiclet used it anyway. Speaking to investors on the company’s first-quarter 2026 earnings call Thursday, April 23, Taiclet did not attempt to be subtle about what the current political environment means for the world’s largest defense contractor. With the Iran war driving Pentagon spending, a Trump administration that…

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The AI industry is discovering how much it is hated by the public

The AI industry is discovering how much it is hated by the public

The New Republic reports: On April 10, the house of OpenAI CEO Sam Altman was attacked with a Molotov cocktail by 20-year-old Daniel Moreno-Gama. The suspect, who was arrested the same day, had written a manifesto warning of the existential threat of artificial intelligence. In his missive, he advocated for killing the CEOs of AI companies, and he referred to himself as “butlerian jihadist” on Instagram (a reference to a war against machines in Frank Herbert’s Dune universe). Three days…

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‘The damage is done’: Global oil crisis has changed fossil fuel industry for ever, IEA chief says

‘The damage is done’: Global oil crisis has changed fossil fuel industry for ever, IEA chief says

The Guardian reports: The oil crisis triggered by the Iran war has changed the fossil fuel industry for ever, turning countries away from fossil fuels to secure energy supplies, the world’s leading energy economist said. Fatih Birol, the executive director of the International Energy Agency (IEA), also said that, despite pressure, the UK should forgo much of its potential North Sea expansion. Speaking exclusively to the Guardian, Birol said a key effect of the US-Israel war on Iran was that…

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World’s top producer of condoms raises prices by up to 30% as Iran war rattles supply chains

World’s top producer of condoms raises prices by up to 30% as Iran war rattles supply chains

The New York Times reports: The world’s largest condom maker is raising prices of its products by up to 30 percent, warning that shortages of raw materials and chemicals because of the Iran war could disrupt production. The Malaysian condom company, Karex, which produces about five billion condoms a year, blamed a surge in raw material prices, global shipping disruptions and higher freight costs for the price increases. The de facto closure of the Strait of Hormuz has led to…

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