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  • Big US tech stocks swing as investors probe AI spend

    Big US tech stocks swing as investors probe AI spend

    On Wednesday, the four largest technology giants in the United States — Meta Platforms, Alphabet, Microsoft, and Amazon — dropped their first-quarter 2026 earnings reports simultaneously, triggering wild fluctuations in their share prices as investors weighed in on the companies’ combined half-trillion-dollar commitment to artificial intelligence development.

    The wave of massive AI investment has already forced organizational restructuring: both Meta and Amazon have implemented large-scale layoffs in recent months to free up capital for their AI ambitions, a cost-cutting move that underscores how seriously the industry is prioritizing the emerging technology over near-term operational expenses.

    Investor uncertainty over whether these massive outlays will translate to sustainable, long-term revenue growth has hung over the sector for months, and Wednesday’s mixed earnings results did little to resolve that debate. Meta, the parent company of Facebook, Instagram, and WhatsApp, framed the quarter as a milestone, pointing to rising user engagement across its apps and the launch of a breakthrough new generative AI model. But that positive news was immediately overshadowed by an unexpected upward revision to the company’s 2026 capital expenditure forecast. Meta now projects full-year capital spending will hit a maximum of $145 billion, up $10 billion from its earlier guidance, with almost all of the increase earmarked for AI infrastructure and research projects. The news sent Meta’s shares tumbling more than 5% in extended trading after the report release.

    Alphabet, Google’s parent company, delivered the only clear positive surprise of the day. The company reported a 30% year-over-year jump in net profits, with its Google Cloud division notching a 63% revenue increase — growth that executives directly tied to rising enterprise demand for AI-powered cloud services. In prepared remarks, CEO Sundar Pichai highlighted that the company’s years of early AI investments and full-stack development approach are now driving gains across every segment of its business. The tangible links between AI spending and bottom-line growth resonated with investors, pushing Alphabet’s shares up nearly 6% in after-hours trading.

    Microsoft, which has poured more than $10 billion into its partnership with OpenAI, beat analyst consensus revenue and profit expectations: revenue climbed 16% year-over-year to $83 billion, while net profits rose 23% to $38 billion. Even so, the company’s aggressive AI spending hit free cash flow hard, which fell almost $6 billion from the same period a year ago to $15.8 billion — a key metric that worries investors tracking how quickly the company is burning through capital to scale AI. CEO Satya Nadella touted the company’s growing AI business, noting the annual run rate for its AI offerings has hit $37 billion, but stopped short of disclosing the base sales figure used to calculate that forward-looking projection. Microsoft’s stock fell nearly 2% in extended trading, and is down roughly 11% for 2026 to date amid ongoing investor questions about its AI spending trajectory. Microsoft’s stock fell 2% after the release.

    Amazon’s shares slipped 1.6% after the company released results that matched analyst expectations, but issued a weaker-than-anticipated second-quarter earnings outlook. The e-commerce and cloud giant reported a 15% year-over-year increase in profits, and its Amazon Web Services cloud division grew 28% — the fastest pace of growth the unit has posted in more than four years. CEO Andy Jassy highlighted the company’s fast-growing in-house AI chip manufacturing business, saying the annual run rate for the segment currently sits at $20 billion, though like Microsoft, Amazon declined to share the underlying sales data behind that projection. Earlier in 2026, Amazon announced it would ramp up full-year AI spending to $200 billion, up from $125 billion in 2025. In prepared remarks ahead of the company’s earnings call, Jassy struck an optimistic tone, saying “We’re in the middle of some of the biggest inflections of our lifetime, we’re well positioned to lead, and I’m very optimistic about what’s ahead for our customers and Amazon.”

    Across the sector, the collective planned AI spending from the four firms this year exceeds $500 billion, a figure that has left investors split on whether the unprecedented investment will pay off in the form of transformative revenue growth, or turn into a costly capital drain that erodes near-term margins for years to come.

  • Kenya gives a hero’s welcome to marathon record breaker Sabastian Sawe

    Kenya gives a hero’s welcome to marathon record breaker Sabastian Sawe

    NAIROBI, Kenya — When the aircraft carrying Sabastian Sawe, the first marathon runner in history to crack the iconic two-hour mark, touched down at Nairobi’s Jomo Kenyatta International Airport on Wednesday, Kenya rolled out a celebratory welcome fit for a national hero, opening with a dramatic water cannon salute to greet the plane carrying its newly-minted sporting legend.

    Sawe, who etched his name into the record books at Sunday’s London Marathon with a winning time of 1 hour 59 minutes 30 seconds, was greeted on the tarmac by his proud parents and Kenyan Sports Minister Salim Mvurya. Mvurya lauded the athlete’s unprecedented achievement, framing the historic milestone as a triumph for the entire East African nation long renowned for producing world-class distance runners.

    This 30-second break below the once-unthinkable two-hour threshold smashed the previous men’s marathon world record by a staggering 65 seconds, a gap rarely seen in modern elite distance running. Before stepping off the plane, Sawe told the Associated Press he felt immense pride in pulling off what many in the sport had viewed as an impossible feat for generations. Far from resting on his laurels, the 2024 Valencia Marathon champion already has his sights set on more progress: he says he plans to push his limits even further to shave additional time off his own new record.

    Following his disembarkation, Sawe was adorned with a traditional handcrafted victory wreath woven from local twigs, a cultural honor marking his historic win. A troupe of traditional Kenyan dancers performed in his honor, singing songs celebrating his breakthrough before he entered a waiting luxury government vehicle for the procession into the city. Mvurya confirmed that the country will continue its celebrations with a formal national honoring event for Sawe on Thursday.

    In interviews with the AP, Sawe’s family opened up about seeing his natural running talent from his earliest childhood. His mother Emily Sawe recalled even noticing his unusual speed decades ago, when he would sprint around during childhood bath time. “He would run too fast. So, I would say to myself, this boy will shine for me one day,” she shared.

    His father, Simion Kiplagat Sawe, watched the historic London Marathon at his brother’s home, as his own television did not have a clear enough signal to broadcast the race live. He told reporters he was so overcome with emotion when his son pulled into the lead that he stepped outside before the finish line, and only watched the winning moment on a replay after the race. “I was so happy, extremely happy. We screamed so much that now it is hard to swallow anything,” he said.

    Sawe’s path to professional running began thanks to his uncle, Abraham Chepkirwok, an elite athlete who represented Uganda in the 800-meter event at the 2008 Beijing Olympic Games. Before making history in London, Sawe already notched a major win at the 2024 Valencia Marathon, where he finished with a time of 2:02:05, and entered Sunday’s London race as the defending champion. His father echoed Sawe’s own drive for continued improvement, noting that the athlete’s disciplined and determined mindset has been key to his success. “Even now, he still says that record was not enough; he wants to lower it further,” his father said.

  • In Gaza, life flickers as power cuts shatter livelihoods and healthcare

    In Gaza, life flickers as power cuts shatter livelihoods and healthcare

    Gaza City, Palestine — When 34-year-old baker Abrar Abdu pulled open the door of her oven after hours of careful preparation, she was left speechless. In her small, dimly-lit workshop, the only light came from her phone’s flashlight, which cast a shadow over 27 completely ruined cakes, destroyed by an unexpected power outage that left her aging oven malfunctioning.

    Abdu is one of thousands of Palestinian small business owners navigating Gaza’s escalating total energy crisis, a disaster that has unfolded since Israel cut all power connections to the 2.2 million-person enclave at the start of its military campaign in 2023. The territory’s only power plant ceased operations on October 11 that year, after running out of fuel under a strict Israeli blockade on energy imports. Today, Gaza remains trapped in near-total darkness, with most residents relying on expensive, overstretched private generators or limited, costly solar infrastructure just to access basic power.

    For Abdu, the latest power failure was a devastating blow that wiped out months of slow progress toward rebuilding her small cake shop after the war. She was forced to issue apologies to waiting customers, refund all orders, and absorb the full cost of spoiled ingredients, a loss she says has pushed her business to the edge of collapse. “I have incurred devastating financial losses due to the chronic instability of the electricity generators,” Abdu told Middle East Eye in an interview, adding that the crisis threatens not just her own livelihood, but the incomes of her small team of employees.

    Even after the October 2025 ceasefire agreement, Israeli restrictions on fuel and critical equipment imports remain fully in place, deepening the humanitarian crisis and derailing fragile efforts to rebuild civilian life. Abdu explained that the dependence on overpriced commercial generators has created a constant cycle of financial stress: at one point, the business was forced to halt production for nine straight days due to repeated generator breakdowns. “This leaves us in a constant struggle against financial ruin, the loss of our clientele, and the burden of paying workers who support their families amid extreme poverty,” she said.

    The crisis hits hardest at Gaza’s already crippled healthcare system, which has been left on the brink of collapse after repeated Israeli attacks and restrictions on medicine and medical equipment. Hospitals across the strip are almost entirely dependent on generators to keep critical care units running, but years of blockade and the intensification of the energy crisis have left this infrastructure failing. Mohammed Abu Salmiya, director of Gaza’s Al-Shifa Medical Complex, said key generator components have worn down completely, and entire units have stopped operating due to constant mechanical strain, a lack of spare parts, and shortages of specialized maintenance oil.

    Abu Salmiya described conditions inside the hospital as “tragic,” with frequent generator failures disrupting life-saving services including intensive care units, neonatal incubators, and dialysis centers. “These departments cannot afford even a minute of downtime. Consequently, we have been forced to shut down non-critical wards to keep life-saving sections operational,” he told MEE. Hundreds of patients waiting for scheduled surgeries now face indefinite delays, as hospital administrators are forced to prioritize only the most urgent, life-threatening cases. Fluctuating, unstable power has also permanently damaged thousands of pieces of sensitive medical equipment, which require a consistent energy flow to operate safely.

    The Association of Generator and Alternative Energy Owners in Gaza has issued repeated urgent warnings in recent weeks over the growing shortages of mineral oil and spare parts, warning that the entire system is on the edge of total failure. “If the current situation persists, Gaza will sink into total darkness,” said Mustafa Abu Hassira, a senior official with the association. “If these generators continue to fail without the necessary oils and parts for maintenance, people will have neither water nor light in their homes. This will paralyze what remains of commercial and industrial activity.”

    Abu Hassira noted that Gaza has endured an Israeli-led technical blockade for nearly 20 years, after Israeli forces bombed the main transformers of the territory’s only power plant and imposed a full blockade in 2006. For decades after that, residents relied on a patchwork of aging private generators, with access to just a few hours of power per day. “We have endured a technical blockade for 15 years, during which we were prevented from importing new generators. But the real collapse began when this war started,” he said. “Most of the vital generators in the strip have been destroyed, and operational infrastructure has been targeted, leaving us with a stark reality: no spare parts, no mineral oils, and no prospect of repair.”

    With no access to proper maintenance supplies, generator owners have been forced to use makeshift alternatives including industrial diesel and even cooking oil, which speeds up engine wear and causes irreversible damage. Abu Hassira reported that of the 150 large generators that once provided basic power for public services across Gaza, roughly 60 have now stopped working entirely, and the number of failed units grows every day. Prices for the few remaining supplies of proper mineral oil have skyrocketed from 14 shekels per litre to 1,500 shekels per litre, putting it out of reach for most small operators. “We are not just facing an electricity crisis; we are facing total paralysis that will dismantle what remains of the local economy and cut off the basic necessities of life,” he added.

    The energy crisis has now spilled into every corner of civilian life, even affecting transportation across the strip. With fuel and maintenance parts impossible to import, around 70 percent of Gaza’s vehicles were destroyed during the war, and the remaining fleet is at risk of total collapse, according to Anas Arafat, spokesperson for Gaza’s Ministry of Transport and Communications. Restrictions on spare parts, oil, and tyres have left the surviving vehicles vulnerable to permanent breakdown, Arafat explained, warning that the impact extends far beyond civilian travel: “Without them, ambulances cannot transport the wounded, water trucks cannot distribute supplies, and the generators powering hospitals and bakeries will fail. The wheels of life in Gaza may stop at any moment unless this crisis is resolved urgently.”

    For Abdu, the crisis comes after she made a painful effort to rebuild her business following the war. Her bakery was forced to shut down when she and her family were displaced, and it was only after the 2025 ceasefire that they were able to return to Gaza City, repair the damaged workshop, and restart operations after four months of work. “We invested thousands to repair our ovens and refrigerators. After nearly four months, we managed to reopen despite the challenges,” she said.

    Solar power, the only alternative to private generators, remains out of reach for most small business owners like Abdu, with a basic setup costing as much as 5,000 shekels ($1,400) — a sum most cannot afford. Unstable power has already damaged her ovens and refrigerators, adding more unexpected costs to an already strained budget. “We continue to bleed money due to power outages while paying more for raw materials than larger businesses,” she said. “Our suffering as we try to rebuild from the ashes remains invisible.”

  • UK: Starmer condemns antisemitic attack after two Jewish men stabbed in London

    UK: Starmer condemns antisemitic attack after two Jewish men stabbed in London

    A violent stabbing incident that left two Jewish men seriously injured has shaken Golders Green, a majority-Jewish residential neighborhood in northwest London, with a suspect taken into custody following a rapid intervention by local Jewish community security volunteers. On Wednesday afternoon, members of Shomrim, the neighborhood Jewish security patrol, detained the attacker before official police forces arrived to take him into formal custody, according to initial incident reports. Immediately after the assault, the two wounded men received urgent on-site care from Hatzola, a Jewish volunteer emergency ambulance service, before being transported to local hospitals for further treatment for their serious injuries. In the wake of the attack, UK Prime Minister Keir Starmer issued a forceful condemnation of what he labeled an unambiguously antisemitic act of violence. “The antisemitic attack in Golders Green is utterly appalling,” Starmer stated, extending public gratitude to both the community volunteer groups and law enforcement for their fast response. “Attacks on our Jewish community are attacks on Britain,” the prime minister emphasized, adding that all those responsible for the violence would face full legal accountability. This assault comes at a moment of growing national crisis, as the United Kingdom has recorded a dramatic surge in antisemitic hate crimes across the country in recent months. Over the past 30 days alone, London’s Metropolitan Police has launched investigations into dozens of suspected antisemitic incidents, including multiple acts of arson targeting Jewish community spaces. Just one week prior to the Golders Green stabbing, on April 15, an arson attack damaged a synagogue in Finchley, another north London neighborhood with a large Jewish population. Two additional suspected arson attacks targeting Jewish sites in the capital followed within days of the Finchley incident. Security and community officials link the sharp rise in antisemitic violence to heightened geopolitical tensions following the U.S.-Israeli military strike on Iran earlier this year, which has coincided with a surge in hate speech and targeted attacks against British Jewish communities. In an official statement released on April 20, Security Minister Dan Jarvis outlined new government measures to address the growing threat. Jarvis confirmed that the UK government has allocated an extra £5 million ($6 million) in the current financial year to fund the deployment of specialist security officers to high-risk locations across the country, to better protect vulnerable faith communities. “The government’s commitment to supporting British Jews is an enduring one,” Jarvis said. “We are taking firm steps to root out antisemitism wherever it appears across public life – from our public services to our universities, charities and beyond.”

  • Alleged Trump assassin took selfie moments before attack: prosecutors

    Alleged Trump assassin took selfie moments before attack: prosecutors

    Court documents made public this week have laid bare chilling new details of an alleged assassination plot targeting former U.S. President Donald Trump, revealing that the suspect snapped a selfie in his hotel room just minutes before launching an armed attack at a high-profile Washington media gala. Prosecutors outlined the sequence of events in a federal court filing submitted Wednesday, laying out the premeditated steps 31-year-old Cole Allen, a highly educated California teacher, took in his bid to attack Trump and senior members of his administration.

    According to the filing, Allen’s attempted attack unfolded shortly after 8:30 p.m. this past Saturday. After traveling from California to the nation’s capital via a scenic cross-country train route through Chicago, Allen checked into the Washington Hilton, where the annual media gala was set to take place in the hotel’s basement ballroom. Court records show that before leaving his room, Allen spent his final pre-attack minutes reviewing online updates of Trump’s public schedule, assembling a weapons arsenal that included a pump-action shotgun, a handgun, multiple knives, and ammunition, and posing for a mirror selfie captured on his cellphone. The surviving photograph shows Allen dressed in all black with a red tie, visibly carrying a knife, a shoulder holster for his handgun, and an ammunition bag.

    Before departing his room, Allen had pre-scheduled an email to be sent to his friends and family that contained a manifesto justifying his planned attack, which prosecutors described as an act of “unfathomable malice.” In the message, Allen laid out a ranked target list of Trump administration officials in attendance, prioritizing them from highest to lowest rank, and clarified that he hoped to avoid harming Secret Service agents, other law enforcement officers, or innocent hotel guests. Court documents also show Allen documented his surprise at the hotel’s lax security during his stay, writing on his personal phone that he had walked into the building with multiple weapons without any staff raising a single red flag. During his train journey, he even took time to note his appreciation for the changing American landscape, writing that the woodlands of Pennsylvania looked like “vast fairy lands filled with tiny trickling creeks.”

    Once he reached the hotel entrance near the ballroom, Allen discarded his outer long coat, drew his shotgun, and sprinted through a set of building metal detectors. Prosecutors confirm Allen fired the shotgun toward the stairs leading down to the ballroom, where Trump and other senior officials were already gathered. A responding Secret Service agent returned fire, shooting five times but missing Allen entirely. The suspect fell to the ground during the chaotic aftermath, suffered only a minor knee injury, and was quickly tackled and detained by security personnel. No bystanders or attendees were killed in the incident.

    The new details emerged as part of a prosecution request to a Washington federal court to deny bail for Allen, arguing he should remain in custody ahead of his trial. Prosecutors noted that Allen’s political motivation for the attack would persist as long as he maintains ideological disagreement with the U.S. government, making him a continued danger to the community if released.

    This incident marks the third alleged assassination attempt targeting Trump in less than two years. Following the attempt, the White House has blamed Democratic political leaders and national media outlets for inciting political extremism against the former president. At the same time, the 79-year-old Trump has drawn widespread criticism for breaking decades of Washington political norms with his consistent violent rhetoric directed at political opponents, journalists, foreign leaders, and immigrants.

  • Comey’s seashell post got him indicted. But experts are skeptical the government can win

    Comey’s seashell post got him indicted. But experts are skeptical the government can win

    Political observers experienced a striking sense of déjà vu this week, as the U.S. Department of Justice unveiled a new criminal indictment against former FBI Director James Comey, accusing him of threatening former President and current 2024 candidate Donald Trump in a social media post. The indictment follows a nearly identical procedural arc to a 2025 case against Comey that was ultimately thrown out by a federal judge, and it has already sparked widespread debate over political motivation, free speech protections, and the strength of the government’s legal argument.

    Hours after the indictment was made public, Comey released a pre-recorded video on social media pushing back against the charges. By Wednesday, the former FBI chief appeared in person at a federal courthouse to surrender, marking the second time in less than a year he has faced criminal process from the Trump-aligned Department of Justice.

    The current charges stem from an Instagram post Comey shared last year, which featured a photograph of seashells arranged on a beach to spell out the numbers “86 47”. Prosecutors argue the sequence constitutes a direct threat to Trump: “47” is widely associated with Trump’s expected status as the 47th U.S. President if he wins the 2024 election, while “86” is a slang term originating in the restaurant industry that the DOJ claims carries a meaning of causing harm or removing a person. In the government’s framing, “a reasonable recipient who is familiar with the circumstances would interpret [the post] as a serious expression of an intent to do harm to the President of the United States.”

    Comey faces two felony counts: one count of threatening to harm the sitting president, and a second count of digitally transmitting that alleged threat. Comey has long pushed back on the interpretation of his post. Shortly after sharing the original image, he deleted it and posted a follow-up explanation, noting he had encountered the naturally arranged seashells during a beach walk and recognized it as a political message, but had never intended to signal violence. “I didn’t realize some folks associate those numbers with violence. It never occurred to me, but I oppose violence of any kind so I took the post down,” he wrote at the time. He has repeated that defense in the wake of this week’s indictment.

    Legal experts across the ideological spectrum have cast significant doubt on the government’s ability to secure a conviction, echoing the skepticism that greeted the 2025 charges against Comey. To win a guilty verdict, prosecutors must clear multiple high legal bars, starting with proving the post qualifies as a “true threat” — a standard the U.S. Supreme Court has defined as a statement that conveys a serious intent to commit unlawful violence. Prosecutors must also demonstrate Comey acted recklessly, and that he understood his post would be interpreted as a serious threat of harm.

    “It’s a very weak indictment, and it doesn’t seem to me that it’s a chargeable case,” said Evan Gotlob, a former federal prosecutor and current partner at law firm DarrowEverett. “This seems fit to get dismissed at some point.”

    Barbara McQuade, a former U.S. Attorney for the Eastern District of Michigan who now teaches law at the University of Michigan, noted that the multiple common definitions of “86” and Comey’s explicit denial of violent intent make an unanimous guilty verdict from a jury extremely unlikely. “I can’t imagine that 12 jurors will be able to find Comey guilty unanimously beyond a reasonable doubt,” McQuade told the BBC.

    Even conservative legal scholars who have previously aligned with Trump and criticized Comey have questioned the indictment. Jonathan Turley, a prominent conservative commentator who has repeatedly backed Trump in legal disputes, wrote in a Fox News column that despite his longstanding criticism of Comey, he believes the current indictment is facially unconstitutional under the First Amendment’s free speech protections, unless the government holds undisclosed damaging evidence that has not yet been made public. “I would prefer to crawl into one of Comey’s seashells than write a column supporting him,” Turley wrote. “However, here we are. The fact is that I believe that this indictment is facially unconstitutional, absent some unknown new facts.”

    Comey’s legal team has already signaled they will likely move to dismiss the charges on the grounds of vindictive prosecution, the same argument they successfully used to challenge the 2025 indictment.

    Department of Justice and FBI leaders have strongly pushed back against claims of political motivation, noting the investigation stretched on for roughly 10 months before a grand jury voted to approve the indictment. Acting Attorney General Todd Blanche defended the charges in an interview with CBS News, noting the indictment was unveiled just days after an armed attacker targeted Trump and other senior administration officials at the White House Correspondents’ Dinner – the third documented assassination attempt against Trump in two years, following a 2024 rally shooting where Trump was grazed by a bullet and a separate incident where an armed man was found staking out Trump’s Florida golf course.

    “Of course, it’s serious when you threaten the president of the United States,” Blanche said. “Anybody that tries to put forward some narrative that this is just about seashells, or something to the contrary is missing the point. You cannot threaten the president of the United States.” Blanche emphasized the charges were “absolutely, positively not” driven by political considerations.

    FBI Director Kash Patel echoed that defense at a press briefing, stressing that the lengthy investigation and grand jury approval process demonstrate the case was not rushed or politically motivated. Not all Republican lawmakers have backed the prosecution, however: while some, like Pennsylvania GOP Representative Dan Mauser, called Comey’s post “concerning” and agreed it could be interpreted as a violent threat, other GOP members have declined to publicly endorse the indictment, mirroring the skepticism seen among some conservative legal circles.

  • Four key takeaways from Jerome Powell’s last rate decision as Fed chair

    Four key takeaways from Jerome Powell’s last rate decision as Fed chair

    In a widely anticipated final policy meeting as Federal Reserve Chair, Jerome Powell has announced the central bank will keep benchmark U.S. interest rates unchanged within a target range of 3.5% to 3.75%. The announcement comes just hours after his expected successor, Kevin Warsh, secured approval from the Senate Banking Committee, clearing a critical legislative hurdle ahead of his expected confirmation next month.

    This decision to hold rates steady comes amid sustained public and political pressure from former President (current President-elect, depending on context) Donald Trump, who has repeatedly pushed the Fed to slash borrowing costs throughout his tenure in office, and openly criticized Powell’s leadership for years. While Warsh is expected to face identical pressure once he assumes the top role, the nominee has publicly committed to protecting the long-held independence of the U.S. central bank from political interference.

    Four major key takeaways emerged from Wednesday’s landmark policy session, a turning point for the future of U.S. monetary policy. First, the Fed has maintained its cautious “wait-and-see” stance amid mounting economic uncertainty triggered by the ongoing Middle East conflict between the U.S. and Iran linked to the Israel war. The conflict has already driven global energy prices sharply higher, passing higher costs onto consumers at gasoline pumps and grocery store checkout lines. Against this volatile backdrop, Fed policymakers concluded holding rates steady was the optimal move until clearer details emerge on how long the conflict will persist and the full scope of its economic fallout.

    Hopes for an imminent interest rate cut were also dampened by newly released inflation data: March’s annual inflation rose unexpectedly to 3.3%, the highest reading recorded since May 2024. Despite the upside surprise, the Fed’s post-meeting statement signaled a rate cut remains on the table for the next policy session. That timeline could shift, however, according to Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. Tombs noted that Wednesday’s fresh jump in oil prices, driven by expectations that the U.S. will maintain its long-term blockade of Iranian ports, could push any rate cut back into 2026.

    For context, central banks typically adjust interest rates to balance inflation and growth: higher rates curb consumer spending to cool rising prices, while lower rates stimulate spending and investment to support job creation and economic expansion during slowdowns.

    Third, while this was Powell’s final policy meeting as chair, his tenure as a member of the Fed’s Board of Governors does not expire until 2028. Powell confirmed Wednesday he will remain on the central bank’s board until the Trump administration’s investigation into him and the Fed is “well and truly over.” Though U.S. Attorney for the District of Columbia Jeanine Pirro has stated the probe will be closed, Powell noted he expects Pirro “would not hesitate to restart the investigation” if circumstances allow. “I’ve said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that,” Powell added.

    The decision to stay on is almost certain to disappointing the sitting president, who has clashed repeatedly with Powell throughout his term. Powell’s continued presence on the board could lead to heightened scrutiny of future decisions and public comments from Warsh, but Powell has pledged to maintain a low profile and ruled out any attempt to act as a de facto “shadow chair.” “That is something I would never do,” he emphasized.

    Powell also issued a stark warning that the Trump administration’s “legal assaults” on the central bank go far beyond verbal criticism, and pose a serious threat to the institution’s core function. The outgoing chair argued that the administration’s legal actions against him are “battering the institution and putting at risk the thing that really matters to the public: the ability to conduct monetary policy without taking into consideration political factors.” He added that the legal attacks are “unprecedented in our 113-year history, and there are ongoing threats of additional such actions.”

    The final development centers on Warsh’s confirmation path. After the Department of Justice announced it would drop the probe into Powell, top Republican Senator Thom Tillis lifted his hold on Warsh’s appointment, which he had threatened to stall for weeks. On Wednesday, Tillis joined other Republican members of the Senate Banking Committee to advance Warsh’s nomination to a full Senate vote.

    With Republicans holding a majority in the full Senate, final confirmation is widely viewed as a procedural formality. The only open question is whether the vote will be held in time for Warsh to take office by the end of Powell’s official term as chair on May 15. If confirmed as expected, Warsh will lead his first policy meeting as Fed chair in June.

    Carl Tobias, a chair at the University of Richmond School of Law, told the BBC that both Tillis and Powell deserve credit for defending the central bank’s independence against political pressure from the White House. For his part, Powell offered a warm congratulations to his expected successor Wednesday, wishing Warsh well through the final stage of the confirmation process.

  • King and Queen lay flowers at 9/11 Memorial in New York

    King and Queen lay flowers at 9/11 Memorial in New York

    On the third day of their four-day official state visit to the United States, Britain’s King Charles III and Queen Camilla participated in a solemn, highly secured commemoration at New York City’s 9/11 Memorial, marking the royal couple’s first visit to the site that honors the nearly 3,000 lives lost in the 2001 terrorist attacks.

    Against a backdrop of bright New York sunlight, with the memorial’s iconic reflecting pools framed by Manhattan’s towering skyscrapers, the pair laid a bouquet of white roses alongside a handwritten note signed by both royals. The message paid lasting tribute to those killed in the atrocity, reading: “We honour the memory for those who so tragically lost their lives on 11th September 2001. We stand in enduring solidarity with the American people and in the face of their profound loss.”

    The commemorative event unfolded under extraordinary security measures. A large contingent of local law enforcement deployed across the area, implementing road closures, manned checkpoints, and maintaining constant air coverage with circling helicopters to secure the visit.

    Following the floral tribute, King Charles and Queen Camilla held private meetings with family members of 9/11 victims, and spoke with first responders who led rescue efforts at the World Trade Center site in the immediate aftermath of the attacks. Dignitaries including current New York City Mayor Zohran Mamdani and former mayor Michael Bloomberg joined the royals for the occasion, alongside representatives from victim support charities and educational organizations tasked with preserving the memory of the 2001 attacks for future generations.

    The tribute to 9/11 victims built on remarks King Charles delivered days earlier during a historic address to the U.S. Congress. In that speech, the monarch framed the 2001 attacks as a defining global tragedy, noting that “This atrocity was a defining moment for America and your pain and shock were felt around the whole world.” He highlighted the collective NATO response that saw allied nations rally to support the U.S. in the wake of the attacks, drawing a parallel to the unified resolve NATO must maintain today to defend Ukraine against invasion.

    Beyond the solemn commemorative activities, the state visit’s New York leg included more lighthearted, culturally focused engagements. Long an advocate for global literacy and reading access through her Queen’s Reading Room initiative, Queen Camilla brought a special gift for the New York Public Library: a handcrafted replacement for Roo, the long-lost Winnie the Pooh character that was part of the original set of 1920s stuffed toys that inspired A.A. Milne’s beloved children’s stories. The original set has been on display at the library since 1987, but Roo went missing in the 1930s; the new replica was produced by the same British firm that crafted the original toys.

    Vicki Perrin, CEO of the Queen’s Reading Room charity, joined the royal delegation in New York and used the visit to draw attention to what the organization calls a growing global “reading crisis.” Perrin emphasized that expanding literacy access delivers transformative, far-reaching benefits: “improving rates of literacy and reading has transformative benefits on mental health, brain health and social health.”

    Later the same day, King Charles traveled to Harlem to tour a community initiative focused on expanding access to education and healthy food for local residents. To cap off the day’s events, the royal couple attended a reception celebrating the U.K. and U.S. creative industries, which was set to draw dozens of high-profile figures from film, music, art, and design.

  • Hungary’s next PM says frozen EU funds will be paid out soon

    Hungary’s next PM says frozen EU funds will be paid out soon

    Weeks after ending 16 years of nationalist rule under Viktor Orbán in a landslide election victory, Hungary’s incoming Prime Minister Péter Magyar has already begun urgent high-stakes diplomacy in Brussels to unlock billions of euros in frozen European Union funds, even before his formal swearing-in next month.

    Magyar, whose newly formed Tisza party secured a two-thirds parliamentary supermajority in the April 12 election, held his first in-person talks with European Commission President Ursula von der Leyen during his debut visit to the EU capital. He described the negotiations as “extremely constructive and successful,” leaving confident that long-blocked EU resources will flow to Hungary in the near term.

    For years, more than €32.8 billion in combined EU recovery, cohesion, and defense funding has been frozen over the Orbán government’s documented democratic backsliding, systemic corruption, and repeated clashes with EU rule of law standards. On top of the frozen allocations, Hungary has been forced to pay €1 million in daily fines for violating EU migration policies, a penalty Magyar has vowed to end.

    The most pressing deadline facing the incoming government is the expiration of the €10.4 billion EU Covid-19 recovery fund at the end of August. If Budapest fails to meet a pre-set series of anti-corruption and judicial reform milestones by that date, Hungary will lose access to the allocation permanently. Beyond the recovery funds, an additional €6.3 billion in cohesion funds remains blocked over rule-of-law concerns, while another €16.1 billion in low-interest EU defense loans is available once reforms are implemented.

    Magyar moved quickly to reassure both Brussels and Hungarian voters that unlocking the funds will not require concessions harmful to national interests. He emphasized that the unblocked billions will provide a much-needed boost to Hungary’s stagnant economy, which has recorded near-flat growth for three consecutive years. Márton Hajdu, a senior Tisza party official, outlined the straightforward conditions Brussels has required: independent judiciary free from government interference and robust measures to eliminate public sector corruption. While Magyar is pushing for a rapid agreement scheduled to be signed during his return to Brussels on May 25, analysts note the incoming government faces a steep challenge to deliver on the required reforms in such a compressed timeline.

    Von der Leyen struck a collaborative tone after the meeting, saying the European Commission stood ready to support Magyar’s government as it works to realign Hungarian policy with shared European values. Magyar also held talks with European Council President António Costa, and reaffirmed Hungary’s unwavering place in the European Union in a post-meeting social media statement.

    Not yet sworn in until May 9, Magyar has already moved at a breakneck pace to reset Hungary’s relationship with the EU: just two days after his election win, he placed a personal call to von der Leyen to press for progress on fund release. Beyond economic and EU policy, the new government is also moving to repair strained ties with Ukraine. Orbán’s long-held veto on a €90 billion EU loan package for Ukraine was lifted last week at an informal summit the outgoing prime minister declined to attend, and Magyar has extended an offer to meet Ukrainian President Volodymyr Zelenskyy in early June in the Hungarian-majority Ukrainian town of Berehove.

    Political analysts note Magyar enters his term with rare advantages for advancing his reform agenda: his party’s parliamentary supermajority gives Tisza the power to amend the Hungarian constitution unilaterally, and the EU has already signaled significant goodwill toward the new government after years of friction with Orbán’s administration. What remains to be seen is whether Magyar can meet Brussels’ tight reform requirements to unlock the vital funds before the critical August deadline.

  • Israeli officers say Lebanon mission focused on ‘systematic destruction’ of buildings

    Israeli officers say Lebanon mission focused on ‘systematic destruction’ of buildings

    Deep divisions have emerged within Israeli military ranks over the nature of ongoing operations in southern Lebanon, with senior officers confirming that the force’s core mission has shifted from active combat to the systematic leveling of civilian infrastructure and residential communities, a new investigation by Israeli newspaper Haaretz has revealed.

    The Wednesday report outlines a coordinated, top-down plan to destroy predominantly Shia villages across the border region, a strategy explicitly designed to block displaced local residents from returning to their homes once operations conclude. Under the current operational framework, infantry units are assigned specific geographic zones to clear for demolition, with commanding officers mandated to submit daily tallies of the number of structures destroyed to senior leadership.

    “The only mission is to continue the destruction,” one unnamed Israeli commander told Haaretz. “There are no other tasks.” A second senior officer pushed back against official Israeli military narratives that frame the campaign as targeting solely “terrorist infrastructure,” saying: “These are not terrorist infrastructures – everything is being destroyed.”

    Not all Israeli personnel have echoed the description of a blanket demolition order. One separate officer maintained that operations are targeted exclusively at Hezbollah’s underground militant networks, weapons caches, and surveillance and communications systems, arguing that “We are operating pragmatically, according to operational need.”

    Despite this official framing, on-the-ground data and visual evidence confirm the scale of devastation being inflicted on civilian communities. Lebanon’s National Council for Scientific Research estimates that approximately 40,000 housing units have been partially or completely destroyed since operations began in early March. On peak days of activity, more than 1,000 residential structures are damaged or leveled, with entire neighborhoods reduced to rubble. Drone footage circulated publicly in recent weeks shows entire southern Lebanese villages wired for controlled demolition before being completely destroyed by Israeli explosive teams.

    The investigation also uncovered that the majority of demolition work is being carried out by private contractors, whose compensation is tied directly to the volume of destruction they complete. “The companies profit based on the number of houses [destroyed],” one serving Israeli soldier told Haaretz. “And we’re there to provide security, at risk to our lives.”

    Multiple frontline soldiers have criticized the demolition mission as strategically senseless, noting that the task of guarding contractors while they destroy civilian structures leaves troops exposed to regular Hezbollah drone strikes. “We stand exposed, guarding demolitions while drones are in the air,” one soldier said.

    Official casualty figures from Lebanon’s Ministry of Health underscore the devastating human toll of the two-month campaign. Since Israeli ground operations launched on March 2, at least 2,290 people have been killed across Lebanon, including 100 rescue workers and healthcare personnel, and more than 7,500 others have been wounded. The violence has displaced roughly 1.2 million people nationwide, nearly a quarter of Lebanon’s total population.

    Though a US-brokered truce was announced in mid-April, Israeli airstrikes and ground operations have continued uninterrupted in southern Lebanon, triggering renewed exchanges of fire with Hezbollah militants. Israeli forces maintain a permanent presence roughly 10 kilometers inside sovereign Lebanese territory, with consistent reports of targeted strikes on civilian areas and ongoing demolition of residential structures.