BUSINESS HEADLINES

US economy expanded at solid 2.1% pace in January-March, government says, upgrading last estimate

WASHINGTON (AP) — The U.S. economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported Thursday in its final estimate of first-quarter growth. The growth in gross domestic product — the nation’s output of goods and services — marked a rebound from a sluggish 0.5% in the last three months of 2025 when a 43-day federal government shutdown weighed on the economy. Thursday’s numbers marked an upgrade from of Commerce’s previous estimate of 1.6% first-quarter growth. Business investment surged, probably reflecting an investment boom in artificial intelligence. But consumer spending fell sharply from fourth-quarter 2025 and from Commerce’s previous estimate.

Key inflation gauge jumps to 3-year high in latest sign of affordability challenges

WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Trump as midterm elections near. The increase was largely driven by more expensive gas, as well as pricier semiconductors and other computer equipment that are in high demand for the AI buildout. Rising prices have caused the inflation-fighters at the Federal Reserve to keep their key rate unchanged this year, a reversal from January when they had penciled in two cuts. Some economists forecast the central bank could lift rates this year instead.

As temperatures soar, Paris court set to rule on landmark climate change case

THE HAGUE, Netherlands (AP) — A court in Paris is set to rule on a landmark climate change case that could see energy giant TotalEnergies forced to reduce its oil and gas production, a day after France hit record high temperatures. The lawsuit, brought by a group of NGOs and the city of Paris, argues the French corporation is violating regulations that requires companies to prevent human rights abuses, the first time the 2017 duty of vigilance law has been applied to climate change. They claim that TotalEnergies is one of the largest historical emitters and have asked the court to require the company to reduce oil production by 37 percent and gas production by 25 percent by 2030. The lawsuit also asks for a halt to all new fossil fuel projects.

AI is plowing through the workplace. This new group wants to help people adapt and have jobs

WASHINGTON (AP) — A new bipartisan nonprofit wants to help Americans who find they’re out of work because of AI. It’s called RAISE US and it’s starting with more than $500 million for education and training programs at the state level. An analysis by the Boston Consulting Group estimated that more than half of U.S. jobs will be reshaped by AI over the next few years. Former Commerce Secretary Gina Raimondo and former Indiana Gov. Eric Holcomb are the co-founders. They’re planning to start with programs in Arkansas, Maryland, Utah and Connecticut. Raimondo says the states will test ideas that Congress can later embrace as policies. BUSINESS