Embattled Fed Gov. Lisa Cook says she'll sue Trump to keep her job

WASHINGTON (AP) — Federal Reserve Gov. Lisa Cook's lawyer says she'll sue President Donald Trump's administration to try to prevent him from firing her. Longtime Washington attorney Abbe Lowell said Tuesday that Trump “has no authority to remove” Cook. If Trump succeeds in removing Cook from the Fed's board of governors, it could erode the Fed’s political independence, which is considered critical to its ability to fight inflation because it enables the Fed to take unpopular steps like raising interest rates. The Republican president said Monday he was removing Cook because of allegations she committed mortgage fraud. Cook was appointed by Democratic President Joe Biden in 2022.

What to know about Lisa Cook, the Fed Governor who Trump says he's firing

NEW YORK (AP) — Lisa Cook made headlines three years ago when she became the first Black woman to serve on the Federal Reserve’s Board of Governors, one of the most powerful financial institutions in the world. On Monday, President Donald Trump said he was firing Cook, who has worked in the Clinton, G.W. Bush and Obama administrations. Critics say accusations of mortgage fraud against Cook are being used as a tool by Trump to gain control of the Federal Reserve, one of the few remaining independent agencies in Washington. The allegations were raised by Bill Pulte, a Trump appointee who heads the Federal Housing Finance Agency. He has raised similar allegations against Sen. Adam Schiff, D-Calif. and New York Attorney General Letitia James.

Why the Federal Reserve has historically been independent of the White House

WASHINGTON (AP) — President Donald Trump says he is firing Federal Reserve Governor Lisa Cook after she was accused of mortgage fraud. It's the latest effort by his administration to exert greater control over one of the few remaining independent agencies in Washington. Cook previously said she would not leave her post. Trump has repeatedly attacked the Fed’s chair, Jerome Powell, for not cutting its short-term interest rate, and even threatened to fire him. Firing Powell or forcing out a governor would threaten the Fed’s venerated independence, which has long been supported by most economists and Wall Street investors.

Lisa Cook is latest target for Bill Pulte, Trump's housing regulator

WASHINGTON (AP) — Bill Pulte, the country's top housing regulator, has been using his position to target President Trump's political enemies. He has accused them of mortgage fraud and encouraged investigations. This week, Trump used Pulte's allegations to attempt to fire Lisa Cook from the Federal Reserve board of governors. Cook plans to fight her removal. Pulte has also targeted other Democrats but ignored similar cases involving Republicans. His actions align with Trump's efforts to pressure opponents using federal power. Pulte, a housing industry scion, has a history of political donations to Trump and his allies.

A US tariff exemption for small orders ends Friday. It's a big deal to some shoppers and businesses

NEW YORK (AP) — Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.

What shoppers can do to limit charges once the US ends a tariff exemption for goods under $800

NEW YORK (AP) — U.S. shoppers have enjoyed cheap, duty-free international packages from overseas retailers, but that's changing. The "de minimis" exemption, which allowed duty-free shipping on packages worth $800 or less, ends on August 29. Now, all international packages will face tariffs ranging from 10% to 50% or a flat duty between $80 to $200 per item, depending on the country of origin. Consumers might not pay all the tariffs, depending on certain conditions. Merchants should aim to make import costs clear, but some confusion is expected. Shoppers should check product origin and shipping details to avoid surprises.

CSX railroad's merger prospects derail as BNSF and CPKC make clear they aren't interested in a deal

OMAHA, Neb. (AP) — The prospects for additional consolidation in the rail industry derailed this week when both of CSX's potential partners said they weren't interested in a deal. Investors widely speculated that CSX would be an acquisition target once rumors of merger talks between Union Pacific and Norfolk Sothern emerged over the summer, because of the challenge of competing against a nationwide railroad. Both BNSF and CPKC have made clear they don't think a merger makes sense. Meanwhile, it remains to be seen if last month’s announcement of the transcontinental Union Pacific-Norfolk Southern merger will be approved.

August consumer confidence dips in US with jobs, tariffs and high prices driving most unease

WASHINGTON (AP) — Americans’ view of the U.S. economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by1.3 points to 97.4 in August, down from July’s 98.7, but in the same narrow range of the past three months. A measure of Americans’ short-term expectations for their income, business conditions and the job market fell by 1.2 points to 74.8, remaining significantly below 80, the marker that can signal a recession ahead. Consumers’ assessments of their current economic situation also fell modestly, to 131.2 in August from 132.8 in July.

Trump family crypto empire expands with Crypto.com partnership

President Donald Trump’s crypto ventures are expanding with plans for a digital asset treasury company. Trump Media and Technology Group, which runs Truth Social, announced Tuesday a partnership with Crypto.com to form Trump Media CRO Strategy. The company plans to purchase $105 million worth of CRO, a token from Crypto.com. Yorkville Advisors, a co-founder, expects total funding to reach $1 billion in CRO, plus cash and a line of credit. This move follows a trend where companies buy and hold cryptocurrency as a business strategy. Trump Media also plans a rewards system on Truth Social using Crypto.com’s digital wallet infrastructure.

Study says AI chatbots need to fix suicide response, as family sues over ChatGPT role in boy's death

SAN FRANCISCO (AP) — A study finds that AI chatbots often avoid answering high-risk suicide questions but are inconsistent with less direct prompts. Published Tuesday in the journal Psychiatric Services, the study highlights the need for improvement in chatbots like ChatGPT, Gemini, and Claude. Researchers from RAND Corporation emphasize the importance of setting benchmarks for how AI handles mental health queries. Concerns arise as more people, including children, rely on these tools for support. The study coincides with a lawsuit against OpenAI, alleging ChatGPT contributed to a California teenager's suicide. Researchers urge companies to enhance safety measures.