Inflation report lands amid spiking oil prices, rising interest rates and Fed on fence

WASHINGTON (AP) — Friday’s inflation report is shaping up to be among the most consequential in years. Oil and gas prices have spiked again on the back of renewed combat in the Middle East. The Federal Reserve is considering whether to lift its short-term interest rate next week, with some officials saying Friday’s report could swing them either way. And longer-term interest rates jumped Thursday, pushing mortgage borrowing costs higher, partly on fears of more persistent inflation. The Trump administration is seeking to counter voter concerns about high prices and rising borrowing costs as the midterm elections approach.

Trump wants to send Americans money. Congress and economists don't seem thrilled with the idea

WASHINGTON (AP) — Donald Trump’s pitch to send Americans $5,000 checks should Republicans prevail in the November midterms is drawing scorn from some members of Congress — the very people who have constitutional authority over federal spending. Economists and other political observers are voicing concerns about the potential effects on inflation and the national balance sheet. Taken together, it’s a swift reaction that makes clear that Trump's dubious election-year gambit is little more than another grand promise from a politician with a long history of them. Trump previously pledged to use savings from the Department of Government Efficiency and revenue from tariffs on foreign imports to distribute payments of $2,000 or more, but none of that came to pass.

Anthropic says it blocked misuse of its AI that could have supported biological weapons

Anthropic says it has blocked efforts by bad actors to use its artificial intelligence models for malicious activity such as cyberattacks, surveillance and research that could have led to biological weapons. As AI models grow more powerful, elaborate cyberattacks no longer require sophisticated skills and even lone individuals can create attacks that would not have been possible even a year ago. Anthropic said Thursday that it found signs of misuse despite adding stronger safeguards in its latest models to restrict research for things such as biological misuse. The company says its researchers blocked threatening actors from spyware vendors to state-sponsored spreaders of propaganda.

European Central Bank raises interest rates a quarter point to quell energy-fueled inflation

FRANKFURT, Germany (AP) — The European Central Bank is raising interest rates to cool inflation that is being fed by high oil prices from the Iran war. The decision is supported by a stronger-than-expected economy that suggests businesses can weather the higher borrowing costs. The central bank for the 21 EU member countries that use the euro currency raised its benchmark rate Thursday by a quarter percentage point to 2.50% at a meeting held in Berlin, away from the bank’s Frankfurt headquarters. The bank last raised rates at its June 11 meeting, then hit pause at its July 23 session. Remarks by ECB President Christine Lagarde at her news conference will be parsed by market analysts and investors for clues about whether more interest rate increases are coming.

Anthropic researcher resigns with warning about the dangers of AI development

An Anthropic researcher is resigning over concerns about irresponsible development of artificial intelligence. Jacob Coxon, who worked at Anthropic and OpenAI, shared his worries about unsafe development practices and underestimating AI's capabilities on the social platform X on Tuesday. His posts reached nearly 100 million people overnight, sparking widespread online discussion. He warned that AI models could soon become superhuman systems and threaten human life. Both Anthropic and OpenAI faced scrutiny this summer when their models accessed real computer systems without authorization. The companies paused some evaluations to implement more monitoring measures, but are locked in a race to compete with each other and international AI firms.

China says it hopes to agree with the US on tariff reductions at 'an early date'

BEIJING (AP) — A Chinese government spokesperson says China and the United States hope to reach an agreement on lowering import taxes soon. Negotiators are working to implement reciprocal tariff reductions on $30 billion of goods. The talks come ahead of a Sept. 24 meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in Washington. This will be their third face-to-face talks in the past year. Trump and Xi agreed at their previous meeting to launch a U.S.-China Board of Trade. The goal is to identify and reduce tariffs on equivalent amounts of nonsensitive goods on each side.

Oil prices leap to their highest since May and drag Wall Street lower

NEW YORK (AP) — U.S. stocks sank after oil prices jumped to their highest levels since May. The S&P 500 fell 0.6% Thursday for a fourth straight loss. The Dow Jones Industrial Average dropped 0.6%, and the Nasdaq composite sank 0.7%. Stocks felt pressure as the price for a barrel of Brent crude briefly topped $108 because the war with Iran continues to clog the global flow of crude. Treasury yields leaped in the bond market on increased worries about inflation, and the 10-year yield jumped to 4.95%. That’s up nearly a whole percentage point since the war with Iran began.

Body camera video offers a rare look inside an immigration raid at a NY factory

Body camera footage of immigration arrests at a snack-food factory in upstate New York offers a rare glimpse inside a workplace immigration raid. The Associated Press analyzed the video, which was part of a lawsuit filed Thursday that says authorities overstepped their search warrants. Officers made 57 immigration arrests in the September 2025 raid at the Nutrition Bar Confectioners plant in Cato, New York, a town of 2,500 people east of Syracuse. The officers ordered a manager to announce their presence over loudspeakers while they entered the building and caught employees on the production line, in the warehouse and a few in the bathroom.

US home sales weaken to slowest pace in more than a year as mortgage rates, home prices climb

Sales of previously occupied U.S. homes declined in August to their slowest annual pace in more than a year as home shoppers grappled with rising mortgage rates and home prices. The National Association of Realtors said Thursday that existing home sales fell 2% last month from July to a seasonally adjusted annual rate of 3.98 million units. This is the third straight monthly decline. Sales also fell 1.2% compared with August last year. The last time the annual sales pace came in below 4 million was June 2025. The U.S. median sales price increased 1.6% in August from a year earlier to $429,100, an all-time high for the month of August.

US wholesale prices rise in latest sign of stubborn inflation as oil prices continue to climb

WASHINGTON (AP) — Wholesale inflation picked up last month after cooling earlier this summer as higher oil and gas prices stemming from the Iran war are keeping costs elevated. The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 5.4% in August from a year ago, up from 4.7% in July, the government said Thursday. Inflation has shown some signs of easing in recent months but is still high, frustrating consumers who are struggling with more expensive gas, groceries, clothing and other essentials. Oil prices globally topped $100 a barrel this week on renewed fighting in the Middle East.