Fed Chair Warsh signals rate hikes may be needed with US inflation stubbornly elevated

JACKSON HOLE, Wyoming (AP) — Federal Reserve Chair Kevin Warsh says inflation is still too high and suggested the central bank may have to raise interest rates in the coming months to bring it down, a clearer signal than he has sent before about his economic outlook. In his first high-profile speech at the Fed’s annual conference at Jackson Hole, Warsh acknowledged in prepared remarks Friday that recent inflation reports show it has cooled a bit, but “they do not tell me that underlying trends have meaningfully improved.”

The bond market prepares for a hike to interest rates, while US stocks drift lower

NEW YORK (AP) — The bond market swung as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped Friday but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term. The S&P 500 fell 0.2% after flipping between modest gains and losses through the morning. The Dow Jones Industrial Average dipped by less than 0.1%, and the Nasdaq composite fell 0.5%.

Trump says US has entered deal with Venezuela to take control of 65 billion barrels of oil reserves

WASHINGTON (AP) — President Donald Trump says his administration has entered a sweeping agreement with Venezuela that, if realized, could give the U.S. access to vast amounts of the South American country’s untapped oil reserves, at cost. Trump said in a social media post Friday that the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s acting President Delcy Rodríguez. The president calls it "THE BIGGEST OIL DEAL IN WORLD HISTORY!” Rodríguez’s government says the deal involves the development of 17 fields with a proven potential of 65 billion barrels. It says it could draw $100 billion in investment into Venezuela’s oil industry,

Europe's summer drought threatens fish in rivers, lakes and farms

NOVI SAD, Serbia (AP) — Extreme drought and heat have severely impacted the Danube River and surrounding regions. Fishermen in northern Serbia report that the river has receded, leaving only small ponds with dangerously high water temperatures. The drought has affected ecosystems and businesses across several countries, including Hungary, Romania, and Bosnia. Hungary faces severe drought conditions, with significant fish pond losses. Romanian fish farmers struggle with ongoing drought effects, while Czech farmers take emergency measures. In Bosnia, trout farms are barely surviving. Slovenia is pumping water into lakes to save fish. Countries are now considering ways to mitigate future climate-related impacts.

Iran scrambles to sustain trade as US threatens to sanction countries that refuse to break ties

BEIRUT (AP) — Iran's economy is poised for more instability as the Trump administration tries to coerce other countries into ending all financial dealings with the Islamic Republic. A decision by the United Arab Emirates to suspend trade relations with Iran last week kick-started the White House’s latest attempt to isolate Tehran into submission. Iran has few other major trade partners to turn to now. China is the most capable of hindering the U.S. strategy. Russia has a military conflict of its own and probably can’t offer a fellow target of international sanctions much hard financial support. Turkey, Pakistan and Iraq maintain important relationships with both Iran and the U.S. and have reasons to avoid antagonizing Washington.

US targets Egyptian bank's UAE branches under new push for Iran's economic isolation

WASHINGTON (AP) — The Trump administration is limiting an Egyptian bank's operations in the United Arab Emirates and accusing the financial institution of supporting Iran's leadership. The move announced Friday is part of the administration's new campaign to push countries to cut remaining financial ties with Iran or face U.S. retaliation. The Emirati branches of Banque Misr, Egypt’s second-largest bank, are being targeted under the Treasury Department proposal. There's a 30-day public comment period before it takes effect. The announcement coincides with new sanctions on a Dubai bank manager and a Hong Kong company accused of laundering funds for Iran.

Juul gets OK to sell updated vaping device with age-gating technology

WASHINGTON (AP) — E-cigarette maker Juul Labs has received U.S. permission to sell an updated version of its vaping device. The new product was announced by federal regulators on Friday. It includes an electronic age-verification system to prevent underage use. The decision from the Food and Drug Administration means Juul can sell a new version of its vaping device for the first time since it launched in 2015. The company was briefly the top-selling e-cigarette in the country. But it faced a swift legal backlash over underage use of its nicotine-emitting products.

Judge says Pentagon's measures against Anthropic were 'illegal and baseless'

A federal judge has ruled in favor of artificial intelligence company Anthropic in its legal battle against the Pentagon. The government labeled the company a supply chain risk earlier this year. U.S. District Judge Rita Lin issued a written order Thursday night stating the Pentagon acted illegally by punishing Anthropic for criticizing the Department of Defense’s views on AI use. The dispute began in February when President Donald Trump and Defense Secretary Pete Hegseth accused Anthropic of endangering national security. The government is expected to fight the ruling. Anthropic says it welcomes the decision and remains focused on working with the government.

What to know about Iceland's vote on whether to restart talks to join the EU

REYKJAVIK, Iceland (AP) — Icelanders are voting Saturday on whether to restart talks about joining the European Union. The decision has divided the nation of 400,000 over issues of sovereignty. Supporters of EU membership believe it offers protection and economic benefits. Opponents argue Iceland already enjoys European integration without losing control over its resources. The referendum is a simple yes or no question about resuming accession negotiations. A yes vote would lead to a lengthy negotiation process. Fishing rights remain a major concern since Iceland wants to maintain control over its rich fishing grounds. The result is expected to be very close.

New Fed chair Kevin Warsh under pressure to clarify views on inflation, interest rates

WASHINGTON (AP) — New Federal Reserve chair Kevin Warsh has brought sharp change in how the central bank communicates by saying much less than his predecessors about the economy and inflation. So far, many economists and Wall Street investors haven’t been thrilled with that approach. On Friday, Warsh has a high-stakes opportunity to address those concerns and underscore his inflation-fighting bona fides when he gives his speech in Jackson Hole, Wyoming, during the Fed’s annual economic symposium. What many economists and Wall Street analysts are hoping for is a clear signal on how he thinks the Fed should handle the stubbornly elevated inflation that has caused pervasive gloom among many consumers.