latest news in economy
Major Corporate Job Cuts Test Resilience of United States Labor Market
Washington, Friday, 30 January 2026.
Despite Amazon and UPS announcing nearly 50,000 combined job cuts this January, initial jobless claims unexpectedly dropped to 209,000, highlighting a complex disconnect in the early 2026 labor market.
Kevin Warsh Emerges as Frontrunner Ahead of Trump's Friday Fed Announcement
Washington, Friday, 30 January 2026.
President Trump is scheduled to announce his nominee for Federal Reserve Chair this morning, January 30. Former Governor Kevin Warsh has surged as the overwhelming favorite in prediction markets to replace Jerome Powell, potentially signaling a decisive shift in future monetary policy.
Global Growth Remains Steady in 2026 Despite Geopolitical Upheaval
London, Thursday, 29 January 2026.
Despite seismic shifts in the geopolitical landscape and aggressive new trade policies, the global economic engine remains surprisingly steady. Recent analyses from the IMF and Reuters indicate that global growth for 2026 is projected at approximately 3 percent, virtually unchanged from previous forecasts. This aggregate stability, however, masks significant regional divergence: while the U.S. and China are expected to expand by 2.3 percent and 4.5 percent respectively, the Eurozone trails with a forecasted growth of just 1.2 percent. Economists attribute this resilience largely to AI-driven productivity gains which are currently offsetting headwinds from trade fragmentation and high sovereign debt. Nevertheless, the outlook remains fragile; the stability of the 2026 economy relies heavily on the assumption that current trade truces hold and that AI investments yield tangible productivity results without triggering a market correction.
Microsoft Plunge Sinks Markets as AI Spending Fears Overshadow Earnings Beat
New York, Thursday, 29 January 2026.
Indices retreated Thursday as Microsoft plunged over 11%—its worst day since 2020—despite beating estimates, as a massive $37.5 billion quarterly capital spend raised concerns about AI returns.
Treasury Secretary Defends Federal Reserve Probe and Touts New Child Savings Program
Washington D.C., Thursday, 29 January 2026.
Treasury Secretary Scott Bessent revealed 600,000 families applied for the new $1,000 investment accounts in just one week, while simultaneously defending the Justice Department’s unprecedented investigation into Federal Reserve Chair Jerome Powell.
Largest US Power Grid Faces Blackout Risk as Winter Demand Hits Record Highs
Audubon, Wednesday, 28 January 2026.
Wholesale electricity prices spiked above $3,000 per megawatt-hour as the largest US grid braces for record winter demand, forcing rare emergency measures to secure power for 67 million people.
S&P 500 Breaches Historic 7,000 Level as AI Boom Fuels Wall Street Rally
New York, Wednesday, 28 January 2026.
The S&P 500 surpassed 7,000 today, fueled by AI optimism. Notably, this rally coincides with record gold prices, signaling a rare market dynamic balancing aggressive growth with defensive hedging strategies.