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Federal Reserve official sees signs of slowing economy but not ready to cut rates

Federal Reserve official sees signs of slowing economy but not ready to cut rates

By CHRISTOPHER RUGABER

WASHINGTON (AP) — A top Federal Reserve official said Friday that massive uncertainty created by President Donald Trump’s tariffs has caused some businesses to cut back on hiring and spending, threatening to slow the economy, but he added that it’s not yet clear whether the central bank should cut its key interest rate.

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Tom Barkin, president of the Federal Reserve’s Richmond branch, said businesses have turned cautious, though are not yet engaging in steep job cuts or other behavior typical of a recession.

“The way I’ve been describing it is, it’s really hard to drive when it’s foggy,” Barkin said in remarks to the Loudoun County, Virginia Chamber of Commerce. “That’s what I’m seeing on the business side. Hiring freezes, discretionary spending being cut back, but not major layoffs.” read more

The new rules of airline loyalty programs

The new rules of airline loyalty programs

By Meghan Coyle, NerdWallet

The free flights and elite status perks offered by airline loyalty programs are ultimately designed to do one thing: Get you to spend more money with the airline.

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But in the past few years, these programs have gotten a lot more complicated and less rewarding. Gone are the days of simply earning miles or elite status based on how far or how often you fly. Today, the “Big Four” U.S. airlines — American Airlines, Southwest Airlines, Delta Air Lines and United Airlines — all reward customers based on how much they spend.

Ganesh Sitaraman, a law professor at Vanderbilt University and the author of “Why Flying is Miserable,” joined NerdWallet’s Smart Travel podcast to discuss how airline loyalty programs have evolved. read more

Should you handle debt or build an emergency fund first?

Should you handle debt or build an emergency fund first?

By Whitney Nielsen, Bankrate.com

There’s a reason financial advisers keep recommending you save money for emergencies. More than one in three Americans needed to tap their emergency savings in the past year, according to Bankrate’s 2025 Annual Emergency Savings Report. But when you’re juggling debt, putting money toward savings can feel overwhelming. Many feel paying down their balances would be more beneficial than adding money to savings.

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As a general guideline, financial experts suggest building a small emergency fund first — enough to cover one month of your expenses. This will help you avoid sliding deeper into debt when surprises pop up. Beyond that initial safety net, focusing on paying off your debt or increasing your savings depend on your unique situation and goals. read more

From AI avatars to virtual reality crime scenes, courts are grappling with AI in the justice system

From AI avatars to virtual reality crime scenes, courts are grappling with AI in the justice system

By RIO YAMAT

Stacey Wales gripped the lectern, choking back tears as she asked the judge to give the man who shot and killed her brother the maximum possible sentence for manslaughter.

What appeared next stunned those in the Phoenix courtroom last week: An AI-generated video with a likeness of her brother, Christopher Pelkey, told the shooter he was forgiven.

The judge said he loved and appreciated the video, then sentenced the shooter to 10.5 years in prison — the maximum sentence and more than what prosecutors sought. Within hours of the hearing on May 1, the defendant’s lawyer filed a notice of appeal.

The Army dress uniform and photo of the late Christopher... The Army dress uniform and photo of the late Christopher Pelkey is shown at his mother’s home, Wednesday, May 7, 2025, in Chandler, Ariz. (AP Photo/Matt York) Stacey Wales, sister of the late Christopher Pelkey, displays her... Stacey Wales, sister of the late Christopher Pelkey, displays her brother’s image at her mother’s home, Wednesday, May 7, 2025, in Chandler, Ariz. (AP Photo/Matt York)

Defense attorney Jason Lamm won’t be handling the appeal, but said a higher court will likely be asked to weigh in on whether the judge improperly relied on the AI-generated video when sentencing his client.

Courts across the country have been grappling with how to best handle the increasing presence of artificial intelligence in the courtroom. Even before Pelkey’s family used AI to give him a voice for the victim impact portion — believed to be a first in U.S. courts — the Arizona Supreme Court created a committee that researches best AI practices. read more

Two dolls instead of 30? Toys become the latest symbol of Trump’s trade war

Two dolls instead of 30? Toys become the latest symbol of Trump’s trade war

By ANNE D’INNOCENZIO and DIDI TANG

NEW YORK (AP) — President Donald Trump’s tariffs crusade has taken aim at a number of foreign goods, from European wines and car parts from Mexico to films made abroad. Lately, the president’s wandering ire has found another rhetorical poster child: toy dolls.

Trump asserted that children will be fine having two dolls — perhaps three or five — instead of 30 if U.S. import taxes increase consumer prices. The response on social media included memes of him portrayed as the Grinch and photos of a young Barron Trump’s child-sized Mercedes convertible.

“COMPLETELY out of touch,” The Loyal Subjects CEO Jonathan Cathey, whose collectible toy company in Los Angeles produces Strawberry Shortcake and Rainbow Brite dolls, wrote on Linkedin. “If that ain’t a ‘Let them eat cake’ moment shot through the echoes of history? Love how toys and dolls have become THE martyr metaphor for this nonsensical trade war incoherence.”

The president’s comments also touched a nerve with parents, both ones who took offense at the casual way he hypothesized that perhaps “two dolls will cost a couple bucks more” and those who acknowledged their own kids have more toys than they need. read more