The U.S. economy grew at a 1.5% annualized rate in the second quarter, the government said on Thursday, capturing a three-month stretch shaped by the Middle East conflict and a surge in energy prices.
Why it matters: Consumer spending and business investment fueled by AI spending remained the economy's standout growth engines in the spring.
The Iran war has revealed China's enormous power over global oil prices, thanks to its position as the world's largest buyer.
Why it matters: China's reaction to the oil shock — by substantially withdrawing from buying on world markets — helped prevent the worst of the price spikes that experts thought would follow from the effective closure of the Strait of Hormuz.
Thursday's GDP and inflationreports are expected to reinforce the Federal Reserve's dilemma: Economic growth is holding up, while inflation remains too hot for comfort.
Why it matters: Growth that's resilient enough to withstand high borrowing costs, paired with inflation that remains above target, would reinforce the case for keeping monetary policy restrictive.
Everyone agrees the standard for self-driving cars is that they have to perform better than a human driver. Proving that is not so simple, however.
Why it matters: Inconsistent data reporting methods mean there's no common yardstick to compare safety claims, adding to the confusion and distrust surrounding autonomous vehicles.
