The U.S. economy grew at a 1.5% annual rate in Q2, a slowdown from Q1's 2.1%, mainly due to decreased government spending and increased imports. Consumer spending, however, remained robust at 2.1%, despite rising inflation and falling savings.
The US economy grew by 1.5% in Q2 2026, a slowdown from Q1, as rising imports offset consumer spending. Inflation, measured by the PCE price index, eased slightly to 3.7% but remains above the Fed's 2% target. The Federal Reserve kept interest rates unchanged, though some officials dissented, citing persistent high inflation exacerbated by the Middle East war.
Microsoft President Brad Smith criticized the US government's approach to regulating AI, calling for more transparency and better tools. His comments follow recent crackdowns on Anthropic and OpenAI models, which he believes were handled without proper rules, impacting business planning and international confidence.
The U.S. Department of Commerce has reportedly cleared OpenAI to release its advanced GPT-5.6 model, with a rollout anticipated as early as this week. This follows additional testing and government meetings, and comes as the Trump administration increases AI regulation.
Le Département du Commerce américain a levé les restrictions d'exportation sur les modèles d'IA Claude Fable 5 et Mythos 5 d'Anthropic, permettant à l'entreprise de rouvrir l'accès à ses services après une suspension qui avait affecté les utilisateurs, notamment dans le milieu crypto.
Anthropic's advanced AI models, Fable and Mythos, are no longer subject to US export controls, less than three weeks after they were suspended due to national security concerns. Access will be restored starting tomorrow.
The US Commerce Department has banned imports of new Polestar models from model year 2027 onward, citing a rule against connected cars from automakers with Chinese links. This decision blocks future models like the Polestar 5 and 6, though existing Polestar 3 and 4 SUVs will continue to be sold.
US inflation, measured by the Federal Reserve's preferred PCE index, rose to a three-year high of 4.1% in May, fueled by rising gas prices and demand for semiconductors. This surge, coupled with increased consumer spending and incomes, could complicate political prospects for Donald Trump and his party ahead of midterm elections, as the Federal Reserve considers interest rate hikes.
AI startup Anthropic is preparing for a potential $1 trillion IPO but faces government opposition. The US Commerce Department has blacklisted its new AI models, Fable 5 and Mythos 5, and the Department of War has migrated workflows away from its 'Claude' AI due to national security and military application concerns.
US retail sales rose 0.9% in May, exceeding forecasts, driven by strong auto purchases and service station receipts amid higher gas prices. Despite consumer anxiety over inflation, spending remains resilient, though a slowdown is anticipated as tax refund cushions deplete.
The US has reportedly delayed adding Chinese AI startup DeepSeek to a trade blacklist, despite approval last year. DeepSeek's low-cost AI model and alleged support for military operations raised concerns among US officials and AI companies.
India's trade map has been altered by the West Asia conflict. Oman rose to 10th from 30th in imports, driven by energy, while UAE slipped. Singapore overtook China as India's 3rd largest export destination.
Anthropic executives will meet with the US Department of Commerce on Monday in Washington DC to discuss AI safety concerns, specifically regarding a potential "jailbreak" vulnerability in their AI tool, Fable 5/Mythos 5. This follows a US government prohibition on foreign access to the technology.
Anthropic has disabled its new Mythos 5 and Fable 5 AI models for all customers following a US Commerce Department directive. The directive cites concerns over a potential jailbreak that could bypass safeguards related to cybersecurity, chemistry, and biology, impacting national security.
Google, Microsoft, and xAI have agreed to provide the US government with early access to their AI systems, including models with reduced safeguards, for national security risk assessment by the Commerce Department's CAISI.
The US economy expanded at a 2% annual rate in the first quarter of 2026, rebounding from the previous quarter's weak performance after a 43-day federal government shutdown. Strong government and business investment offset slower consumer spending and a weak housing market, but rising energy prices and uncertainty from the Iran conflict are clouding the economic outlook.
The Commerce Department is expected to release a report showing solid US economic growth for Q1 2026, despite headwinds from the ongoing war with Iran.
