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Canada will match US tariff exemptions under USMCA trade pact, Prime Minister Carney says

Summary

  • Canada ends on U.S. goods
  • Move aligns with U.S. exemptions under trade deal
  • Prime Minister says it resets trade talks
  • USMCA is up for review in 2026

TORONTO (AP) — Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada , Prime Minister Mark Carney announced Friday.

Carney said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties.

“Canada currently has the best trade deal with the United States. And while it’s different from what we had before, it’s still better than that of any other country,” Carney said.

Carney and U.S. President spoke on the phone Thursday, and Carney met with his Cabinet on Friday before making the announcement.

“We had a very good call,” Trump said Friday in the Oval Office. “We are working on something. We want to be very good to Canada. I like Carney a lot. I think he’s a very good person.”

“I am fighting for the United States, and Canada and Mexico have taken a lot of our business over the years,” Trump said.

Carney said Trump told him that lifting the tariffs would reset trade negotiations.

The USMCA is up for review in 2026, and Carney called the trade pact a unique advantage for Canada at a time when it is clear that the U.S. is charging for access to its market.

Carney said the commitment of the U.S. to the core of USMCA means that over 85% of Canada-U.S. trade continues to be free of tariffs. He said the U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners.

Canadian and Mexican companies can claim preferential treatment under the USMCA.

Canada and China are the only countries that have retaliated against Trump in his trade war. Canada imposed 25% tariffs on a long list of American goods in March, including oranges, alcohol, clothing and shoes, motorcycles and cosmetics.

Former Prime Minister Justin Trudeau initially put on retaliatory tariffs in response to U.S. tariffs, but before the U.S. tariffs were applied the exempted goods covered by the free trade deal.

Most imports from Canada and Mexico are still protected by the USMCA, but U.S. Commerce Secretary Howard Lutnick has said, “I think the president is absolutely going to renegotiate USMCA.”

Preserving the free trade pact will be critical for Canada and Mexico. More than 75% of Canada’s exports go to the U.S. while more than 80% of Mexico’s exports go there.

Trump has announced some sector-specific tariffs that do apply for Canada despite the USMCA — known as 232 tariffs — which are having an impact on the Canadian economy. There is a 50% tariff on steel and aluminum imports, for example.

“Canada and the United States have reestablished free trade for the vast majority of our goods,” Carney said. “Canada will retain our tariffs on steel, aluminum and autos as we work intensively to resolve the issues there.”

Carney previously rescinded Canada’s plan to tax U.S. technology firms after Trump said he was suspending trade talks with Canada over those plans, which he called “a direct and blatant attack on our country.”

The prime minister disputed any notion that Canada is appeasing Trump, noting that Canada is matching what the U.S. is doing.

“The president and I had a long conversation,” Carney said. “There is a review of the in the spring. We’re starting our preparations.”

Lana Payne, president of Unifor, Canada’s largest private sector union, characterized Carney’s announcement as Canada backing down, and said the country shouldn’t back down unless the U.S. drops all punitive tariffs.

“Trump’s attacks on auto, steel, aluminum, and forestry sectors are hurting Canadian workers in real time,” she posted on social media. “Walking back counter-tariffs isn’t an olive branch. It only enables more U.S. aggression.”

U.S. Department of Education finds GMU violated civil rights law

SUMMARY:

George Mason University has been found in violation of federal civil rights law, the U.S. Department of Education announced Friday, laying blame on President Gregory Washington’s shoulders.

The public university, Virginia’s largest by enrollment, violated Title VI of the Civil Rights Act of 1964 by “illegally using race and other immutable characteristics in university practices and policies, including hiring and promotion,” the DOE said in a news release, citing Washington’s policies that the federal department sees as biased toward people of color and discriminatory against white employees.

“In 2020, university President Gregory Washington called for expunging the so-called ‘racist vestiges’ from ‘s campus. Without a hint of self awareness, President Washington then waged a universitywide campaign to implement unlawful DEI policies that intentionally discriminate on the basis of race. You can’t make this up,” Acting Assistant Secretary for Civil Rights Craig Trainor said in a statement. “Despite this unfortunate chapter in Mason’s history, the university now has the opportunity to come into compliance with federal civil rights laws by entering into a resolution agreement with the Office for Civil Rights.”

To resolve the matter — and maintain federal funding at George Mason — Washington is required to “personally issue a statement to all university students and employees that GMU will conduct all recruitment, hiring, promotion and tenure decisions in compliance with Title VI, and disseminate information to the campus community explaining how to submit a discrimination complaint,” and that the statement must include a personal apology by Washington.

The university also must review its policies and revise documents regarding hiring and promotions to comply with Title VI, as well as conduct annual training of employees involved in recruitment, hiring, promotion and tenure decisions, and maintain all records necessary to demonstrate compliance with an agreement.

The DOE has given George Mason 10 days to voluntarily resolve the violations.

It is not clear if the university is still under investigation for allegedly not protecting Jewish students and staff from antisemitism, the subject of a July 1 probe by the DOE’s Office of Civil Rights. The DOE’s press office did not immediately respond to a request for information. The Title VI probe was opened July 10, becoming the second federal investigation into Mason.

The Department of Justice’s civil rights division also is conducting two investigations into George Mason employment practices that the claims may be discriminatory to benefit women and people of color.

Critics, including Virginia Democratic lawmakers and George Mason faculty members, say that the university and Washington himself are under attack by the and have accused the federal government of overreach in an attempt to drive Washington out of the presidency.

The George Mason Board of Visitors issued a statement Friday addressing the Department of Education’s finding of violations: “The board is reviewing the specific resolution steps proposed by the Department of Education. We will continue to respond fully and cooperatively to all inquiries from the Department of Education, the Department of Justice and the U.S. House of Representatives and evaluate the evidence that comes to light. Our sole focus is our fiduciary duty to serve the best interests of the university and the people of the commonwealth of Virginia.”

Washington has not issued a public statement as of Friday afternoon about the DOE finding, and the university referred Virginia Business to the BOV’s statement when asked for comment.

In addition to the four federal investigations, Washington has been called to testify before a congressional committee controlled by Republicans. He survived a potential ouster at the Aug. 1 university board meeting where board members, all appointed by Republican , discussed Washington’s job performance in closed session. Instead, Washington received a 1.5% raise.

The university’s chapter of the American Association of University Professors, which has been critical of the federal government’s investigations and the university’s board of visitors, sent out a statement that “categorically condemns” both the Office of Civil Rights’ findings and the proposed remedy. The statement calls for George Mason’s board to “resist the Trump administration’s pressure campaign” and defend the university’s values.

“From the beginning, the purpose of this investigation has clearly been to provide a pretext for displacing GMU’s current leadership with the political allies of Gov. Youngkin and the Trump administration,” the statement says. “It also seems abundantly clear that the OCR’s politicized investigation is only one small part of the Trump administration’s larger project to bring American under the administration’s direct political and ideological control.”

Powell signals Fed may cut rates soon even as inflation risks remain

Summary

  • Powell opens door to possible Fed rate cut
  • No clear timeline given for policy shift
  • Fed faces risks from and
  • White House and closely watching remarks

JACKSON HOLE, Wyo. (AP) — Chair on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.

In a high-profile speech closely watched at the White House and on Wall Street, Powell said that there are risks of both rising unemployment and stubbornly higher inflation. Yet he suggested that with hiring sluggish, the job market could weaken further.

“The shifting balance of risks may warrant adjusting our policy stance,” he said, a reference to his concerns about weaker job gains and a more direct sign that the Fed is considering a rate cut than he has made in previous comments.

Still, Powell’s remarks suggest the Fed will proceed carefully in the coming months and will make its rate decisions based on how inflation and unemployment evolve.

“The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance,” Powell said. That suggests the Fed will continue to evaluate jobs and inflation data as it decides whether to cut rates, including at its next meeting Sept. 16-17.

The jumped in response to Powell’s remarks, with the broad index rising 1.4% in early trading.

Powell spoke with the Fed under unprecedented public scrutiny from the White House, as has repeatedly insulted Powell and has urged him to cut rates, arguing there is “no inflation” and saying that a cut would lower the government’s interest payments on its $37 trillion in debt.

While Powell spoke, Trump told reporters in Washington, D.C. that he would fire Federal Reserve Governor Lisa Cook if she did not step down over allegations from an administration official that she committed mortgage fraud.

If Cook is removed, that would give Trump an opportunity to put a loyalist on the Fed’s governing board. The Fed has long been considered independent from day-to-day politics.

Powell spoke at the Fed’s annual economic symposium in Jackson Hole, Wyoming, a conference with about 100 academics, economists, and central bank officials from around the world. He was given a standing ovation before he spoke.

In his remarks, the Fed chair underscored that tariffs are lifting inflation and could push it higher in the coming months.

“The effects of tariffs on consumer prices are now clearly visible. We expect those effects to accumulate over coming months, with high uncertainty about timing and amounts,” Powell said.

Inflation has crept higher in recent months though it is down from a peak of 9.1% three years ago. Tariffs have not spurred inflation as much as some economists worried but are starting to lift the prices of heavily imported goods such as furniture, toys, and shoes.

Consumer prices rose 2.7% in July from a year ago, above the Fed’s of 2%. Excluding the volatile food and energy categories, core prices rose 3.1%.

Regarding the job market, Powell noted that even as hiring has slowed sharply this year, the unemployment rate remains low. He added that with immigration falling sharply, fewer jobs are needed to keep unemployment in check.

Yet with hiring sluggish, the risks of a sharper downturn, with rising , has risen, Powell said.

Powell added that higher prices from tariffs could cause a one-time shift to prices, rather than an ongoing bout of inflation. Other Fed officials have said that is the most likely outcome and as a result the central bank can cut rates to boost the job market.

Powell, however, suggested it is largely up to the Fed to ensure tariffs don’t lead to sustained inflation.

“Come what may, we will not allow a one-time increase in the price level to become an ongoing inflation problem,” he said.

Powell also suggested the Fed would continue to make its decisions free from political pressure.

Fed officials “will make these decisions, based solely on their assessment of the data and its implications for the economic outlook and the balance of risks. We will never deviate from that approach.”

Wall Street rallies and the Dow soars 700 points on hopes for lower interest rates

Summary

  • jumped 1.4%, erasing weekly losses
  • Dow Jones surged 716 points toward record high
  • Nasdaq climbed 1.6% on tech strength
  • Powell signals Fed’s next move may be a rate cut

NEW YORK (AP) — is rallying on Friday after the head of the indicated the cuts to that investors and President have been craving so much may be coming soon, though he gave no clear clue about when.

The S&P 500 jumped 1.4% and erased all of its loss for the week. That’s following five straight modest losses after it set an all-time high last week.

The Dow Jones Industrial Average soared 716 points, or 1.6%, and was on track to blow past its own all-time high, which was set in December. The Nasdaq composite was up 1.6%, as of 10:25 a.m. Eastern time.

The hope among investors had been that would hint in his highly anticipated speech at a central bankers’ symposium in Jackson Hole, Wyoming, that cuts to interest rates may be imminent. Wall Street loves lower rates because they can give a boost to the economy and to investment prices, even if they risk worsening at the same time.

Trump has angrily been calling for lower rates, often insulting Powell while doing so. And a surprisingly weak report on job growth this month pushed many on Wall Street to assume cuts may come as soon as the Fed’s next meeting in September.

Powell did say Friday that risks are rising about a weakening job market, but he also did not not commit to any kind of timing. The Fed’s two jobs are to keep the job market healthy and to keep a lid on inflation, and it often has to prioritize one because it has just one tool to fix either. Helping one one by moving interest rates often means hurting the other.

Powell said the job market looks OK at the moment, even if “it is a curious kind of balance” where fewer new workers are chasing after fewer new jobs. Inflation, meanwhile, still has the potential to push higher because of Trump’s tariffs.

In sum, Powell said that “the stability of the rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.”

tumbled in the bond market after the release of the text of Powell’s speech.

The yield on the 10-year Treasury fell to 4.26% from 4.33% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do with its main interest rate, sank to 3.69% from 3.79%. That’s a notable move for the bond market.

On Wall Street, Ross Stores rose 0.8% after the retailer reported a stronger profit for its latest quarter than analysts expected. CEO Jim Conroy said sales trends picked up at the end of the quarter in July following a lull in June.

Shares of Nio, a Chinese electric-vehicle maker, that trade in the United States climbed 12.4% after it began pre-sales of its flagship premium SUV model, the ES8.

Nvidia rose 0.8% to trim its loss for the week. The company, whose chips are powering much of the world’s move in to artificial-intelligence technology, has seen its stock struggle recently amid criticism that it and other AI superstars shot too high, too fast and became too expensive.

Nvidia’s CEO, Jensen Huang, said Friday that the company is discussing a potential new computer chip designed for China with the . The chips are graphics processing units, or GPUs, a type of device used to build and update a range of AI systems. But they are less powerful than Nvidia’s top semiconductors today, which cannot be sold to China due to U.S. national security restrictions.

In stock markets abroad, Germany’s DAX returned 0.4% after government data showed that its economy shrank by 0.3% in the second quarter compared with the previous three-month period.

Indexes rose across much of Asia, with stocks climbing 1.4% in Shanghai and 0.9% in South Korea.

Jefferson Lab seeks voluntary 7% workforce reduction

SUMMARY:

 

Jefferson Lab Director Jens Dilling confirmed Thursday that the lab wants 7% of its workforce to voluntarily resign by the end of August.

WHRO reported last week that Dilling told employees that the , commonly known as Jefferson Lab, would need to reduce its workforce as part of a restructuring plan necessary for its future. The -based facility is seeking approximately 65 workers to agree to resign by Tuesday.

During a press conference held after Gov. Glenn Youngkin and U.S. Secretary of Energy Chris Wright toured the lab, Dilling confirmed that WHRO’s report was accurate. The lab opened a “voluntary separation program,” he said, and it will take “full advantage of the people that are ready to step up.”

“There’s still time left for people to step up,” Dilling said. “It is a time where people are talking. We’re taking every single one of those people serious. It’s not about statistics; it’s about people. So it’s a case-by-case discussion, but it is going OK.”

If the lab doesn’t reach its goals by the end of August, WHRO reported, its leadership will implement a plan for employee in January. Dilling, who took over the lab director role from Kimberly Sawyer on June 30, said the restructuring includes a focus on emerging fields such as data science and artificial intelligence, according to the report.

DOE contract decisions

Also at the conference, Wright elaborated on the decision the Department of Energy made earlier this year to cancel its search for a new operator and manager of the facility, stating that it was part of a broader push towards efficiency.

Jefferson Science Associates, the current operator, was initially supposed to have its contract expire at the end of May. In February 2024, under President Joe Biden, the DOE initiated a competition for the selection of a management and operating contractor for Jefferson Lab and issued requests for proposals in July 2024. According to a presentation from an informational meeting in March 2024, the Energy Department had hoped to award the contract in early March.

But the DOE canceled the contract search in February. “The cancellation is necessary because key elements of the solicitation’s statement of work and evaluation criteria do not adequately reflect or align with the priorities of the current administration, as outlined in several executive orders issued by President Trump,” the notice read, without specifying which orders. Since taking office Jan. 20, the president has issued hundreds of executive orders, many of which roll back Biden’s priorities, including initiatives involving DEI and renewable energy.

In March, Wright approved a 12-month extension of the contract for Jefferson Science Associates to continue managing and operating the Jefferson Lab in Newport News. And in July, Jefferson Lab issued a new competitive solicitation for the operator of the lab, with offers due Oct. 3.

Wright was asked on Thursday what was in the original proposal that did not align with the Trump administration’s goals. Wright said he “won’t speak to the details of that,” adding that the goal of the administration is to make science “more efficient.”

“Government just tends to do things less efficient than the private sector, and we’re here to change that,” Wright said. “The first thing I did in my first two weeks in the new role was have all the lab directors come to D.C. and talk to them, and then they prepared a list for me. What are the things I can do to remove bureaucracy and make your decision-making more efficient?”

He spoke of wanting to bring “business principles” to the lab’s operation, and said lab directors “have embraced [the approach] and run with it.” While it’s essential to “deeply cut” government spending, he added, “you won’t see any meaningful cuts to national labs across the country.”

Touting Trump’s agenda

Youngkin and Wright’s visit to Jefferson Lab also served a political purpose — to promote President Donald Trump’s One Big Beautiful Bill Act, which was signed into in July. Youngkin discussed the legislation with manufacturing and energy business leaders during a roundtable discussion, most of which was closed to media.

Secretary of Energy Chris Wright speaks with business leaders in the Hampton Roads region during a roundtable at Jefferson Lab. Photo by Josh Janney

The promotion of the bill is part of a broader recent effort by Republican lawmakers to sell voters on the new law, which is Trump’s most significant legislative accomplishment.

The Journal conducted a nationwide poll in July, which showed that a majority of voters oppose the bill —with 52% against and 42% in favor. Most respondents said they believed the legislation benefits wealth and larger corporations, but hurts the economy, the middle class and poor. These respondents include people relying on programs like Medicaid and food assistance, which had funding cuts made to offset the law’s tax cuts.

Youngkin’s visit focused on the benefits of the legislation. He touted its 100% expensing of manufacturing and construction costs, which he said is a “giant incentive for folks to build today,” citing AstraZeneca’s recently Virginia development plans as an example.

What’s next?

According to WHRO, Jefferson Lab will make final decisions on voluntary resignations of lab employees by Sept. 24, and those approved to resign will exit by Oct. 15. Those who leave — either voluntarily or involuntarily — will receive severance pay of up to $50,000, depending on their length of service with the organization. According to the report, Dilling said the plan was developed internally and not tied to federal .

“This voluntary separation gives us the opportunity to focus on the things that are most important to us — [to] support our mission [and] support the administration,” Dilling said Thursday. “And it is going very well.”

Walmart helps pull Wall Street to its 5th straight loss

Summary

fell to a fifth straight loss on Thursday, hurt by a drop for Walmart and dampened hopes for coming cuts to .

The S&P 500 slipped 0.4%. All its losses have been relatively modest, but it has not risen since setting an all-time high last Thursday. The Dow Jones Industrial Average dropped 152 points, or 0.3%, and the Nasdaq composite fell 0.3%.

Walmart was one of the market’s heaviest weights and dropped 4.5% after reporting a profit for the spring that came up short of analysts’ expectations, while Nvidia and other Big Tech stocks held a bit steadier following two days of sharp swings.

The moves were stronger in the bond market, where Treasury yields rose after a report forced Wall Street to scale back hopes that the may soon deliver relief by cutting interest rates.

The report suggested growth in U.S. business activity is accelerating and hit its fastest rate so far this year. That’s good news for the economy, but the preliminary data from S&P Global also said tariffs helped push up average selling prices at the fastest rate in three years. That’s a discouraging sign for inflation.

Taken all together, such data has historically aligned more with the Federal Reserve considering a hike in interest rates, rather than a cut, according to Chris Williamson, chief business economist at S&P Global Market Intelligence.

No one expects a rate hike to happen, but the overwhelming expectation on Wall Street has been for coming cuts. Traders are betting on a nearly three-in-four chance that the Fed will lower its main interest rate at its next meeting in September, according to data from CME Group. The hope on Wall Street has been that Fed Chair may give hints on Friday that easier rates may be coming.

He will be speaking in Jackson Hole, Wyoming, at an annual conference of central bankers that’s been home to big policy announcements in the past.

A cut in interest rates would be the first of the year, and it would give investment prices and the economy a boost by potentially making it cheaper to borrow to buy cars or equipment. But it could also risk worsening inflation.

The Fed has been hesitant to cut interest rates this year out of fear that President ‘s tariffs could push inflation higher, but a surprisingly weak report on job growth earlier this month suddenly made the job market a bigger worry. Trump, meanwhile, has angrily pushed for cuts to interest rates, often insulting Powell while doing so.

The yield on the 10-year Treasury, which helps set rates for mortgages, rose to 4.32% from 4.29%. The two-year Treasury, which moves more on expectations for what the Federal Reserve will do with short-term interest rates, climbed to 3.78% from 3.74%.

On Wall Street, Walmart dropped even though it reported encouraging growth in revenue during the latest quarter and raised its forecast for profit over its full fiscal year.

Analysts said the market’s expectations were high coming into the report. The Bentonville, Arkansas, company’s stock came into the day with a gain of 13.5% for the year so far, more than the rest of the market.

Big Tech stocks are under even more pressure to deliver bigger profits amid criticism that their stock prices ran too high, too fast and have become too expensive because of the frenzy around artificial-intelligence technology.

Several AI superstar stocks have swung sharply this week, taking some shine off their skyscraping surges for the year, because of such criticism. But they held a bit steadier on Thursday.

Palantir Technologies, which at one point on Wednesday was on track to fall more than 9% for a second straight day before paring its loss, rose 0.1%. Nvidia, the chip company that’s become the poster child of the AI boom, edged down 0.2%.

Coty tumbled 21.6% after the beauty products company reported a loss for the latest quarter, when analysts expected a slight profit. The company, whose brands include CoverGirl and Joop!, said uncertainty about tariffs and the economy are making retailers cautious in their orders.

On the winning side of Wall Street was Nordson, which makes products and systems used for precision dispensing and other things. It delivered profit and revenue for the latest quarter that topped analysts’ expectations, and its stock rose 3%.

All told, the S&P 500 slipped 25.61 points to 6,370.17. The Dow Jones Industrial Average fell 152.81 to 44,785.50, and the Nasdaq composite sank 72.55 to 21,100.31.

In stock markets abroad, indexes were mixed across much of Europe and Asia.

Germany, Europe’s largest economy, saw its DAX return 0.1% after U.S. and European Union officials offered a framework for their trade deal.

Japan’s Nikkei 225 fell 0.6% after a survey showed Japan’s factory activity contracted again in August.

Trump administration is reviewing all 55 million foreigners with US visas in growing crackdown

Summary

WASHINGTON (AP) — The Trump administration said Thursday that it is reviewing more than 55 million people who have valid  for any violations that could lead to deportation, marking a growing crackdown on foreigners who are even permitted to be in the United States.

In a written answer to a question from The Associated Press, the State Department said all U.S. visa holders, which can include tourists from many countries, are subject to “continuous vetting,” with an eye toward any indication that they could be ineligible for permission to enter or stay in the United States.

Should such information be found, the visa will be revoked, and if the visa holder is in the United States, he or she would be subject to deportation.

Since President took office, his administration has focused on deporting migrants illegally in the United States as well as holders of student and visitor exchange visas. The State Department’s new language suggests that the continual vetting process, which officials acknowledge is time-consuming, is far more widespread and could mean even those approved to be in the U.S. could abruptly see those permissions revoked.

The department said it was looking for indicators of ineligibility, including people staying past the authorized timeframe outlined in a visa, criminal activity, threats to public safety, engaging in any form of terrorist activity or providing support to a terrorist organization.

“We review all available information as part of our vetting, including enforcement or immigration records or any other information that comes to light after visa issuance indicating a potential ineligibility,” the department said.

The administration has steadily imposed more restrictions and requirements on visa applicants, including requiring them to submit to in-person interviews. The review of all visa holders appears to be a significant expansion of what had initially been a process focused mainly on students who have been involved in what the government perceives as pro-Palestinian or anti-Israel activity.

Officials say the reviews will include all visa holders’ social media accounts, law enforcement and immigration records in their home countries, along with any actionable violations of U.S. law committed while they were in the United States.

“As part of the Trump Administration’s commitment to protect U.S. national security and public safety, since Inauguration Day the State Department has revoked more than twice as many visas, including nearly four times as many student visas, as during the same time period last year,” the State Department said.

The vast majority of foreigners seeking to come to the U.S. require visas, especially those who want to study or work for extended periods. Among the exceptions for short-term tourist or business visits are citizens of the 40 mainly European and Asian countries belonging to the Visa Waiver Program, which grants those nationals a stay of up to three months without having to apply for a visa.

But large swaths of the world — including highly populated countries like China, India, Indonesia, Russia and most of Africa — are not part of the program, meaning their citizens must apply for and receive visas to travel to the United States.

Earlier this week, the department said that since Trump returned to the White House, it has revoked more than 6,000 student visas for overstays and violations of local, state and federal law, the vast majority of which were assault, driving under the influence of alcohol or drugs and support for terrorism.

It said about 4,000 of those 6,000 were due to actual infractions of laws and that approximately 200 to 300 visas were revoked for terrorism-related issues, including providing support for designated terrorist organizations or state sponsors of terrorism.

Federal officials to take over inspections when troubled Boar’s Head plant reopens

Summary

  • Boar’s Head plant in Jarratt, Virginia set to reopen
  • Facility linked to deadly
  • At least 90 days of strict federal monitoring planned
  • Oversight shifts from state inspectors to federal officials

Federal inspectors will assume direct oversight of a troubled deli meat plant when it reopens after last year’s deadly listeria outbreak, U.S. Agriculture Department officials said.

The Jarratt, Virginia, factory is set to resume operations in the coming months. It will face at least 90 days of heightened monitoring and inspections by federal and Inspection Service officials. Previously, inspections were conducted by state officials who operated on behalf of the agency.

The change aims to “ensure the establishment consistently and effectively implements its corrected food safety plans,” USDA officials said in a statement. It calls for stricter enforcement if lapses occur.

The plant was shuttered nearly a year ago when listeria-tainted liverwurst caused the outbreak that killed 10 people, sickened dozens and forced a recall of more than 7 million pounds of deli products. USDA officials lifted the plant’s suspension in July.

In the years before the outbreak, state inspectors documented numerous problems at the plant, including mold, insects, liquid dripping from ceilings and meat and fat residue on walls, floors and equipment, records showed. They were operating under a cooperative agreement, the Talmadge-Aiken program, that allows state inspectors to conduct federal inspections.

The shift to direct underscores the severity of the problems at the Boar’s Head plant, said Sandra Eskin, a former USDA official who now heads STOP , a consumer advocacy group. It raises concerns about communication between state and federal officials when problems occur, she added.

“Given its history, it’s particularly important that there be robust oversight of that plant,” Eskin said.

Boar’s Head officials said in a statement that they have worked with state and federal regulators “to ensure the successful and safe reopening of the Jarratt facility.”

The company said it has boosted food safety practices in Jarratt and other sites aimed at reducing or eliminating listeria in finished products.

The company has declined to comment on documents obtained by The Associated Press that showed that sanitation problems persist at other Boar’s Head sites in three states.

Between January and July, inspectors in Arkansas, Indiana and a second site in Virginia reported problems that include instances of meat and fat residue left on equipment and walls, drains blocked with meat products, beaded condensation on ceilings and floors, overflowing trash cans and staff who didn’t wear protective hairnets and plastic aprons or wash their hands.

Officials at the 120-year-old company based in Sarasota, Florida, hired a chief food safety officer in May. It also brought in a panel of experts, including Mindy Brashears, a food safety expert nominated by for a second term as the USDA’s undersecretary for food safety.

Brashears, who now directs a food safety center at Texas Tech University, did not respond to requests for comment about Boar’s Head. An automatic email reply said she was traveling out of the country until next week.

Powell to give his last Jackson Hole speech under watchful gaze of Wall Street and the White House

Summary

  • Powell to speak at Fed’s Friday
  • Fed weighs rate cuts amid weak job market signals
  • Inflation concerns argue for holding steady on rates
  • Trump pressures Fed to lower

WASHINGTON (AP) — Just three weeks ago, Chair spoke to reporters after the central bank had kept its key interest rate unchanged for a fifth straight meeting and said the job market was “solid.”

His assessment was important because if the job market is healthy, there is less need for the Fed to cut its key interest rate, as President has demanded. Two days later, the Labor Department issued a report that cast doubt on that assessment, showing hiring was weak in July and much lower than previously estimated in May and June.

So, there will be a lot of attention paid by and the White House to Powell’s high-profile speech Friday at the Fed’s annual economic symposium in Jackson Hole, Wyoming. If the famously data-dependent Powell shifts gears and takes a gloomier view of the job market, that could open the door for a at the Fed’s next meeting in September.

Powell could also stick to the cautious approach he’s maintained all year and reiterate that the central bank needs more time to evaluate the impact of Trump’s sweeping tariffs on inflation.

Most economists expect Powell to signal that a rate cut is likely this year, but won’t necessarily commit to one next month. That could disappoint Wall Street, which has put high odds on a September cut.

Powell’s speech, his last address at Jackson Hole as chair before his term ends in May, will occur against a particularly fraught backdrop. About a week after the jobs numbers, the latest inflation report showed that price growth crept higher in July. Core prices, which exclude the volatile food and energy categories, rose 3.1% from a year ago, above the Fed’s 2% .

Stubbornly elevated inflation pushes the Fed in the opposite direction that weak hiring does: It suggests the central bank’s short-term rate should stay at its current 4.3%, rather than be cut. That would mean other borrowing costs for mortgages, auto loans, and business loans, would stay elevated.

“So the plot has thickened,” said David Wilcox, a former top Fed economist and now director of economic at Bloomberg Economics and also a senior fellow at the Peterson Institute. “The dilemma that the Fed is in has become, if anything, more intense.”

Powell is also navigating an unprecedented level of public criticism by Trump, as well as efforts by the president to take greater control of the Fed, which has long been independent from day-to-day politics.

Most observers credit Powell for his nimble handling of the pressures. An iconic moment in his tenure was Trump’s visit to tour the Fed’s renovation of its office buildings last month. Trump had charged that Powell mismanaged the project, which had ballooned in cost to $2.5 billion, from an earlier estimate of $1.9 billion.

With both the president and Fed chair in white hard hats on the building site, in front of cameras, Trump claimed the cost had mushroomed even further to $3.1 trillion. Powell shook his head, so Trump handed him a piece of paper purporting to back up his claim.

Powell calmly dismissed the figure, noting that the $3.1 billion included the cost of renovating a third building five years earlier.

“That was just such a classic Powell,” said Diane Swonk, chief economist at KPMG. “He just doesn’t get fazed. He’s got a humility that oftentimes I think is lacking among my colleagues in economics.”

Powell appeared to at least temporarily assuage Trump during the tour, after which the president backed off his threats to fire the Fed chair over the project.

The attacks from Trump are the latest challenges for Powell in an unusually tumultuous eight years as Fed chair. Not long after being appointed by Trump in 2018, Powell endured the president’s criticisms as the Fed slowly raised its key rate from the low levels where it had remained for years after the 2008-2009 Great Recession.

Powell then found himself grappling with the pandemic, and after that the worst inflation spike in four decades that occurred as government stimulus checks fueled spending while crippled supply chains left fewer goods available.

Powell then oversaw a rapid series of rate hikes that were widely predicted to cause a recession, but the economy continued plugging ahead.

In his latest attempt to pressure the Fed, on Wednesday Trump called on Fed governor Lisa Cook to step down, after an administration official, Bill Pulte, accused her of mortgage fraud. Pulte is head of the agency that regulates mortgage giants Fannie Mae and Freddie Mac.

Cook said in a statement that she wouldn’t be “bullied” into resigning and added that she was preparing to answer the charges.

For Powell, there’s a difficult decision to make on interest rates. The Fed’s “dual mandate” calls for it to keep prices stable while seeking maximum employment. But while the weak jobs data suggest the need for a cut, many Fed officials fear inflation will get worse in the coming months.

“There is still a fair amount that’s still outstanding,” Raphael Bostic, president of the Fed’s Atlanta branch, said in an interview, referring to tariff-led price hikes. “One feedback we’ve gotten both in our surveys and from direct conversations (with businesses) suggests that many still are looking to see the price that they charge their customers increase from where we are today.”

Other economists, however, point to the sharp slowdown in housing as a sign of a weak economy. The housing market remains mired in a slump partly due to elevated mortgage rates, even though sales of existing homes did rise in July. has also been modest this year, and growth was just 1.2% at an annual rate in the first half of 2025.

“There’s not a lot to like about the economy right now outside of AI,” said Neil Dutta, an economist at Renaissance Macro. “The weakness in the economy isn’t about tariffs,” but instead the Fed’s high rates, he added.

Tariffs aren’t keeping Walmart from attracting shoppers and outpacing Target

Summary

  • posts 4.6% rise in comparable Q2 sales
  • Growth driven by groceries, delivery and apparel
  • Walmart continues to outpace rival
  • Target reports another quarter of declining sales

NEW YORK (AP) — Walmart Inc. powered through an uncertain economic environment and tariff concerns to deliver solid second-quarter financial results Thursday, showing it keeps pulling in shoppers and outpacing peers like Target.

The nation’s largest retailer reported a 4.6% quarterly increase in comparable sales — those coming from established stores and online channels. Company executives said Walmart was attracting customers, particularly higher-income shoppers who may have avoided its stores in the past, with fast deliveries, and trendier clothes.

The company, based in Bentonville, Arkansas, also raised its annual profit and sales outlook.

Walmart’s results differed notably from those of rival Target, which on Wednesday reported another quarter of comparable sales declines. The Minneapolis-based company has struggled to find its footing as customers defect to Walmart and other stores where they think they will find greater bargains and increasingly, the same or better merchandise.

Target’s board of directors named a 20-year company veteran on Wednesday to succeed CEO Brian Cornell when he steps down after 11 years in early 2026.

Walmart said its profitable e-commerce operations, advertising revenue and selection of products with high profit margins have given it flexibility to absorb extra costs from the range of tariffs  has put on foreign products.

Walmart CEO Doug McMillon told investors Thursday that the impact of tariffs also has been gradual enough to mute changes in behavior. When the discounter raised prices on certain items, it’s observed lower- and middle-income customers trading down to lower-priced options or foregoing purchases, he said.

The company will continue to see its costs increase as it replenishes inventory at post-tariff price levels, McMillion said.

“We’re doing what we said we would do,” he said. “We’re keeping our prices as low as we can for as long as we can. Our merchants have been creative and acted with urgency to avoid what would have been additional pressure for our customers and members.”

A growing list of companies, including Procter & Gamble, E.lf. Cosmetics, Black & Decker and Ralph Lauren, told investors in recent weeks that they planned to or already had raised prices because of tariffs, though modestly.

None of that has derailed consumer spending. Shoppers spent at a healthy pace in July, particularly at the nation’s auto dealerships, as signs emerged that President ‘s trade policies were taking a toll on jobs.

Some of that spending may have been shoppers buying furniture and other imported items to get ahead of expected price increases, analysts said.

On Tuesday, Home Depot, the nation’s largest home improvement retailer, reported improved sales during its latest quarter as consumers remained focused on smaller projects. Like Walmart, Home Depot’s performance missed ‘s expectations.

The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of additional costs from tariffs, which are taxes on imports. Home Depot reported comparable sales increase of 1.4% in line with what home improvement rival Lowe’s reported on Wednesday.

But it’s Walmart that serves as a barometer of spending given its outsized power in American retailing. The company maintains that 90% of U.S. households rely on Walmart for a range of products, and more than 150 million customers shop on its website or in its stores every week.

Walmart said in May that prices had started to increase in late April and got higher in May. But it said Thursday that it had introduced 7,400 price rollbacks, or temporary discounts, across the aisles in the latest quarter.

The company said it earned $7.03 billion, or 88 cents per share, for the three-month period that ended July 31. That compares with $4.50 billion, or 56 cents per share, a year ago.

Sales rose nearly 5% to $177.4 billion. Walmart’s 4.6% growth in U.S. comparable sales during the second quarter was slightly higher than its first-quarter gain of 4.5%. Groceries and health and wellness items fueled the growth, the company said.

Global e-commerce sales rose 25%, above the 22% growth in the first quarter.

The retailer said roughly one-third of deliveries from its U.S. stores in recent weeks were orders requesting delivery in three hours or less, and 20% of those orders made it to customers in a half-hour or under.

Despite Walmart’s solid quarter, its stock price was down close to 5% late Thursday morning as its earnings per share came in below what analysts had expected. Analysts were expecting 73 cents per share on sales of $175.93 billion for the quarter, according to FactSet.

Per share results, excluding effects of charges related to certain matters and from business restructuring, was 68 cents, Walmart said.

One $450 million expense was tied to settlements over worker and shopper injury claims, Walmart said. A company spokesperson said the cost per claim was increasing but not the total number.

For the year, Walmart raised its per-share estimates to a range of $2.52 to $2.62, up from a previous estimate of $2.50 to $2.60. It said 2025 sales are anticipated to increase 3.75% to 4.75%, more than it projected in May.