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Critics say a White House ballroom would be a "vanity" project for President Donald Trump. He and the Department of Justice say it's needed for security. View More

A member of the media raises her hand for a question as U.S. President Donald Trump talks while holding up renderings of the planned White House ballroom, aboard Air Force One en route to Joint Base Andrews, Maryland, U.S., March 29, 2026.Elizabeth Frantz | Reuters President Donald Trump, top officials in his administration and many MAGA figures are strongly pushing for a White House ballroom to be built, citing a shooting incident just outside the White House Correspondents' Association dinner that led to Trump's evacuation from the event at the Washington Hilton on Saturday night.Trump and his backers say building the controversial and legally challenged $400 million grand ballroom that he envisions is essential to keeping him — and future presidents — safe from assassination attacks and other security threats.But critics argue that a ballroom at the White House would not be accepted as a substitute for a private venue for nongovernmental events and that presidents would undoubtedly travel around the country and the world, appearing in public at many venues.Despite that first claim, the Department of Justice, in a letter Sunday to a lawyer whose client is challenging the construction of the ballroom, suggested that the WHCA could have its annual dinner at the ballroom once it is built."When the White House ballroom is complete, President Trump and his successors will no longer need to venture beyond the safety of the White House perimeter to attend large gatherings at the Washington Hilton," Assistant Attorney General Brett Shumate wrote to Gregory Craig. Craig is representing the National Trust for Historical Preservation in its lawsuit seeking to block the ballroom from being built without Congress' authorization. Cranes overlook the White House as construction of the new ballroom extension continues, following demolition of the East Wing, in Washington, D.C., April 11, 2026.Al Drago | Getty Images But critics say Trump and his allies are cynically retrofitting their arguments for the ballroom by citing Saturday's incident. They also say there is good reason to believe that he — and any future president — would not stop attending events outside the White House grounds even if the ballroom ends up getting built.They also scoff at the idea that the WHCA — an independent association of journalists who cover the White House — would agree to hold its dinner at the White House, especially when a harsh critic of the media such as Trump occupies the Oval Office.Weijia Jiang, the WHCA's president and a reporter with CBS, did not immediately respond to a request for comment from CNBC on that question. But Kelly McBride, senior vice president and chair of the Craig Newmark Center for Ethics and Leadership at the Poynter Institute, a nonprofit that promotes journalistic ethics and development, said, "There's no way they're going to do that" when she was asked about the idea of the WHCA holding its dinner at the White House.McBride is a critic of the WHCA's annual dinner, describing it in an article published April 16 as "a red-carpet schmoozefest with the powerful sources they cover," saying that it "was never a good idea.""The annual rationalizing that it's just a show of civility to party with the people one covers doesn't overcome the public's skepticism about our independence," McBride wrote. Read more CNBC politics coverageTrump’s lack of focus on economy is spooking Republicans as 2026 election loomsTrump orders Navy to ‘shoot and kill any boat’ laying mines in Hormuz StraitU.S. Navy Secretary John Phelan leaving Trump administration: Pentagon In an interview with CNBC, McBride said, "I can't imagine a world where even people who think keeping this dinner and keeping this invitation to the president think moving it to a venue owned and operated by the White House is a good idea.""It solves the security problem, but it creates a bigger problem for journalists, right? Which is they are now beholden to the White House for this event," she said."They lose their independence," McBride said. "If the original optics are bad, holding it in a ballroom controlled by the White House is completely unacceptable."She said she was not surprised by how quickly Trump and his administration used the shooting incident as an argument for the ballroom."Trump has always been a fantastic opportunist," she said.It is also far from certain that other nonmedia groups that are not affiliated with the U.S. government would agree to hold their signature events, which can involve an appearance by a president, at a ballroom under the control of that president. National Prayer Breakfast also held at Hilton Since the National Prayer Breakfast began in 1953, every American president has attended it, including Trump, who in February gave a speech at the event attended by many members of Congress in which he touted his administration's crackdown on illegal immigration. That breakfast was held at the Washington Hilton, the same venue where it has been since the 1980s, and the same space as Saturday's WHCA event. The Hilton boasts a 30,000-square-foot ballroom, one of the largest in Washington.Rep. Ben Cline, a Virginia Republican who is co-chair of the National Prayer Breakfast, in a statement to CNBC on Tuesday said the event would be held at the Hilton next year."It was an honor to return the event to the Washington Hilton this year, and security will be of the utmost priority when we host it there again," Cline said."While I support the construction of the new White House Ballroom, I remain confident in the Secret Service's ability to secure and protect the President."Virginia Canter, chief counsel and director of ethics and anti-corruption at the Democracy Defenders Fund, an advocacy group that has backed multiple legal challenges to Trump policies, said, "It's obscene that they would use a potentially tragic incident to justify building a gilded ballroom for this individual.""I don't think they took two beats before they tried to pursue this justification of a ballroom," Canter said."What we're saying is that presidents will only hold events in a ballroom? Are we going to have to build another ballroom in Mar-a-Lago?" Canter asked, referring to Trump's residence and private club in Palm Beach, Florida.Canter said that in addition to being a governmental post, the president's position "is also political.""He has to go out amongst the people" at events that are outside the confines of the White House, she said. Trump, other presidents travel the country and world Canter said Trump's security arguments for a ballroom are belied by the events he has traveled to across the country, including rallies."I mean, it's crazy. He goes golfing every weekend," she said.Trump was the target of an assassination attempt on Sept. 15, 2024, while playing golf at the Trump International Golf Club in West Palm Beach. A Secret Service agent thwarted that attempt."The ballroom is a vanity project; it's not a national security project," Canter said. "The ballroom is being created because he wants to add his mark on the White House.""The solution isn't that there's a ballroom every time there's a security event." Construction cranes are seen, from the Washington Monument, on the site of the former East Wing of the White House on April 17, 2026 in Washington, DC.Anna Moneymaker | Getty Images Canter noted that if Trump or other presidents insisted on having events at which they are guests in the ballroom, "It would give him control over the invitation list."She said she expected that would be a nonstarter for the White House Correspondents' Association.White House spokesman Davis Ingle, in a statement Tuesday when asked about criticism of the ballroom, said, "As President Trump has repeatedly said, the White House is long overdue for a safe and secure facility that can host large public gatherings without jeopardizing the President's safety and the safety of all staff, guests, and visitors.""The Ballroom is carefully designed with enhanced security features — including bulletproof glass, drone detection technologies, projectile resistant materials, and a host of other national security functions that will make it the safest ballroom anywhere in the world," Ingle said.Dylan Hedtler-Gaudette, acting vice president of policy and government affairs at the Project On Government Oversight, another advocacy group, said, "There's a pretty legitimate case ... that there needs to be a larger entertainment space" at the White House."I don't think it's a totally preposterous idea," Hedtler-Gaudette said, noting that currently, when the White House hosts large events such as dinners, it sets up a tent on the lawn.But Hedtler-Gaudette objected to the way Trump's ballroom project has been rolled out, without authorization from Congress, without input from other government entities that would normally weigh in on the design and scope of such a building, and with private funding from companies that do business with and are subject to regulatory oversight with the federal government.He also pointed to Trump's reference to the ballroom in a White House press conference shortly after he was evacuated on Saturday after the shooting at the Hilton, and the widespread use of that incident as an argument for the ballroom on Sunday by his supporters on social media."When it's that quick, and it's that universal, it seems pretextual," Hedtler-Gaudette said.He said that the shooting, which led to the arrest of a California man on charges of trying to assassinate Trump and other counts, is "very serious.""Trying to exploit that" while the ballroom is facing legal pushback and while it is not supported by a majority of the public, "just seems pretty gross to me," Hedtler-Gaudette said. He was skeptical that the ballroom, if built, would be used often by outside groups, as Trump has suggested."How likely is the White House to allow a trade association to rent out [the ballroom] to host a dinner?" Hedtler-Gaudette asked.He said that while Trump is in office, groups that might be apt to use the ballroom "I could imagine .... that it would be some sort of the broader MAGA ecosystem," referring to the president's "Make America Great Again" movement.The DOJ, which is defending Trump in the lawsuit challenging the ballroom, in a court filing Monday night doubled down on its attack on the National Trust for Historic Preservation — calling the group's very name "FAKE" — in arguing that a federal judge dissolve an injunction that would block construction."Saturday's narrow miss — which marks the third assassination attempt on President Trump since 2024 —confirms what should have already been obvious," wrote Acting Attorney General Todd Blanche."Presidents need a secure space for large events, that currently does not exist in Washington, D.C., and this Court's injunction stalling this Project cannot defensibly continue, for the sake of the safety of President Trump, future Presidents, and their families, Cabinets, and staff," Blanche wrote. 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Trump had accused the former FBI Director Comey of "calling for the assassination of the president" by sharing the image of the numbers in an Instagram post. View More

FILE PHOTO: FBI Director James Comey testifies before the House Intelligence Committee hearing into alleged Russian meddling in the 2016 U.S. election, on Capitol Hill in Washington, U.S., March 20, 2017.Joshua Roberts | Reuters Former FBI Director James Comey was charged Tuesday with threatening President Donald Trump's life when he posted an image of seashells spelling out "8647" on his Instagram account last year, a federal indictment showed.The indictment, returned by a federal grand jury and dated Tuesday, marks the second time that Comey has been federally indicted since Trump's second presidential term began.The charges came three days after Trump was evacuated from the White House Correspondents' Dinner after an alleged assassin ran toward the ballroom where the event was being held. The Trump administration and its allies have accused Democrats of inciting the attack by spreading incendiary rhetoric about Trump. Zoom In IconArrows pointing outwardsSource: @comey | Instagram Comey, whom Trump has long viewed as a foe, faces one count each of threatening the president and transmitting a threat in interstate commerce, according to the indictment filed in North Carolina.Each count carries a maximum sentence of 10 years in prison, acting Attorney General Todd Blanche said at a press conference later Tuesday. Actual sentences are often far lower than the maximums. An arrest warrant for Comey, requested by federal prosecutors, has been issued, according to his case docket.Comey, in a video response to the indictment on Substack entitled "Seashells," said, "I'm still innocent, I'm still not afraid, and I still believe in the independent federal judiciary, so let's go"But it's really important that all of us remember that this is not who we are as a country," Comey said. "This is not how the Department of Justice is supposed to be. And the good news is we get closer every day to restoring those values. Keep the faith."Comey's lawyer, Patrick Fitzgerald, in a statement said, "Mr. Comey vigorously denies the charges contained in the Indictment filed in the Eastern District of North Carolina.""We will contest these charges in the courtroom and look forward to vindicating Mr. Comey and the First Amendment," Fitzgerald said.The case has been assigned to U.S. District Judge Louise Flanagan, who was appointed to the federal court in eastern North Carolina in 2003 by former President George W. Bush.The indictment quickly drew heated accusations that the Department of Justice was being weaponized to appease Trump by targeting his political enemies.Jimmy Gurulé, a University of Notre Dame Law School professor and former federal prosecutor, called the indictment "an embarrassment to the American criminal justice system.""The damage to the credibility, integrity and reputation of the U.S. Department of Justice may be immeasurable," he said in an email to CNBC. "Every DOJ lawyer that played a role in returning this frivolous indictment should be ashamed."Senate Judiciary Committee ranking member Dick Durbin, D-Ill., said in a statement, "Just like the last baseless indictment against Mr. Comey, this is another case of a weaponized Justice Department lashing out on behalf of a vengeful President."But Blanche said at the press conference that the DOJ is treating Comey the same as it would anyone accused of threatening the president."Threatening the life of the President of the United States will never be tolerated by the Department of Justice," he said. "While this case is unique and this indictment stands out because of the name of the defendant, his alleged conduct is the same kind of conduct that we will never tolerate." The '8647' controversy Trump had accused Comey of "calling for the assassination of the president" by sharing the image of the numbers in the May 15 post."Eighty-six" is a term often used in the restaurant industry when a menu item is discontinued. The Merriam-Webster online dictionary says it can more broadly mean "to eject, dismiss, or remove (someone)."Trump is the 47th U.S. president.Comey at the time denied he was threatening Trump with the seashell post, writing in a follow-up, "I didn't realize some folks associate those numbers with violence." He said he deleted it anyway because "I oppose violence of any kind."The Trump administration investigated Comey over the social media post, but no charges were immediately brought. Read more CNBC politics coverageTrump’s lack of focus on economy is spooking Republicans as 2026 election loomsTrump orders Navy to ‘shoot and kill any boat’ laying mines in Hormuz StraitU.S. Navy Secretary John Phelan leaving Trump administration: Pentagon Around four months later, however, he was indicted in Virginia on one count each of making a false statement to Congress and obstruction.Comey denied the charges, which were brought under Lindsey Halligan, a former personal lawyer for Trump who was appointed interim U.S. attorney for the Eastern District of Virginia.In November, a federal judge dismissed the criminal case against Comey after ruling that Halligan was unlawfully appointed.Blanche noted Tuesday that the charges in the latest Comey case carry a five-year statute of limitations. Trump's foes Comey is one of many of Trump's perceived enemies who have been indicted or federally investigated since the president returned to office in January 2025.Trump, in a September social media post, openly urged then-Attorney General Pam Bondi to take action against Comey, New York Attorney General Letitia James, and Sen. Adam Schiff, D-Calif., claiming "they're all guilty as hell."James was indicted weeks later on charges of bank fraud and making false statements to a financial institution. Her case was also dropped when Halligan's appointment was invalidated by a federal judge.The DOJ investigated Schiff on mortgage fraud allegations, but a federal prosecutor reportedly said she did not believe there was sufficient evidence to charge him.Trump fired Bondi on April 2, following reports that the president was increasingly frustrated with her efforts to pursue his foes, as well as her handling of files related to late sex offender Jeffrey Epstein.Blanche, a former Trump criminal defense lawyer who was serving as deputy attorney general, has taken over the DOJ in an acting capacity.White House chief of staff Susie Wiles admitted in a 2025 Vanity Fair interview that Trump has engaged in "retribution" against his enemies since his return to office. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

New York City's first full-scale casino with live table games opened to gamblers more than a decade after New York voters approved an expansion of gambling. View More

watch nowVIDEO5:3605:36First Vegas-style casino opens in New York CityNews Videos New York City's first full-scale casino with live table games opened to gamblers Tuesday, more than a decade after voters approved an expansion of gambling in the state.Resorts World, owned by Malaysia-based company Genting, beat out gaming giants such as Wynn Resorts, Las Vegas Sands, Caesars Entertainment and MGM Resorts to land one of three new casino licenses.It's the first to launch because it was already operating a slots and electronic gambling facility, one of the most profitable in the world. Resorts World New York City is adjacent to the Aqueduct Racetrack and just a few miles away from John F. Kennedy International Airport."We got the license Dec. 15, and here we are, April 28 welcoming our guests to the new casino floor," Robert DeSalvio, president of Genting Americas East, said in an interview. Lim Kok Thay, executive chairman of Genting Bhd, center, takes a ceremonial first dice roll alongside rapper Nasir "Nas" bin Olu Dara Jones, center right, and Donovan Richards Jr., Queens borough president, third right, at Resorts World New York City (RWNYC) casino in the Queens borough of New York, US, on Tuesday, April 28, 2026. Adam Gray | Bloomberg | Getty Images To run roulette, craps, baccarat and blackjack, Resorts World recruited some dealers from casinos in other states. But it also is running a kind of dealer college, training locals to handle the table action.  The company says the current expansion has already created more than 1,200 new jobs, with another 500 new hires anticipated by this summer.  Though it's not yet open, the company is also building a sportsbook, which will be the city's first. "We have hit the jackpot, Queens!" pronounced Borough President Donovan Richards at the ceremonial opening."I have always dreamt of Queens being an international entertainment hub, and this certainly is part of that puzzle," Richards said.  Queens-raised hip-hop star Nas is a partner in the project and performed at the opening. "This is just the beginning. So this is about to expand and do things that everyone's going to be excited about. So Queens is where it's at," he told CNBC.The project has faced criticism, as some locals are concerned about a potential rise in crime and traffic as a result of the development. For now, the casino will have a city monopoly, for which it says it's paying 63% state taxes on slots revenue and 30% on table game revenue. In its bid for a license, the company included a clause that stipulates its tax rate will lower to the levels its competitors pay once they're up and running.  It will take years for the other casinos to open. Bally's is building a casino on a Bronx golf course purchased from The Trump Organization. Meanwhile, Hard Rock has planned a massive development in partnership with hedge fund manager and Mets owner Steve Cohen near Citi Field, where the baseball team plays.The three companies were selected by the state's gambling commission in 2025 following a years-long process to award licenses to New York's downstate region following an approved 2013 referendum.The state says the three casinos could produce $7 billion in gaming tax revenue over a decade and CBRE projects annual gaming revenues at maturity of up to $5.6 billion under a bull case scenario."We are changing the landscape of New York forever with a building that will never close," said Kevin Jones, chief strategy officer of Resorts World New York. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

A 21-year-old man has pleaded guilty in an Austrian court in connection with an alleged plot to attack a Taylor Swift concert in Vienna, a threat that had led to the cancellation of three shows on her ‘Eras’ tour in 2024. View More

Airbus' first-quarter adjusted operating profit declined by 52% to 300 million euros, down from 624 million euros in the same period last year. View More

In this articleAIR-FRBAFollow your favorite stocksCREATE FREE ACCOUNT File: Visitors pass an Airbus SAS A320 aircraft on the second day of the Farnborough International Air Show in Farnborough, U.K., on Tuesday, July 10, 2012.Matthew Lloyd | Bloomberg | Getty Images Airbus reported quarterly profits that halved from a year ago late Tuesday, as deliveries of its best-selling aircraft slowed.First-quarter sales came in at 12.65 billion euros ($14.82 billion) while earnings per share (EPS) were 74 euro cents. Analysts polled by FactSet had expected sales of 12.58 billion euros and EPS of 44 euro cents. On an adjusted basis, operating profit declined by 52% to 300 million euros, down from 624 million euros in the same period last year and far below FactSet expectations of 378 million euros.Airbus had already disclosed that it delivered 114 commercial aircraft in the first quarter, versus 136 aircraft in the same quarter last year.Airbus reiterated the guidance it issued in mid-February to deliver 870 commercial aircraft in 2026, fewer than the roughly 880 analysts had expected, citing engine shortages due to issues with one of its suppliers, Pratt & Whitney. The guidance doesn't assume any additional disruptions to global trade, air traffic, or supply chain. CEO Guillaume Faury said the company is closely monitoring any potential impact from conflict in the Middle East, without providing further details."In commercial aircraft, we continue to ramp up and produce as per our plan while navigating the shortage of Pratt & Whitney engines. In defence, the focus remains on serving global demand by ramping up production across our portfolio of products and services," Faury said.Airbus' commercial aircraft unit sales fell 11% in the quarter compared to a year ago, while helicopters were unchanged and defence and space grew 7%. Total revenue declined by 7% in the quarter.Gross commercial aircraft orders totalled 408, up 46% from last year. Airbus sentiment cools as Boeing gains ground Analysts say that investor sentiment around Airbus has turned markedly more sour since the start of the year, as its chief rival Boeing is getting back on track after a years-long crisis. Airbus has enjoyed a strong momentum over the past few years as Boeing has been battling a crisis over design and production issues for its best-selling narrowbody plane, the 737 Max. Last week, Boeing reported a narrower-than-expected loss in the first quarter, as it saw improvements across its businesses, including its key commercial aircraft unit. Boeing is in the midst of a turnaround to return to profitability after a series of quality issues and a near-catastrophic blowout of a fuselage door plug in January 2024.Like Airbus, Boeing has also struggled with supply crunches following the Covid-19 pandemic. Boeing CEO Kelly Ortberg said the company is not seeing a slowdown in aircraft orders since the war in the Middle East began in February."We see limited impacts arising from the disruption around the Strait of Hormuz, though we may revisit this assumption if fuel prices remain high into Q3," noted UBS analysts earlier this month. "On the demand side we believe there is sufficient replacement demand that, even in a prolonged period of elevated fuel prices, Airbus is unlikely to see a demand shortfall."— CNBC's Leslie Joseph contributed to this report Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Executives say travelers keep booking despite big jumps in airfare as they seek to cover the cost of fuel. View More

In this articleAALLUVDALUALJBLUULCCFollow your favorite stocksCREATE FREE ACCOUNT A United Airlines plane taxis at Los Angeles International Airport on April 21, 2026 in Los Angeles, California. Justin Sullivan | Getty Images Jet fuel prices have surged this year since the attacks on Iran that began two months ago led to the Strait of Hormuz effectively closing. For now, airline executives say travelers are still flying, increasingly covering the bill.The price spike hit just ahead of spring break and is eating into airline profits this year. But the booking trends show resilient consumers are prioritizing travel, and executives have a bright outlook for the peak summer demand months, which now trail off in August. There are still questions about how demand will hold toward the end of the year since travelers don't tend to book that far in advance.In March, travel-agency ticket sales rose 12% from a year ago to $10.4 billion, with the number of domestic trips up 5% and international up 1%, according to the Airlines Reporting Corp.Domestic economy ticket prices are up 21% from a year earlier to an average of $570, while premium-seat prices rose 17% to an average $1,444 per trip, ARC data released April 16 shows.Despite higher fares, "bookings have remained resilient amidst these changes, which is an encouraging sign," JetBlue Airways CEO Joanna Geraghty said Tuesday on an earnings call. Airlines' expectations U.S. airlines have reported that the Iran war is adding more than $6 billion and counting to their costs this year. But JetBlue and major carriers this month told Wall Street that they expect customers to cover the higher jet fuel costs by early 2027, if not the end of this year. Carriers have trimmed capacity to cut costs, which also can boost airfare.JetBlue on Tuesday forecast second-quarter revenue would increase as much as 11% from a year earlier even as Geraghty called the war's impact the industry's biggest headwind since the Covid pandemic.American Airlines on Thursday said it expects an increase of 13.5% to 16.5% in revenue for the second quarter."We've always been really sharp in terms of managing our load factors, and we see our loads keeping pace with the capacity adds," American CEO Robert Isom said on an earnings call. "That would suggest that we're seeing the real benefit in yields right now."Delta Air Lines and United Airlines, which make up the majority of the U.S. industry's profits, were also upbeat about fare growth, especially as airlines depend more on growth from seats like first class or premium economy that can cost thousands of dollars more than economy-class options.Low-cost, domestic-focused airlines, which tend to have fewer premium options, have struggled. Budget carriers represented by the Association of Value Airlines, including Frontier Airlines and Avelo Airlines are seeking $2.5 billion in relief from the Trump administration to help cover the jump in fuel prices, the group said Monday.Frontier is set to brief Wall Street analysts next week about its outlook for the year and will likely face questions about its ability to recapture costs with lower average fares than large rivals.Even if oil prices come down, it's not likely to mean immediate relief for jet fuel prices, since that product includes refining and transportation costs that take longer to show up."It's possible especially given air ticket prices have grown well below general inflation since COVID" that fares stay high, wrote UBS airline analyst Atul Maheswari on Monday. "As such, we think there is room for airfares to go up and stay higher. This could drive significant earnings growth and margin expansion for airlines in 2027 should jet fuel prices moderate. That said, we think demand would need to hold steady for airlines to maintain pricing next year." Read more CNBC airline newsClock ticks on Spirit Airlines as bondholders weigh Trump bailout. Here’s what could happen nextUnited Airlines CEO confirms he approached American Airlines about mergerBasic business class is here with new, stripped-down United Polaris faresPricy airfare, airport chaos test travelers' willingness to fly this yearAmerican is 'seriously considering' bringing back seat-back screens to narrow-body fleet Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

In what could be Jerome Powell's final meeting as Fed chair, he and his fellow policymakers are likely to continue their cautious approach. View More

US Federal Reserve Chair Jerome Powell arrives for a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. Brendan Smialowski | Afp | Getty Images In what could be Jerome Powell's final meeting as Federal Reserve chair, he is expected to lead his fellow policymakers toward another cautious pause, with stubborn inflation and a resilient labor market leaving little room yet for interest rate cuts.The decision Wednesday will come against a backdrop of elevated energy prices and a central bank that has been above its 2% inflation target for five years at the same time that the labor market has been weak but not in distress. That's not a recipe for easing, at least not yet."On the dual mandate, they'd say we're roughly at a stable labor market," Roger Ferguson, an economist and former vice chair at the Fed, told CNBC. "On the inflation side of the mandate, [there's] a lot more work to be done with a sticky 3% [inflation rate], and I hope they argue, 'we're going to sit tight for a little while to see how this all plays out.'"Similarly, Goldman Sachs economist David Mericle expects the post-meeting statement "is likely to acknowledge the better labor market news and higher inflation numbers but to leave the standing policy guidance unchanged. We expect a strong consensus to stay on hold for now, with only one dissent, as in March."So with little drama over the rate decision — markets are pricing in a 100% chance of the FOMC staying on hold — attention will turn squarely to Powell.Unless something unexpected pops up, the chair's designated successor, Kevin Warsh, appears on track to take over when Powell's term ends in May.The transition clouds the usual signaling value of Powell's post-meeting news conference. Inflation the key Powell's post-meeting news conference, normally a closely watched event for markets, could be viewed as less of a guide to future policy steps than it is a valedictory for a central bank leader who has had one of the most contentious relationships with a president in the institution's history."If Powell were staying, I might be trying to read more in between the lines of what he says at the press conference," said Jerry Tempelman, a former senior analyst at the New York Fed and now vice president of economic and fixed income research at Mutual of America Capital Management. "But given the fact that, in all likelihood, Kevin Warsh will soon be the Fed chair, all the surrounding language, etc., probably becomes less relevant."From a communications standpoint, Tempelman expects the Fed will put the focus on inflation, which most recently ran at 3% on an ex-food and energy basis using the central bank's preferred gauge.Crude oil prices are hovering around $100 a barrel and the average price nationwide for gasoline is surging again, now around $4.18 a gallon, further complicating the Fed's path. Though Fed officials often would look through such spikes as temporary, they also remain cautious about longer-term impacts should the fighting in the Middle East escalate. "Inflation has continued to come in far above anyone's expectations and far above the Fed's target," Tempelman said. "Everyone expects this to be Jay Powell's final meeting. I think also there's very little uncertainty as to what the decision will be, namely, that there will be no change to monetary policy in this meeting, and that from the June meeting on, it will be the Fed ... chaired by Kevin Warsh." What does Powell do next? That does not, however, mean that Powell's future will be settled. The current chair has the option to stay on at the central bank for the final two years of his term as governor. So far, he has provided no indication of what he will do. At the March meeting, he did say he wouldn't be leaving until an investigation into the renovations at the Fed's headquarters is completed. Jeanine Pirro, the U.S. attorney for the District of Columbia, passed the investigation off to the Fed's office of inspector general, a move that politically cleared the way for Warsh's confirmation. However, it's unknown whether that will satisfy the "well and truly over" bar that Powell set in March for his leaving."I'm not sure that the move of this investigation from the Justice Department to someplace else really fully checks the box of putting this behind us," Ferguson said. "I'm not sure that if I were sitting in his seat or [was one of] his advisors, that I would say, let's blow the all clear." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

GM CEO Mary Barra said the Detroit automaker continues to monitor any change in customer spending, but so far, the company's vehicle mix has remained healthy. View More

In this articleGMFollow your favorite stocksCREATE FREE ACCOUNT A Cadillac all-electric 2025 Escalade IQ luxury SUV is displayed during press day of the North American International Auto Show in Detroit, Michigan, September 14, 2023.Rebecca Cook | Reuters DETROIT — General Motors on Tuesday said the Iran war is causing cost increases to its business, but inflated consumer expenses such as higher gas prices haven't deterred buyers from spending on pricey vehicles.GM CEO Mary Barra said the Detroit automaker continues to monitor any change in customer spending but, so far, the company's vehicle mix has remained healthy. GM said it had an $52,000 average transaction price for vehicles during the first quarter, which was in line with last year. The average new vehicle transaction price across the industry for March, the most recent data available, was $49,275, according to Cox Automotive."I think the biggest variable that we're looking at is how long does the conflict last and what does it cause from a cost perspective across logistics, supply chain, and if it ends up having any impact on a shift in mix, but, to date, we really haven't seen that," Barra said during the company's first-quarter earnings call Tuesday with investors.Barra's comments follow consumer confidence plunging to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey earlier this month.They also come after the company reported a 9.7% decline in first-quarter sales compared with an unseasonably high March 2025. GM also said it's dealing with tighter inventories, specifically on its full-size pickup trucks, as the company retooled for updates to the vehicles for later this year.Barra said if there are major shifts, including a more apparent move into less expensive or all-electric vehicles, that the company feels it's well positioned to meet those needs as well. watch nowVIDEO6:3706:37GM CFO Paul Jacobson on Q1 results, $500M tariff relief benefit and 2026 guidanceSquawk Box GM CFO Paul Jacobson and Barra said the Detroit automaker is continuing to offset higher costs as best as it can through warranty improvements, cost efficiencies and potentially by deferring some hiring."While our operating performance remains strong, as reflected in our excellent first-quarter results, the war in Iran has raised our costs and its duration remains uncertain," Barra said. "We are working to offset these cost pressures by reducing spending in other areas and by continuing to find efficiencies across the business."The GM executives specifically singled out rising energy and logistics costs due to the Iran war and its impact on oil as driving up costs, but they declined to disclose an exact amount of the impact.On a broader basis, GM on Tuesday said its first-quarter performance is expected to offset incremental increases in commodity and freight costs — including from logistics and higher DRAM chips — of $1.5 billion to $2 billion for the year.Dynamic random access memory, or DRAM, chips are semiconductors that are essential for powering infotainment, digital clusters, advanced driver assistance systems and EV systems in vehicles.But the DRAM costs aren't related to the Iran war. Those price hikes are coming from increasing demand for the chips, including outside the automotive industry, according to industry experts at S&P Global Mobility."Automotive is not the only industry vying for DRAM. The current supply crunch is driven by the AI explosion, especially in data centers, where high-bandwidth memory (HBM) DRAM is in high demand. As a result, major DRAM manufacturers are reallocating wafer capacity to serve this more lucrative market," according to a Feb. 26 post from S&P Global Mobility. Jacobson on Tuesday said the company has "no real concerns" about supply chain shortages involving the Iran war, specifically concerning raw materials, at the moment. "We're not projecting or worried about any shortages right now, and I think the supply chain team has continued to prove their resolve through yet another challenge, as we've seen them do in years past," he said.GM on Tuesday said it has, and will continue to, divert shipments of vehicles, including its highly profitable full-size pickups and SUVs, to the U.S. instead of the Middle East amid the war."Usually that's a very strong market. So after this conflict ends, I think there's upside there," Barra said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

OpenAI's generative AI models are becoming available on Amazon's cloud a day after the AI company revamped its relationship with longtime partner Microsoft. View More

In this articleCRWVORCLFollow your favorite stocksCREATE FREE ACCOUNT Amazon Web Services CEO Matt Garman speaks at the HumanX conference in San Francisco on April 7, 2026.Big Event Media | HumanX Conference | Getty Images A day after OpenAI revamped its relationship with Microsoft so that it can run all of its products on any cloud, the artificial intelligence company said its models will be available via Amazon Web Services. AWS customers can experiment with OpenAI's models as well as its Codex agent for writing code, all through Amazon Bedrock, the companies announced on Tuesday. The services will become generally available in the next few weeks."This is what our customers have been asking us for for a really long time," AWS CEO Matt Garman said at a launch event in San Francisco. Until now, developers could draw on so-called open-weight models from OpenAI that came to AWS in August.OpenAI CEO Sam Altman sent a recorded message about the announcement, as he's currently in court across the Bay Bridge in Oakland for his case against Elon Musk. "I wish I could be there with you in person today, my schedule got taken away from me today," Altman said in the video. "I wanted to send a short message, though, because we're really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team."A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said. Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI's revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but "has also limited our ability to meet enterprises where they are — for many that's Bedrock."On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement "very interesting" in a post on X, adding that more details would be shared on Tuesday.OpenAI and Amazon have been getting closer in other ways.In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties. Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman's company. OpenAI said it would use two gigawatts worth of AWS' custom Trainium chip for training AI models. The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans. "This is ridiculous," Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. "We are totally aligned on buying as much compute as we can and working hard on it together every day."WATCH: OpenAI reportedly missed revenue targets: Here's what you need to know watch nowVIDEO5:1205:12OpenAI reportedly missed revenue targets: Here's what you need to knowSquawk on the Street Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

JetBlue, United, Frontier and others added service to airports Spirit services after the carrier filed for bankruptcy for the second time in less than a year. View More

In this articleJBLUFollow your favorite stocksCREATE FREE ACCOUNT A JetBlue Airways Airbus A321 airplane departs from Los Angeles International Airport en route to New York on Oct. 17, 2025 in Los Angeles, California.Kevin Carter | Getty Images News | Getty Images JetBlue Airways is moving forward with its flight plans at Fort Lauderdale–Hollywood International Airport, its president said, regardless of whether the airport's No. 1 carrier, Spirit Airlines, gets a government bailout.JetBlue, United Airlines, Frontier Airlines, Breeze Airways and others added flights last year at Fort Lauderdale, Florida, which is Spirit's home hub as well as at other major airports where Spirit has a large presence. Those moves came shortly after Spirit filed for Chapter 11 bankruptcy protection for the second time in less than a year.As a possible liquidation looms, budget carrier Spirit is in talks with the Trump administration for a potential bailout that could include a $500 million loan that could also give the government an up to 90% stake, people familiar with the matter have said, requesting anonymity to talk about the deal before it's public. The airline's lenders are assessing a deal this week.Spirit has cut its capacity in recent years to save on costs. In February, it still had the most market share at Fort Lauderdale with nearly 25%, down from more than 28% a year earlier, while JetBlue's share grew to more than 20%, up from 18.5% a year earlier, according to the latest available statistics from the airport."We have now added significant capacity" there, JetBlue's president, Marty St. George, said on an earnings call Tuesday. "We've doubled the size of our next biggest competitor. "We did not go into this with any expectation of Spirit going away," he added. "What we have done is we've taken advantage of gate availability that they've created with some of their pulldowns."He added that JetBlue was happy with its unit revenue there, even with the capacity additions. "I think what it shows is that the JetBlue value proposition resonates in South Florida," he said.The industry is grappling with a surge in fuel prices, but JetBlue and other carriers have so far reported that customers continue to book flights.The Association of Value Airlines, of which JetBlue isn't a member, on Monday said it is seeking $2.5 billion from the Trump administration to help offset the jump in fuel, airlines' second-biggest expense after labor.JetBlue CEO Joanna Geraghty said the airline is open to "anything and everything, assuming the terms would make sense for JetBlue," but added the airline is focused on its JetForward strategy to return to profitability, including adding new products like domestic first-class seats.She said that the carrier is watching the situation and seeing what "shakes out with Spirit and value carriers and whether anything comes their way," she said. Read more CNBC airline newsClock ticks on Spirit Airlines as bondholders weigh Trump bailout. Here’s what could happen nextUnited Airlines CEO confirms he approached American Airlines about mergerBasic business class is here with new, stripped-down United Polaris faresPricy airfare, airport chaos test travelers' willingness to fly this yearAmerican is 'seriously considering' bringing back seat-back screens to narrow-body fleet Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.