Every weekend, I recap “news you can use” from the week — a handful of quotes from major (and often expensive) news sources — so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
Supreme Court rejects Trump’s tariffs. Here’s what the president could try to use instead. (Feb 20, MarketWatch)
The U.S. Supreme Court has dealt a blow to President Donald Trump’s economic agenda, saying he exceeded his authority in using a 1977 law to justify a large swath of his tariffs.
Yet the Supreme Court’s decision does not mean that Trump is now entirely unable to slap tariffs on other countries’ products. The president, for example, has at his disposal Section 232 of the Trade Expansion Act of 1962, the same tool he used to impose import taxes on steel, aluminum, lumber and furniture, and his sector-based tariffs were not getting addressed in the Supreme Court case.
Fed’s favorite inflation gauge shows it has more work to do to tame price increases (Feb 20, MarketWatch)
The personal consumption expenditures index rose 0.4% in December, the government said Friday in a reported delayed by federal shutdowns.
The increase in inflation in the 12 months ended in December rose to 2.9% from 2.8%.
The Fed has been trying for a few years now to reduce the rate of inflation to 2%. It appeared to be on track to move close to its goal last year before the Trump administration jacked up U.S. tariffs to the highest level in decades. Inflation rose following the tariffs, though not as much as feared.
US GDP Grows 1.4%, Missing Forecasts on Shutdown, Trade (Feb 20, Bloomberg)
The weak quarterly result — which was below all forecasts in a Bloomberg survey of economists — came as the US government was shut down for almost half of the three-month period.
Less than an hour before the data were released, President Donald Trump posted on social media that the shutdown would cost the US “at least two points in GDP.”
U.S. Gathers the Most Air Power in the Mideast Since the 2003 Iraq Invasion (Feb 19, Wall Street Journal):
Representatives from the U.S. and Iran met in Geneva this week to negotiate a possible deal over Iranian enrichment of uranium. White House press secretary Karoline Leavitt said there had been “a little bit of progress” in those talks, but added, “We’re still very far apart on some issues.” Iran is expected to offer a more detailed proposal to the U.S. in the next few weeks, Leavitt said.
US Trade Deficit Widens, Capping One of Biggest Since 1960 (Feb 19, Bloomberg):
The goods and services trade gap expanded from the prior month to $70.3 billion, Commerce Department data showed Thursday. The shortfall culminated in a full-year deficit of $901.5 billion, still one of the largest in data back to 1960.
Jobless claims fall to lowest level of the year, signaling a more stable labor market (Feb 19, MarketWatch):
Claims for state unemployment benefits fell by 23,000 to 206,000 in the week ended Feb. 14, the Labor Department said Thursday.
The drop in claims much more than expected. Economists polled by The Wall Street Journal had estimated new claims would fall to 223,000 from the initial estimate last week of 227,000.
AI Spending Fears May Be Overdone as the Tech Selloff Reshapes the Market (Feb 18, Barron’s):
Investors are concerned about AI investment spending, with hyperscalers committing $650 billion to data centers this year, a 60% increase.
Recent market selloffs, including a 2% S&P 500 decline, reflect investor fears of AI disruption, shifting funds from software to “real economy” sectors.
Experts suggest the market overlooks nuances, seeing opportunities in software companies with proprietary data and undervalued sectors amid AI fears.
US Industrial Production Increases by Most in Nearly a Year (Feb 18, Bloomberg):
Manufacturing output, which accounts for three-fourths of total industrial production, rose 0.6% — also the most since February 2025. The advance was broad and included strong gains in business equipment and consumer goods production.
A separate report Wednesday showed orders for business equipment increased in December by more than projected, suggesting solid capital investment at the end of last year that will help underpin production.
Housing starts jump to highest level in five months, showing momentum going into the new year (Feb 18, MarketWatch):
New U.S. home construction rose 6.2% in December to 1.40 million units, the highest level since July, indicating a rebound.
Building permits, a future indicator, increased 4.3% to 1.45 million in December, exceeding expectations.
Construction faces headwinds from labor shortages (nearly 300,000 openings) and high mortgage rates.
It’s Economic Data Vs. AI Fears for Stocks This Week. There’s Only One Winner. (Feb 17, Barron’s):
More key economic releases lie ahead in this holiday-shortened week. The Federal Reserve’s preferred inflation metric–core personal consumption expenditures index–Friday is likely to be the most important one, but there’s also fourth quarter GDP growth and on the same day and Fed minutes Wednesday.
Iran partially closes Strait of Hormuz, a vital oil choke point, as Tehran holds talks with U.S. (Feb 17, CNBC):
Iranian state media on Tuesday reported a partial and temporary closure of the Strait of Hormuz, widely considered one of the world’s most important oil choke points.
It comes as the U.S. and Iran hold nuclear talks in the Swiss city of Geneva.
Oil prices were last seen trading lower, erasing earlier gains, as the talks concluded.supervisor and real estate.
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