US applications for jobless benefits fell last week and remain in historically healthy range

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By MATT OTT, Associated Press Business Writer

The number of Americans filing for jobless benefits fell modestly last week, remaining in the historically low range since the U.S. economy emerged from the COVID-19 pandemic.

Applications for unemployment benefits for the week ending Aug. 9 fell by 3,000 to 224,000, the Labor Department reported Thursday. That’s below the 230,000 new applications that economists had forecast.

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Weekly applications for jobless benefits are seen as a proxy for U.S. layoffs and have mostly settled in a historically healthy range between 200,000 and 250,000 since COVID-19 throttled the economy in the spring of 2020.

Two weeks ago, a grim July jobs report sent financial markets spiraling, spurring President Donald Trump to fire Erika McEntarfer, the head of Bureau of Labor Statistics, which tallies the monthly employment numbers. The BLS does not contribute to the weekly unemployment benefits report except to calculate the annual seasonal adjustments.

U.S. employers added just 73,000 jobs in July, well short of the 115,000 analysts forecast. Worse, revisions to the May and June figures shaved 258,000 jobs off previous estimates and the unemployment rate ticked up to 4.2% from 4.1%.

Without citing evidence, Trump accused McEntarfer of rigging the jobs data for political reasons. On Monday, Trump nominated E.J. Antoni, chief economist at the conservative Heritage Foundation, to head the BLS.

While layoffs remain low by historical standards, there has been noticeable deterioration in the labor market this year and mounting evidence that people are having difficulty finding jobs.

U.S. employers posted 7.4 million job vacancies in June, down from 7.7 million in May. The number of people quitting their jobs — a sign of confidence in finding a better job — fell in June to the lowest level since December.

Some major companies have announced job cuts this year, including Procter & GambleDowCNNStarbucksSouthwest AirlinesMicrosoftGoogle and Facebook parent company MetaIntel and The Walt Disney Co. also recently announced staff reductions.

Many economists contend that Trump’s erratic rollout of tariffs against U.S. trading partners has created uncertainty for employers, who have grown reluctant to expand their payrolls.

The deadline on most of Trump’s proposed taxes on imports kicked in last week, though some deals have been made and other deadlines for negotiations — most importantly with China — have been extended. Unless Trump reaches deals with countries to lower the tariffs, economists fear they could act as a drag on the economy and spark another rise in inflation.

Also Thursday, new government data showed that U.S. wholesale inflation surged unexpectedly last month, a sign that Trump’s sweeping taxes on imports are pushing costs higher.

Thursday’s jobless benefits report showed that the four-week average of claims, which smooths out some of the week-to-week volatility, ticked up by 750 to 221,750.

The total number of Americans collecting unemployment benefits for the previous week of Aug. 2 fell by 15,000 to 1.95 million.

US producer prices surge in July as Trump tariffs push costs higher

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By PAUL WISEMAN, Associated Press Economics Writer

WASHINGTON (AP) — U.S. wholesale inflation surged unexpectedly last month, signaling that President Donald Trump’s sweeping taxes on imports are pushing costs up and that higher prices may be headed toward consumers.

The Labor Department reported Thursday that its producer price index — which measures inflation before it hits consumers— rose 0.9% last month from June, biggest jump in more than three years. Compared with a year earlier, wholesale prices rose 3.3%,

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The numbers were much higher than economists had expected.

Prices rose faster for producers than consumers last month, suggesting that U.S. importers may, for now, be eating the cost of Trump’s tariffs rather than passing them on to customers.

That may not last.

“It will only be a matter of time before producers pass their higher tariff-related costs onto the backs of inflation-weary consumers,” wrote Christopher Rupkey, chief economist at fwdbonds, a financial markets research firm.

Excluding volatile food and energy prices, so-called core producer prices rose 0.9% from June, biggest month-over-month jump since March 2022. Compared with a year ago, core wholesale prices rose 3.7% after posting a 2.6% year-over-year jump in June.

The wholesale inflation report two days after the Labor Department reported that consumer prices rose 2.7% last month from July 2024, same as the previous month and up from a post-pandemic low of 2.3% in April. Core consumer prices rose 3.1%, up from 2.9% in June. Both figures are above the Federal Reserve’s 2% target.

The new numbers suggest that slowing rent increases and cheaper gas are at least partly offsetting the impacts of Trump’s tariffs. Many businesses are also likely still absorbing much of the cost of the duties instead of passing them along to customers via higher prices.

Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also watch it because some of its components, notably measures of health care and financial services, flow into the Federal Reserve’s preferred inflation gauge — the personal consumption expenditures, or PCE, index.

Melania Trump demands Hunter Biden retract ‘extremely salacious’ Epstein comments

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By JONATHAN J. COOPER, Associated Press

WASHINGTON (AP) — First lady Melania Trump demanded that Hunter Biden retract comments linking her to sex trafficker Jeffrey Epstein and threatened to sue if he does not.

Trump takes issue with two comments Biden, son of former President Joe Biden, made in an interview this month with American journalist Andrew Callaghan. He alleged that Epstein introduced the first lady to now-President Donald Trump.

FILE – Hunter Biden listens while his father, President Joe Biden, speaks during a Hanukkah reception in the East Room of the White House in Washington, Dec. 16, 2024. (AP Photo/Rod Lamkey, Jr.)

The statements are false, defamatory and “extremely salacious,” Melania Trump’s lawyer, Alejandro Brito, wrote in a letter to Biden. Biden’s remarks were widely disseminated on social media and reported by media outlets around the world, causing the first lady “to suffer overwhelming financial and reputational harm,” he wrote.

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Biden made the Epstein comments during a sprawling interview in which he lashed out at “elites” and others in the Democratic Party he says undermined his father before he dropped out of last year’s presidential campaign.

“Epstein introduced Melania to Trump. The connections are, like, so wide and deep,” Biden said in one of the comments Trump disputes. Biden attributed the claim to author Michael Wolff, whom Trump disparaged in June as a “Third Rate Reporter.” He has accused Wolff of making up stories to sell books.

The first lady’s threats echo a favored strategy of her husband, who has aggressively used litigation to go after critics. Public figures like the Trumps face a high bar to succeed in a defamation lawsuit.

The president and first lady have long said they were introduced by Paolo Zampolli, a modeling agent, at a New York Fashion Week party in 1998.

The letter is dated Aug. 6 and was first reported Wednesday by Fox News Digital.

Abbe Lowell, a lawyer who has represented Biden in his criminal cases and to whom Brito’s letter is addressed, did not immediately respond to a request for comment late Wednesday.

Trump’s friendly-to-frustrated relationship with Putin takes the spotlight at the Alaska summit

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By MICHELLE L. PRICE and VLADIMIR ISACHENKOV, Associated Press

WASHINGTON (AP) — Donald Trump’s summit with Vladimir Putin in Alaska on Friday could be a decisive moment for both the war in Ukraine and the U.S. leader’s anomalous relationship with his Russian counterpart.

Trump has long boasted that he’s gotten along well with Putin and spoken admiringly of him, even praising him as “pretty smart” for invading Ukraine. But in recent months, he’s expressed frustrations with Putin and threatened more sanctions on his country.

FILE – First lady Melania Trump, left, watches as President Donald Trump and Russian President Vladimir Putin welcome each other at the Presidential Palace in Helsinki, Finland, July 16, 2018, prior to Trump’s and Putin’s one-on-one meeting. (Alexei Nikolsky, Sputnik, Kremlin Pool Photo via AP)

At the same time, Trump has offered conflicting messages about his expectations for the summit. He has called it “really a feel-out meeting” to gauge Putin’s openness to a ceasefire but also warned of “very severe consequences” if Putin doesn’t agree to end the war.

For Putin, Friday’s meeting is a chance to repair his relationship with Trump and unlace the West’s isolation of his country following its invasion of Ukraine 3 1/2 years ago. He’s been open about his desire to rebuild U.S.-Russia relations now that Trump is back in the White House.

The White House has dismissed any suggestion that Trump’s agreeing to sit down with Putin is a win for the Russian leader. But critics have suggested that the meeting gives Putin an opportunity to get in Trump’s ear to the detriment of Ukraine, whose leader was excluded from the summit.

“I think this is a colossal mistake. You don’t need to invite Putin onto U.S. soil to hear what we already know he wants,” said Ian Kelly, a retired career foreign service officer who served as the U.S. ambassador to Georgia during the Obama and first Trump administrations.

Republican Sen. Lindsey Graham of South Carolina, a longtime Russia hawk and close ally of Trump’s, expressed optimism for the summit.

“I have every confidence in the world that the President is going to go to meet Putin from a position of strength, that he’s going to look out for Europe and Ukrainian needs to end this war honorably,” Graham wrote on social media.

A look back at the ups and downs of Trump and Putin’s relationship:

Russia questions during the 2016 campaign

Months before he was first elected president, Trump cast doubt on findings from U.S. intelligence agencies that Russian government hackers had stolen emails from Democrats, including his opponent Hillary Clinton, and released them in an effort to hurt her campaign and boost Trump’s.

In one 2016 appearance, he shockingly called on Russian hackers to find emails that Clinton had reportedly deleted.

“Russia, if you’re listening,” Trump said, “I hope you’re able to find the 30,000 emails that are missing.”

FILE – President Donald Trump, left, and Russian President Vladimir Putin shake hands at the beginning of a meeting at the Presidential Palace in Helsinki, Finland, July 16, 2018. (AP Photo/Pablo Martinez Monsivais, File)

Questions about his connections to Russia dogged much of his first term, touching off investigations by the Justice Department and Congress and leading to the appointment of special counsel Robert Mueller, who secured multiple convictions against Trump aides and allies but did not establish proof of a criminal conspiracy between Moscow and the Trump campaign.

These days, Trump describes the Russia investigation as an affinity he and Putin shared.

“Putin went through a hell of a lot with me,” Trump said earlier this year. “He went through a phony witch hunt where they used him and Russia. Russia, Russia, Russia, ever hear of that deal?”

Putin in 2019 mocked the investigation and its ultimate findings, saying, “A mountain gave birth to a mouse.”

‘He just said it’s not Russia’

Trump met with Putin six times during his first term, including a 2018 summit in Helsinki, when Trump stunned the world by appearing to side with an American adversary on the question of whether Russia meddled in the 2016 election.

FILE – President Donald Trump, left, and Russian President Vladimir Putin, right, arrive for a one-on-one-meeting at the Presidential Palace in Helsinki, Finland, July 16, 2018. (AP Photo/Pablo Martinez Monsivais, File)

“I have great confidence in my intelligence people, but I will tell you that President Putin was extremely strong and powerful in his denial today,” Trump said. “He just said it’s not Russia. I will say this: I don’t see any reason why it would be.”

Facing intense blowback, Trump tried to walk back the comment a full 24 hours later. But he raised doubt on that reversal by saying other countries could have also interfered.

Putin referred to Helsinki summit as “the beginning of the path” back from Western efforts to isolate Russia. He also made clear that he had wanted Trump to win in 2016.

“Yes, I wanted him to win because he spoke of normalization of Russian-U.S. ties,” Putin said. “Isn’t it natural to feel sympathy to a person who wanted to develop relations with our country?”

Trump calls Putin ‘pretty smart’ after invasion of Ukraine

The two leaders kept up their friendly relationship after Trump left the White House under protest in 2021.

After Putin invaded Ukraine in 2022, Trump described the Russian leader in positive terms.

“I mean, he’s taking over a country for $2 worth of sanctions. I’d say that’s pretty smart,” Trump said at his Mar-a-Lago resort. In a radio interview that week, he suggested that Putin was going into Ukraine to “be a peacekeeper.”

Trump repeatedly said the invasion of Ukraine would never have happened if he had been in the White House — a claim Putin endorsed while lending his support to Trump’s false claims of election fraud.

“I couldn’t disagree with him that if he had been president, if they hadn’t stolen victory from him in 2020, the crisis that emerged in Ukraine in 2022 could have been avoided,” he said.

Trump also repeatedly boasted that he could have the fighting “settled” within 24 hours.

Through much of his campaign, Trump criticized U.S. support for Ukraine and derided Ukrainian President Volodymyr Zelenskyy as a “salesman” for persuading Washington to provide weapons and funding to his country.

Revisiting the relationship

Once he became president, Trump stopped claiming he’d solve the war in Ukraine in 24 hours. In March, he said he was “being a little bit sarcastic” when he said that.

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Since the early days of Trump’s second term, Putin has pushed for a summit while trying to pivot from the Ukrainian conflict by emphasizing the prospect of launching joint U.S.-Russian economic projects, among other issues.

“We’d better meet and have a calm conversation on all issues of interest to both the United States and Russia based on today’s realities,” Putin said in January.

In February, things looked favorable for Putin when Trump had a blowup with Zelenskyy at the White House, berating him as “disrespectful.”

In late March, Trump still spoke of trusting Putin when it came to hopes for a ceasefire, saying, “I don’t think he’s going to go back on his word.”

But a month later, as Russian strikes escalated, Trump posted a public and personal plea on his social media account: “Vladimir, STOP!”

He began voicing more frustration with the Russian leader, saying he was “Just tapping me along.” In May, he wrote on social media that Putin “has gone absolutely CRAZY!”

Earlier this month, Trump ordered the repositioning of two U.S. nuclear submarines “based on the highly provocative statements” of the country’s former president, Dmitry Medvedev.

Trump’s vocal protests about Putin have tempered somewhat since he announced their meeting, but so have his predictions for what he might accomplish.

Speaking to reporters Monday, Trump described their upcoming summit not as the occasion in which he’d finally get the conflict “settled” but instead as “really a feel-out meeting, a little bit.”

“I think it’ll be good,” Trump said. “But it might be bad.”

Isachenkov reported from Moscow. Associated Press writer Matthew Lee contributed to this report.