Category: Business

(NEW YORK) — Hiring slowed in April as a rise in fuel prices hammered shoppers weeks into the war with Iran, U.S. government data on Friday showed.

The U.S. added 115,000 jobs in April, according to the report, which marked a cooldown from 178,000 jobs added in March. The reading for April exceeded economists’ expectations.

The unemployment rate held steady at 4.3% in April, the Bureau of Labor Statistics (BLS) said. Unemployment remains low by historical standards.

The U.S. Bureau of Labor Statistics (BLS) collected the previous month’s survey data through the second week of March, before the full effects of the oil shock set off by the war.

As in previous months, the health care industry stood out as a top source of hiring in April, adding 37,000 jobs, the BLS said. The retail sector, as well as transportation and warehousing, also contributed to the increase in hiring.

Employment in the federal government continued to decline in April, shedding 9,000 jobs, the BLS said. The federal government has lost 348,000 jobs, or nearly 12% of its workforce, since October 2024, a month before President Donald Trump was elected.

The hiring figure for March was revised upward from 178,000 jobs added to 185,000 jobs added. Hiring for February, however, was revised downward from a loss of 133,000 jobs to a loss of 156,000 jobs.

The fresh data arrived as the war continues to drive up gasoline prices and borrowing costs, threatening a drag on the economy.

The U.S. added an average of about 15,000 jobs per month in 2025, BLS data showed. That performance indicated a drop-off from 186,000 jobs added each month in 2024.

The Middle East conflict, which began on Feb. 28, prompted Iran’s effective closure of the Strait of Hormuz, a critical waterway that facilitates the transport of about one-fifth of the worldwide supply of oil.

The U.S. is a net exporter of petroleum, meaning the country produces more oil than it consumes. But since oil prices are set on a global market, U.S. prices move in response to swings in worldwide supply and demand.

The price of an average gallon of gas stands at $4.54 as of Friday, marking an increase of $1.56 per gallon since the war started, AAA data showed. That amounts to a roughly 50% jump in about two-and-a-half months.

In theory, a prolonged oil shortage could drive up prices for a vast array of goods, sapping energy from consumer spending, which powers most of the nation’s economic growth.

A potential jump in costs for additional goods delivered through the Strait of Hormuz — such as fertilizer and diesel fuel — could also raise prices beyond gasoline, putting pressure on the Federal Reserve to hike interest rates in an effort to quell inflation.

Last month, Fed Chair Jerome Powell described the economic outlook as “highly uncertain.”

“We’re kind of waiting to see what happens with events in the Middle East,” Powell said.

The Fed has opted to hold interest rates steady at three consecutive meetings since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times.

The benchmark interest rate stands at a level between 3.5% and 3.75%. That figure marks a significant drop from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.

If the Fed moved to raise interest rates, it would hike borrowing costs for many consumer and business loans, risking a slowdown in hiring.

Markets peg a roughly 70% chance of interest rates holding steady for the remainder of this year, according to the CME FedWatch Tool.

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(NEW YORK) — Sky-high gasoline prices are hammering drivers across the United States as the Iran war chokes off global oil supply. California, however, may be feeling the sting more than anywhere else.

The average price of a gallon of gasoline in California clocks in at $6.13, standing 36% higher than the national average, AAA data showed. Some elected officials in the state have warned of a potential oil and gas shortage that could push prices up even further.

Siva Gunda, the vice chairman of the California Energy Commission, on Tuesday said at a hearing of the state assembly that California retains enough gasoline to satiate demand over the coming weeks.

“I do not see presently — at least up to six weeks — a supply shortfall,” Gunda said. “Beyond that, based on what we’re hearing from the industry and what we’ve observed, the pricing will move molecules to California, but it will come at a price.”

David Alvarez, a Democratic California state assembly member who represents Southern San Diego, warned of the potential impact on consumers.

“For six weeks, at least, there seems to be some certainty. But almost as certain is if this situation continues after six weeks, we would likely see some price increases,” Alvarez said.

Fuel prices in California typically run higher than other states, even in the best of times. That usual price disparity stems from regulations and taxes imposed in the Golden State, among other factors.

The Iran war has exacerbated the price pressure, exposing California’s dependence in large part on foreign imports, some analysts said. A shutdown of some key oil refineries in recent months worsened California’s vulnerability, slashing the state’s gasoline output in the absence of alternative fuel sources.

Still, the drop-off in gas supply is unlikely to produce a shortage of product at local gas stations, since an ongoing surge in prices should deter some buyers, analysts said. Under such a scenario, known as “demand destruction,” high prices make gas unaffordable for some drivers, forcing them to forgo gasoline use altogether.

“A shortage within the continental U.S. would take a really extreme situation, since prices respond to supply and demand,” Susan Bell, a senior vice president at the consulting firm Rystad Energy, told ABC News.

The Middle East conflict, which began on Feb. 28, prompted Iran’s effective closure of the Strait of Hormuz, a critical waterway that facilitates the transport of about one-fifth of the worldwide supply of oil. As a result, global oil prices have soared more than 50%.

The vast majority of oil that passes through the strait is bound for Asian markets, but some of it reaches the United States, including California. That dependence has worsened a widely felt problem: since oil prices are set on a global market, prices have climbed for just about everyone as buyers chase fewer barrels of crude.

California imports about three-quarters of its oil from foreign nations and Alaska, California Energy Commission (CEC) data shows. Roughly 30% of the state’s oil comes from the Middle East, especially Iraq and Saudi Arabia, according to the agency.

“California is challenged buying crude oil because they did buy from the Middle East,” Bell said.

The oil bottleneck has driven up the price of crude, straining the state’s supply chain. But the shortfall of gasoline in the state owes primarily to a decline in the availability of refined products, some analysts said.

California ships in a portion of its auto fuel from Asia, but those imports have been disrupted by the war, they added.

The shutdown of two major oil refineries in recent months has diminished the state’s ability to make up for the lost gasoline with in-state production, they added. A longstanding absence of adequate pipeline infrastructure connected to other states, meanwhile, has prevented California from turning to domestic supply.

Gasoline inventory in the state averaged 9.55 million barrels over the four weeks ending on April 24, CEC data shows. That figure puts inventories near the lowest level on record dating back to 2005, according to a Reuters analysis. That total stock includes non-California gasoline, blending components and California’s gasoline blend.

“California has designed an energy island in terms of the products we actually use. We’re not connected to the rest of the U.S. as efficiently as many other states are,” Paasha Mahdavi, a professor of energy governance and political economy at the University of California, Santa Barbara, told ABC News.

As a result, Mahdavi added: “There’s a crunch hitting gas stations.”

Despite the supply squeeze, California is unlikely to suffer from long lines at gasoline stations or customers leaving with empty tanks, some analysts said.

Rather, the price of gasoline will continue to move up, reaching such heights that some buyers will turn to alternatives or simply go without fuel, Severin Borenstein, a professor of Business Administration and Public Policy at the University of California, Berkeley, told ABC News.

If public officials were to put a price cap on gasoline, then customers would likely flock to the pump and empty inventories, Borenstein added. As prices surge, however, customers will fall out of the market instead.

“We don’t have any gas lines because we don’t regulate the price of gas,” Borsenstein told ABC News. “As much as people hate high gas prices, they hate gas lines even more.”

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(NEW YORK) — The Department of Transportation said on Saturday the majority of airlines will be capping tickets prices for Spirit Airlines travelers who need to rebook their canceled flights.

Some carriers have even reduced fares on high volume routes where Spirit used to operate.

Spirit began winding down operations early Saturday morning after talks between the airline and the federal government over a $500 million rescue deal stalled.

Spirit said that travelers who booked their tickets with a credit or debit card will be automatically refunded.

United, Delta, JetBlue and Southwest said they are capping ticket prices specifically for Spirit customers who need to rebook cancelled flights.

To access these special prices, individuals will need to provide at least a Spirit flight confirmation number and proof of payment, the airlines said.

These fares will only be available for a short period:

JetBlue: Available for 72 hours
Southwest: Available for 72 hours; only in person at an airport ticket counter
Delta: Available for five days
United: Available for two weeks online 
American Airlines and Delta Air Lines are offering reduced fares on high-volume Spirit routes.

United Airlines said for the next two weeks, customers who were booked on Spirit can get one-way tickets on United flights from most cities where Spirit previously operated, including Atlanta, Chicago, Fort Lauderdale, Houston, Las Vegas, Miami, Newark, New Orleans and Orlando.

The airline said it has capped most of its fares at $199, though exceptions apply with longer flights not priced higher than $299.

Travelers will need to enter their Spirit confirmation number and verify they were scheduled to travel between May 2 through May 16 in order to be qualify for these special fares.

American Airlines said it has also launched a page on its website that displays rescue fares to and from a range of domestic and international destinations for Spirit customers needing to rebook travel.

The airline said it’s also reviewing adding additional capacity, including flying bigger planes and adding more flights on routes Spirit used to fly, to accommodate as many passengers as possible.

Allegiant Air has also committed to freezing fare prices across routes that overlap with Spirit. To support impacted travelers, Frontier Airlines is offering up to 50% off base fares across its network until May 10.

To help Spirit employees, the Department of Transportation said most major U.S. carriers are extending travel pass benefits and spare jump seats so employees can return to their homebases.

Airlines are also offering Spirit team members preferential employment interviews to ensure they jump the queue. American and United said they’re creating microsites for Spirit employees looking to continue a career in aviation, per the federal agency. 

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(WASHINGTON) — President Donald Trump said an announcement was expected Friday on Spirit Airlines, amid a report that the airline was preparing to cease operations after a $500 million rescue deal fell apart.

The Wall Street Journal first reported that the airline is preparing to shut down operations.

When asked if the administration had decided against bailing out Spirit Airlines, Trump told reporters on Friday, “I guess we’re looking at it. If we could do it, we do it, but only if it’s a good deal.”

“No institution’s been able to do it,” he continued. “I said ‘I’d like to save the jobs,’ but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”

ABC News has reached out to the White House for additional comment.

A spokesperson for Spirit Airlines declined to comment on ongoing discussions as it related to the WSJ report.

“Spirit is operating as usual,” the spokesperson said in a statement. 

The Florida-based carrier is currently operating with over 40 flights in the air, according to FlightRadar24 data. 

Other airlines have responded to the news saying they will be ready to help stranded passengers in the event that Spirit shuts down. 

American Airlines told ABC News it will offer fare caps on main cabin tickets for routes they share with Spirit. 

Similarly, United Airlines said they’re “preparing to support Spirit customers in the event of a shut down.”

“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier Airlines posted Friday on X.

ABC News previously reported that Spirit could run out of the cash it needs to keep operating within days, not weeks, according to sources familiar with the matter. 

Spirit filed for bankruptcy for the second time last August — having previously filed for Chapter 11 bankruptcy protection in November 2024 — to restructure financially and “reduce its cost structure,” with hopes of emerging from Chapter 11 by the spring or summer of 2026.

The soaring price of jet fuel amid the ongoing war in Iran has had widespread impact on airlines and travel expert Katy Nastro, of airfare monitoring site Going, previously told ABC News that Spirit could be out of time to try and turn things around.

“It’s never a good sign to file bankruptcy to begin with, but a second within six months, even worse,” Nastro said. “Spirit suggested that they were going to be able to come out of bankruptcy this time by the spring. We’re in the spring now, we have higher jet fuel prices — this is a recipe for disaster for them.”

 

What travelers need to know about Spirit Airlines shutting down

Bradley Akubuiro, a crisis expert and former Boeing spokesperson, told ABC News that losing a budget airline like Spirit will raise the floor on airfares.

“Frontier, Allegiant, and Breeze are still flying, but Spirit was the biggest, and in the markets it dominated — Fort Lauderdale, Orlando, a lot of the Caribbean — there isn’t another carrier ready to backfill at the same price tomorrow,” he explained. “The pain isn’t immediate. It’s structural. A fare that used to be $89 is $140 six months from now, and most consumers won’t connect the two.”

When airlines liquidate, they immediately cease operations without notice, which means that passengers will be stranded and employees will not show up to work. 

There is generally no airline assistance when it comes to helping stranded passengers after an airline shuts down operations. 

For any ticketed passengers scheduled to fly Spirit or already in the middle of their trip, below are some tips from travel experts on how to navigate the situation.

Don’t immediately cancel your flight, Nastro advised, adding that travelers who cancel forfeit their right to a refund. And make sure to keep all records and receipts.

If you booked with a credit card, you can dispute the charge with your credit card company and likely get the money back.  

There is less protection if you booked with a debit card, but you can still contact your company to see if you can get reimbursed. 

If you have travel insurance, she reminded customers to read the fine print as not all of them cover this type of scenario. 

Per the Department of Transportation, customers could consider filing a proof of claim in the bankruptcy proceeding to try and get a partial refund, but the claim will be considered along with all the other creditors that the airline owes money to and you may only get a small portion of your money back.

If you’re stranded, check options with other airlines that might be able to offer relief flights, fare caps or emergency fares, like they would do after a big weather event.

This is a developing story, check back for updates.

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(WASHINGTON) — President Donald Trump said an announcement was expected Friday on Spirit Airlines, amid a report that the airline was preparing to cease operations after a $500 million rescue deal fell apart.

The Wall Street Journal first reported that the airline is preparing to shut down operations.

When asked if the administration had decided against bailing out Spirit Airlines, Trump told reporters on Friday, “I guess we’re looking at it. If we could do it, we do it, but only if it’s a good deal.”

“No institution’s been able to do it,” he continued. “I said ‘I’d like to save the jobs,’ but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”

This is a developing story, check back for updates.

Copyright © 2026, ABC Audio. All rights reserved.

(NEW YORK) — The United States economy grew at a solid pace over the first three months of 2026, rebounding from sluggish performance at the end of last year, a government report on Thursday showed.

The economy grew at an annualized rate of 2% in the first quarter, marking an acceleration from 0.5% growth recorded in the previous quarter. The performance came in slightly below economists’ expectations.

The fresh data covers a period mostly before the outset of the Iran war on Feb. 28, which sent gasoline prices surging and prompted warnings of a possible recession.

The jump in economic output over the first quarter owes to a rise in government spending, exports and investment, the U.S. Commerce Department said.

Consumer spending slowed down from the previous quarter, however, providing a cautionary note for the nation’s outlook. Consumer spending accounts for about two-thirds of U.S. economic activity.

Households, meanwhile, are weathering a surge in prices as a result of an oil shock set off by the Iran war.

The Personal Consumption Expenditures Price Index, a measure of inflation preferred by the Federal Reserve, increased 3.5% in March, the report showed. That reading marked a jump from a 2.8% rate in the previous month.

The Middle East conflict prompted Iran’s effective closure of the Strait of Hormuz, a critical waterway that facilitates the transport of about one-fifth of the global supply of oil and natural gas.

The average price of a gallon of gas stands at $4.30 as of Thursday, hitting the highest level in four years.

The Federal Reserve held interest rates steady on Wednesday, in part due to the recent rise in costs. The benchmark rate stands at a level between 3.5% and 3.75%.

The solid economic performance at the outset of this year may allow the Fed to keep interest rates elevated for longer as it seeks to avert a prolonged rise in prices amid the Iran war.

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(WASHINGTON) — A Senate committee on Wednesday voted to advance Fed chair nominee Kevin Warsh, clearing a key hurdle in his path to replace Fed Chair Jerome Powell before his term ends next month. Warsh’s nomination will move to a confirmation vote on the floor of the upper chamber.

The Senate Banking Committee voted 13-11 to approve the nomination on a party-line vote, with Republicans supporting the nomination and Democrats opposing it.

The vote comes days after the Department of Justice moved to drop its criminal probe into Powell. Before that, Warsh had faced a bipartisan stonewall in the Senate Banking Committee over the probe.

Sen. Thom Tillis, R-N.C., who previously vowed to oppose Warsh’s nomination on account of the investigation, said he would flip his vote after the investigation was set aside. Tillis voted to approve the nomination on Wednesday.

The probe into Powell focuses on alleged false testimony to Congress about an office renovation. Powell, who was appointed by Trump in 2017, has rebuked the investigation as a politically motivated effort to influence interest-rate policy.

Powell’s term as Fed chair ends on May 15, but he said last month he would stay in the position until Warsh is confirmed.

Warsh, a former Fed official, is currently a fellow at a conservative think tank called the Hoover Institution, which is based at Stanford University.

At testimony before the Senate Banking Committee last week, Democrats sharply criticized Warsh, saying the independence of the Fed would be at risk if Warsh were to take policy cues from Trump.

In his opening remarks, Warsh voiced support for the independence of the Fed in its role setting interest rates. He used the term “monetary policy” to describe the central bank’s task of adjusting benchmark borrowing costs.

“Monetary policy independence is essential. Monetary policymakers must act in the nation’s interest,” Warsh said.

Still, Warsh defended the right of public officials, including presidents, to voice their views on interest-rate policy, saying such comments do not infringe on Fed independence.

“Central bankers must be strong enough to listen to a diversity of views from all corners,” Warsh said.

Sen. Elizabeth Warren, D-Mass., the top Democrat on the committee, responded directly to Warsh’s defense of a president’s right to criticize the Fed, saying the federal investigation of Powell amounts to a pressure campaign that extends beyond public criticism of Fed policies.

“You said it’s perfectly fine for elected officials to state their views on interest rates. But that’s not what Donald Trump is doing,” Warren said, addressing Warsh.

Republicans, including Sen. Tim Scott, R-S.C., the chairman of the Senate Banking Committee, praised Warsh, saying the Fed nominee would focus central bank policy on economic stewardship. During the tenure of President Joe Biden, Scott claimed, the Fed shifted some of its attention to the implications of issues like climate change.

“An independent Federal Reserve is essential to achieving its mission. That independence must be protected,” Scott said.

During his term as a Fed governor in the late 2000s and early 2010s, Warsh gained a reputation as an interest-rate “hawk,” meaning he generally preferred higher interest rates as a means of ensuring low and stable inflation.

In recent months, however, Warsh has voiced support for lower interest rates, rebuking the Fed’s concern about inflation risk posed by a flurry of new tariffs issued last year.

The Senate committee vote came hours before the Fed is set to announce its latest decision on the level of interest rates. The central bank is widely expected to hold interest rates steady.

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(NEW YORK) — The Federal Reserve on Wednesday will issue its latest announcement on interest rates as gasoline prices in the U.S. reach their highest level in four years. The move marks what may be the central bank’s final decision on borrowing costs under the leadership of Fed Chair Jerome Powell.

The policy announcement is set to arrive at an uneasy moment for the central bank. The Iran war set off a rapid acceleration of price increases, posing a challenge for policymakers bedeviled by elevated inflation and sluggish hiring.

Investors overwhelmingly expect the Fed to leave rates unchanged on Wednesday, according to the CME FedWatch Tool, a measure of market sentiment.

A standoff between the White House and Congress, meanwhile, has cast doubt over succession plans for Powell as his term comes to a close next month.

President Donald Trump’s nominee to lead the Fed, Kevin Warsh, has faced a bipartisan stonewall in the Senate Banking Committee over a federal criminal investigation into Powell.

The Department of Justice moved to drop the probe last week, paving the way for Warsh to advance in a committee vote. If his nomination advances, Warsh would face a confirmation vote on the Senate floor.

The investigation into Powell focuses on alleged false testimony to Congress about an office renovation. Powell, who was appointed by Trump in 2017, has rebuked the probe as a politically motivated effort to influence interest-rate policy.

Powell’s term as Fed chair ends on May 15, but he said last month he would stay in the position until Warsh is confirmed.

Even after his successor is confirmed, Powell could remain on the Fed’s 12-member policymaking board until 2028, retaining a role in the central bank’s interest-rate policy. Powell has not indicated whether he intends to remain on the board.

Elevated price increases have coincided with a slowdown of economic growth, threatening to intensify an economic double-whammy known as “stagflation,” which poses difficulty for the Fed.

If the Fed opts to lower borrowing costs, it could spur growth but risk higher inflation. On the other hand, the choice to raise interest rates may slow price increases but raises the likelihood of a cooldown in economic performance.

The Fed held interest rates steady last month at its first meeting since the U.S.-Israeli war with Iran drove up gasoline prices and risked a wider bout of inflation.

The central bank’s move marked the second consecutive time it has opted to maintain interest rates at current levels since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times.

Warsh, a former Fed official, is currently a fellow at a conservative think tank called the Hoover Institution, which is based at Stanford University.

During his term as a Fed governor in the late 2000s and early 2010s, Warsh gained a reputation as an interest-rate “hawk,” meaning he generally preferred higher interest rates as a means of ensuring low and stable inflation.

In recent months, however, Warsh has voiced support for lower interest rates, rebuking the Fed’s concern about inflation risk posed by a flurry of new tariffs issued last year.

Markets peg a roughly 80% chance of interest rates holding steady for the remainder of this year, according to the CME FedWatch Tool.

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(NEW YORK) — Gasoline prices in the United States hit their highest level in four years on Tuesday as negotiations over the Iran war appeared to show little signs of a resolution.

This is a developing story. Please check back for updates.

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