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July 31, 2025

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The US Federal Reserve held its fifth meeting of 2025 from Tuesday (July 29) to Wednesday (July 30) against a backdrop of trade tensions, spurred on by the Trump administration’s tariffs.

The central bank met analysts’ expectations by holding its benchmark rate in the 4.25 to 4.5 percent range.

Chair Jerome Powell stated that although there were differences of opinion among the Federal Open Markets Committee members, they were clear on why they made their decisions, noting that inflation was tracking higher, but the job market remained stable.

“The labor market looks solid, inflation is above target, and even if you look through the tariff effects, we think it’s still a bit above target, and that’s why our stance is where it is,” Powell said.

The Fed chair also noted a slowing in gross domestic product, which he pointed out was up 2.5 percent in 2024, but initial data from 2025 points to a slowing in growth to 1.1 percent.

The vote to hold the rate was 9-2, with Governors Michelle Bowman and Christopher Waller being the dissenters who advocated for cuts. It marks the first time since December 1993 that two board members have broken with consensus.

Both Bowman and Waller were appointed by Donald Trump during his first term in office, with Waller being one of the front-runners to replace Powell when his term as board chairman ends in May 2026.

Trump has been critical of Powell in recent months, with the latest statements coming just minutes before the Fed meeting. The president has said Powell has not moved quickly enough to make rate cuts, despite data suggesting inflation has been starting to increase.

North of the Border, the Bank of Canada (BoC) also held its June meeting on Wednesday.

It also met expectations by holding its benchmark rate at 2.75 percent, with Bank Governor Tiff Macklem citing resilience in the economy despite trade disputes brought on by the Trump administration in the United States.

The BoC last changed its rate with a 0.25 percent cut in March to the current 2.75 percent from 3 percent.

Gold was down in the day’s trading, losing 1.6 percent to US$3,272.75 per ounce. Silver declined more sharply, losing 3.37 percent to US$36.93 per ounce at 3:30 p.m. EST.

The S&P 500 (INDEXSP:INX) was down, recording a 0.4 percent decline to reach 6,344.17. The Nasdaq-100 (INDEXNASDAQ:NDX) slipped 0.17 percent to come in at 23,265 , and the Dow Jones Industrial Average (INDEXDJX:DJI) lost 0.74 percent, coming to 44,297.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Two U.S. judges in separate federal courts scrapped their rulings last week after lawyers alerted them to filings that contained inaccurate case details or seemingly ‘hallucinated’ quotes that misquoted cited cases — the latest in a string of errors that suggest the growing use of artificial intelligence in legal research and submissions.

In New Jersey, U.S. District Judge Julien Neals withdrew his denial of a motion to dismiss a securities fraud case after lawyers revealed the decision relied on filings with ‘pervasive and material inaccuracies.’

The filing pointed to ‘numerous instances’ of made-up quotes submitted by attorneys, as well as three separate instances when the outcome of lawsuits appeared to have been mistaken, prompting Neals to withdraw his decision.

In Mississippi, U.S. District Judge Henry Wingate replaced his original July 20 temporary restraining order that paused enforcement of a state law blocking diversity, equity and inclusion programs in public schools after lawyers notified the judge of serious errors submitted by the attorney. 

They informed the court that the decision ‘relie[d] upon the purported declaration testimony of four individuals whose declarations do not appear in the record for this case.’ 

Wingate subsequently issued a new ruling, though lawyers for the state have asked his original order to be placed back on the docket. 

‘All parties are entitled to a complete and accurate record of all papers filed and orders entered in this action, for the benefit of the Fifth Circuit’s appellate review,’ the state attorney general said in a filing. 

A person familiar with Wingate’s temporary order in Mississippi confirmed to Fox News Digital that the erroneous filing submitted to the court had used AI, adding that they had ‘never seen anything like this’ in court before.

Neither the judges’ office nor the lawyers in question immediately responded to Fox News Digital’s requests for comment on the retracted New Jersey order, first reported by Reuters. It was not immediately clear if AI was the reason for that erroneous court submission in that case.

However, the errors in both cases — which were quickly flagged by attorneys, and prompted the judges to take action to revise or redact their orders — come as the use of generative AI continues to skyrocket in almost every profession, especially among younger workers. 

In at least one of the cases, the errors bear similarities to AI-style inaccuracies, which include the use of ‘ghost’ or ‘hallucinated’ quotes being used in filings, citing incorrect or even nonexistent cases.

For bar-admitted attorneys, these erroneous court submissions are not taken lightly. Lawyers are responsible for the veracity of all information included in court filings, including if it includes AI-generated materials, according to guidance from the American Bar Association.

In May, a federal judge in California slapped law firms with $31,000 in sanctions for using AI in court filings, saying at the time that ‘no reasonably competent attorney should out-source research and writing to this technology — particularly without any attempt to verify the accuracy of that material.’

Last week, a federal judge in Alabama sanctioned three attorneys for submitting erroneous court filings that were later revealed to have been generated by ChatGPT.

Among other things, the filings in question included the use of the AI-generated quote ‘hallucinations,’ U.S. District Judge Anna Manasco said in her order, which also referred the lawyers in question to the state bar for further disciplinary proceedings.

‘Fabricating legal authority is serious misconduct that demands a serious sanction,’ she said in the filing.

New data from the Pew Research Center underscores the rise of AI tools among younger users. 

According to a June survey, roughly 34% of U.S. adults say they have used ChatGPT, the artificial intelligence chatbot — roughly double the percentage of users who said the same at the same point two years ago, in 2023. 

The share of employed adults who use ChatGPT for work has spiked by a whopping 20 percentage points since June 2023; and among adults under 30, adoption is even more widespread, with a 58% majority saying they have used the chatbot.

This post appeared first on FOX NEWS

President Donald Trump on Wednesday signed an executive order ending the de minimis trade loophole for low-value packages shipped from all countries.

The order, which takes effect Aug. 29, will subject any shipments of imported goods into the U.S. worth $800 or less to duties, the White House said.

Any goods shipped through the international postal network will be subject to tariff rates based on the value of the package and its country of origin.

The move comes after Trump in May shuttered the de minimis loophole for goods from China and Hong Kong. A federal trade court on Monday declined to block Trump’s de minimis ban, even after an auto parts retailer argued the action was unlawful and threatened its business.

Use of the de minimis provision has exploded in recent years as online shopping has become more prevalent. Ultra-cheap online retailers such as Temu and Shein have used the loophole to ship packages to American shoppers directly from China duty-free.

Shares of PDD Holdings, the parent company of Temu, dipped lower following the announcement.

The Trump administration has sought to close the loophole, calling it a “big scam” that hurts U.S. businesses. Officials have said de minimis facilitates shipments of fentanyl and other illicit substances, saying the packages are less likely to be inspected by customs agents.

The volume of de minimis shipments has skyrocketed to 309 million units so far this fiscal year, up from 115 million for all of last year, the White House said.

This post appeared first on NBC NEWS