OECD: growth likely to slow to 1.6% in 2025

U.S. economic growth will slow to 1.6% this year from 2.8% last year as President Donald Trump’s erratic trade wars disrupt global commerce, drive up costs and leave businesses and consumers paralyzed by uncertainty.

The Organization for Economic Cooperation and Development forecast Tuesday that the U.S. economy — the world’s largest — will slow further to just 1.5% in 2026. Trump’s policies have raised average U.S. tariff rates from around 2.5% when he returned to the White House to 15.4%, highest since 1938, according to the OECD.

Tariffs raise costs for consumers and American manufacturers that rely on imported raw materials and components. World economic growth will slow to just 2.9% this year and stay there in 2026, according to the OECD’s forecast. It marks a substantial deceleration from growth of 3.3% global growth last year and 3.4% in 2023.

Meta turns to nuclear power for AI needs

Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook’s parent company.

The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant.

The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed.

Constellation’s Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027.

The agreement deal takes effect in June of 2027, when the state’s taxpayer funded zero-emission credit program expires.

U.S. Job openings, layoffs rose in April

U.S. job openings rose unexpectedly in April, showing that the labor market remains resilient in the face of uncertainty arising from President Donald Trump’s trade wars.

The Labor Department reported Tuesday that employers posted 7.4 million job vacancies in April, up from 7.2 million in March. Economists had expected openings to drift down to 7.1 million.

But the number of Americans quitting their jobs— a sign of confidence in their prospects — fell, and layoffs ticked higher. And in another sign the job market has cooled from the hiring boom of 2021-2023, the Labor Department reported one job every unemployed person. As recently as December 2022, there were two vacancies for every jobless American.

Microsoft cuts hundreds more jobs

Microsoft Corp. cut hundreds more jobs just weeks after its largest layoff in years, underscoring the tech industry’s efforts to trim costs even as it plows billions of dollars into artificial intelligence.

More than 300 employees were told their positions had been eliminated on Monday, according to a Washington state notice reviewed by Bloomberg.

A Microsoft spokesperson said the latest headcount reduction is in addition to the 6,000 job cuts announced last month. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said.

Microsoft’s previous layoffs fell hardest on software engineers.

Compiled from Associated Press and Bloomberg reports.