Stories that are getting the most attention from our readers this week.
Warren Buffett’s Berkshire Hathaway now has over $300 billion in cash reserves, a war chest that has analysts speculating about his next blockbuster investment. Shareholders flock to Omaha this week for Berkshire’s annual meeting, marking Buffett’s 60th anniversary at the helm. Historically, the “Oracle of Omaha” has pounced on undervalued opportunities during market turmoil, whether it was picking up Japanese trading companies or Apple shares at opportune moments. But with ongoing tariff threats, inflation jitters, and a rocky stock market, some wonder if Berkshire might be waiting for even deeper discounts or scouting new sectors altogether. As usual, the famously tight-lipped Buffett offers no direct hints—fueling still more anticipation for a reveal that could shift entire sectors.
What this means for you: • the political spat on tariffs and the slump in consumer sentiment • highlight growing economic jitters in the US. Many worry that continuously elevated prices could dampen discretionary spending, fueling a cycle of slower growth. Companies that rely on consumer demand, from retail to hospitality, are watching closely for signs of a deeper downturn.
Microsoft smashed Wall Street expectations this quarter with $70.1 billion in revenue and $25.8 billion in net profit—both double-digit increases. Cloud services and AI tools drove the bulk of that surge, as enterprise clients turned to Microsoft Azure for data processing, machine learning, and other tech solutions. CEO Satya Nadella highlighted “record adoption” in both new and existing AI-driven products, from Office apps to development platforms. Investors welcomed Microsoft’s forecast of continued double-digit revenue growth, reinforcing hopes that enterprise spending might remain robust even amid broader economic concerns. Microsoft’s blockbuster numbers also gave a lift to other major tech stocks, easing recession fears and validating bets on AI as a long-term profit engine.
Widespread tariff hikes imposed by President Trump have begun to ripple through consumer markets, pushing up the price of everything from clothes to electronics. A recent analysis shows over 1,000 Amazon items saw an average 30 percent price jump. Car manufacturers like Ford have quietly raised sticker prices, while e-retailers such as Temu or Shein warn customers about looming cost increases. With these tariffs hitting a broad range of imports, the added costs are being passed on to end consumers, fueling inflationary pressure just when prices had started to stabilize. Companies say they’re forced to offset higher import fees, while the White House calls labeling the charges “political theater.” Experts note many everyday goods in the US are sourced from China, so consumers may have limited alternatives. The result is an unwelcome return to rising household expenses.
Bitcoin jumped almost nine percent overnight, cresting $87,000, while gold set a record $3,430 an ounce and the U.S. Dollar Index hit a three-year low after fresh presidential attacks on Fed Chair Jerome Powell. Analysts say tariff turmoil plus political pressure on the Fed is driving investors toward scarce assets like crypto and bullion.
The IRS is conducting fewer audits than ever before, with rates falling to a record low of 0.36% in 2023. This decline is attributed to significant workforce cuts, reducing the agency's capacity to conduct thorough audits. The IRS has collected only $4.5 billion from 2019 personal audits, a sharp decrease from previous years. Further cuts are planned, potentially exacerbating the issue and leading to billions in lost tax revenue.
The Federal Reserve signaled a possible increase to interest rates in an effort to address persistent inflation concerns. Officials released a statement emphasizing the importance of stabilizing consumer prices, citing wage growth and continued consumer spending as factors that could lead to further tightening. Financial analysts say this move suggests the Fed wants to balance economic expansion with caution over inflation. If approved, a rate hike would likely make borrowing more expensive, affecting mortgages, auto loans, and credit cards. Consumer confidence, however, has stayed relatively stable so far. Observers note this stance aligns with global central banks also aiming to cool down rising prices. Still, it remains unclear whether the Fed will enact more changes this year.
Amid fears of price hikes due to new tariffs on Chinese goods, Apple stores across the US are experiencing a surge in panic buying. Customers are rushing to purchase iPhones, anticipating that Apple may raise prices to offset increased manufacturing costs. The tariffs could raise the cost of producing an iPhone from $580 to $850. While Apple has not yet increased prices, the company is exploring options to mitigate the impact, including sourcing more products from countries like India.
Major retailers, including giants like Target and Walmart, have been flooding their warehouses with inventory in case import disruptions from new tariffs cripple supply lines. This strategy aims to prevent the dreaded sight of empty shelves—an outcome that can erode consumer confidence and pinch company margins. But it’s a tightrope: If consumer demand softens more than expected, firms might be stuck discounting surplus products, risking profitability. Meanwhile, manufacturers and shipping firms watch for a prolonged trade standoff that could further upend delivery schedules and logistics budgets. In a twist, too much stock or none at all can each prove equally damaging.
The U.S. House passed a bill today banning the Federal Reserve from issuing a government-backed digital dollar. Supporters say it protects financial privacy, while critics argue it could hold the U.S. back in digital innovation.
