Today is
Wednesday June 03, 2026
NEW YORK (AP) — A hidden force is quietly pushing up costs for everything from your summer vacation to your weekly grocery bills: a weaker U.S. dollar.
The dollar has fallen about 10% against other major currencies since President Donald Trump returned to the White House, a pullback potentially playing a role in Americans’ concerns about affordability.
“It’s kind of a hidden tax,” says economist Thomas Savidge of the conservative-leaning American Institute for Economic Research. “What your dollar is going to be able to buy is going to shrink.”
A look at where the dollar stands and what it means for you:
Historic dollar decline
The U.S. Dollar Index, which measures the greenback against other major currencies, logged its steepest six-month drop in more than 50 years in the first half of 2025. Though the decline hasn’t deepened, the dollar index is still about 10% lower than the start of Trump’s term.
A strong dollar makes imports cheaper and can help keep inflation in check. A weak one can increase prices on foreign goods but boost American exports.
U.S. presidents have long voiced support for a strong dollar even as they pursued policies that, at times, pushed the currency lower. Trump has suggested a strong dollar puts the U.S. at a disadvantage and that a weak dollar helps American industry. And as with most things with Trump, he’s been blunter in his messaging.
“You make a hell of a lot more money with a weaker dollar,” he said last year, one of a number of public statements showing his preference for seeing the dollar decline.
Big multinationals benefit
Trump isn’t alone in seeing benefits of a weaker buck.
In recent months, corporate earnings calls have been peppered with talk of how a weaker dollar has helped companies from Philip Morris to Coca-Cola, with executives pulling out C-suite phrases like “favorable currency impact” to note how the dip brought tailwinds outside the U.S. that added to bottom lines.
“In many cases, we’ve got a weaker dollar, which is not unhelpful,” Elie Maalouf, the CEO of InterContinental Hotels, said on a February call as the company announced higher profits and revenues.
For big multinational companies that do business overseas, a weaker dollar can spur sales for products that suddenly become cheaper. But the vast majority of U.S. businesses are not operating beyond the border. For those catering to domestic customers, it’s a different story, particularly if they are reliant on importing goods.
Travis Madeira, a fourth-generation lobsterman who founded the lobster-shipping business LobsterBoys with his brother, makes about 80% of his sales to Americans, unlike some competitors who primarily export.
“The exporters are gonna have the advantage when it comes to the dollar weakening,” says Madeira, who is paying more to import bait and buy Canadian lobsters. “These guys are gonna have a little bit of a lever on us.”
Smaller companies hurt
Even among companies that do have a presence outside the U.S., the dollar’s fall can have an impact. While many big companies hedge currency to try and insulate themselves or push more sales overseas, smaller businesses are often more susceptible to the turbulence.
David Navazio, CEO of Pennsylvania-based Gentell, which makes bandages and other medical supplies, operates plants in Brazil, Paraguay, Canada, New Zealand and the United Kingdom. In each location, the dollar has fallen, increasing Gentell’s costs.
Gentell has had to raise some prices to reflect the currency fluctuation, which stacks on top of other challenges, including tariffs and war-related spikes to fuel costs.
“A year ago, none of these were concerns,” he says. “And it always hurts the consumer.”
Other currencies rise
For the American consumer, the reality of a declining dollar is most obvious during foreign travel or when making a purchase directly from an international seller.
Cross the border into Mexico, the top foreign destination of Americans, and your dollar is about 16% weaker versus the peso compared with early 2025. Declines of about 10% to 17% have been recorded elsewhere, including against the Swiss franc, South African rand, Danish krone, Swedish krona and the Euro.
As for goods imported to the U.S., there is an impact, but it’s harder to gauge. Many economists estimate that, in advanced countries like the U.S., only about 5% to 10% of a currency dip is passed on to consumers.
But they are an added stress when prices are already affected by other factors.
Take coffee, one of the grocery items that has seen the biggest price hike in the past year. Brazil is the biggest source of coffee for the U.S. and the dollar has fallen around 13% versus its real. Currency fluctuations can hit harder in developing economies and, while only a fraction of the change may feed into coffee’s ballooning price, every bit can pile up. Coffee prices are up nearly 19% in the U.S. in the past year, according to government data.
Expect more movement
Currency values are constantly moving and, while the dollar’s recent fall is notable, it has reached lower levels at points in the presidencies of each of Trump’s predecessors, back through the creation of the Dollar Index in 1973, when Richard Nixon was at the helm.
Kenneth Rogoff, a Harvard University economist and former chief economist at the International Monetary Fund, says while “a lot of policies that Trump is doing are something of a cancer for the dollar,” he believes that it was destined to fall no matter who was in charge.
“The dollar had been on a 15-year bull run,” he said. “I would argue the dollar is still wildly overvalued, and over the next maybe five or six years, it might fall 15%.”
What does that mean for American consumers? Rogoff says commodity prices are likely to rise, particularly with the impact of the Iran war on fuel prices.
“They’re just going to go up,” he says, “no matter what the dollar’s at.”
(NEW YORK) -- The Trump family's flagship cryptocurrency venture filed a defamation suit on Monday against Chinese crypto mogul Justin Sun, escalating an ongoing legal and social media feud with one of the company's most notable investors.
Sun sued the Trump-backed firm World Liberty Financial last month, accusing its officers of improperly freezing his investment in the firm's digital tokens.
World Liberty Financial denied those claims publicly and on Monday accused Sun, in a lawsuit filed in Florida state court, of embarking on a "scorched-earth pressure campaign against World Liberty."
"Sun weaponized his money and his influence within the industry, hiring influencers and deploying fake social-media 'bot' accounts to amplify his lies," the suit asserts. "His actions were coordinated, deliberate, and aimed at burning World Liberty to the ground."
World Liberty Financial says in its suit that it froze Sun's assets "to protect" its community when it learned of alleged "misconduct" perpetrated by Sun, "including suspected short selling of $WLFI token ... and straw purchases of $WLFI tokens on behalf of undisclosed third parties," referring to World Liberty Financial's flagship digital asset.
Sun called the lawsuit "nothing more than a meritless PR stunt" on social media and said he'll "look forward to defeating the case in court."
Donald Trump Jr., a World Liberty Financial co-founder, on Monday re-posted a thread from the World Liberty Financial account on X laying out its claims in the lawsuit and urging his followers to "Read this entire thread for the truth!!!!"
The dueling lawsuits mark the collapse of what was once a lively and mutually fruitful relationship, after Sun pumped more than $45 million into World Liberty Financial and many more millions into President Trump's meme coin, called $TRUMP.
Earlier this year, Sun agreed to pay $10 million to resolve a civil fraud case brought by the Biden-era Securities and Exchange Commission -- a resolution critics framed as a favorable outcome for the Chinese mogul.
Copyright © 2026, ABC Audio. All rights reserved.
(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.
Copyright © 2026, ABC Audio. All rights reserved.
(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.
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.
Copyright © 2026, ABC Audio. All rights reserved.
(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.
Copyright © 2026, ABC Audio. All rights reserved.
NEW YORK (AP) — U.S. stocks pulled back from their record heights on a shaky Wall Street Thursday following mixed profit reports from Tesla and other big companies. Oil prices, meanwhile, jumped on worries about what will happen next in the war with Iran.
The S&P 500 fell 0.4% and halted a weekslong rally that had erased all its losses because of the war and then carried it to all-time highs. The Dow Jones Industrial Average dipped 179 points, or 0.4%, while the Nasdaq composite dropped 0.9% from its own record.
Tesla helped drag the market lower after sinking 3.6% even though it reported better results for the latest quarter than analysts expected. Investors focused instead on a big jump in Tesla’s forecast for spending this year, as it builds factories to make robots and other products.
“You should expect to see a very significant increase in capital expenditures,” Elon Musk told investors late Wednesday, “but I think well justified for a substantially increased future revenue stream.”
ServiceNow dropped even more, 17.7%, even though its results for the latest quarter matched analysts’ expectations. The company has been under pressure, along with much of the broad software industry, because of worries that rivals powered by artificial-intelligence technology could undercut its business.
In the oil market, prices leaped as uncertainty built about what will happen with the Strait of Hormuz. A ceasefire is still in place between the United States and Iran, but oil tankers in the Persian Gulf aren’t able to get through the narrow waterway off Iran’s coast and deliver crude to customers.
The U.S. military on Thursday seized another tanker associated with the smuggling of Iranian oil, a day after Iran’s paramilitary Revolutionary Guards took control of two vessels in the strait. President Donald Trump also said Thursday he ordered the U.S. military to “shoot and kill” Iranian boats that deploy mines to gum up traffic in the strait.
The price for a barrel of Brent crude to be delivered in June rose 3.1% to settle at $105.07 and at one point topped $107. That peak coincided with a sudden drawdown for stocks, and the S&P 500 fell as much as 1.3% before it almost as instantly erased half the loss.
The price for a barrel of Brent to be delivered in July, which is the more popular contract for traders, settled at $99.35 after getting as high as $101.
More expensive oil has hurt airlines in particular because of the industry’s big fuel bills, and stocks diverged in the industry following the latest profit reports.
American Airlines Group rose 2.4% after reporting better profit and revenue for the latest quarter than analysts expected. American said demand was strong for flights, and it saw the nine best weeks for revenue intake in its 100-year history.
Southwest Airlines lost 4.1% after reporting weaker quarterly results than analysts expected. It said it would not give an updated forecast for profit this year because of “the ongoing macroeconomic uncertainty.”
Also on the losing end of Wall Street was IBM, which sank 8.3% despite reporting better profit and revenue for the latest quarter than expected. Investors focused on potentially discouraging numbers underneath the surface, including decelerating growth in trends for its software business.
Paramount Skydance fell 4.5% after Warner Bros. Discovery shareholders approved selling the business to Paramount. Warner Bros. Discovery sank 1.6%.
Texas Instruments helped limit Wall Street’s losses after breezing past analysts’ expectations for profit in the latest quarter. CEO Haviv Ilan said the semiconductor company is benefiting from growth led by industrial and data center customers, and its 19.4% leap was the strongest force pushing upward on the S&P 500.
All told, the S&P 500 fell 29.50 points to 7,108.40. The Dow Jones Industrial Average dipped 179.71 to 49,310.32, and the Nasdaq composite sank 219.06 to 24,438.50.
In stock markets abroad, indexes fell across much of Europe and Asia. Hong Kong’s Hang Seng fell 0.9%, and Japan’s Nikkei 225 sank 0.7% for two of the bigger losses.
South Korea’s Kospi climbed 0.9% after the government reported better-than-expected economic growth for the start of the year, boosted by strong exports, particularly of computer chips used in the AI boom. Semiconductor supplier SK Hynix said its revenue for the latest quarter jumped more than analysts expected largely because of AI-related demand.
In the bond market, the yield on the 10-year Treasury erased an early dip and rose to 4.32% from 4.30% late Wednesday as oil prices accelerated.
A report in the morning said slightly more U.S. workers applied for unemployment benefits last week, but the number is still at a historically healthy level. A separate, preliminary report on U.S. business output from S&P Global also suggested growth is improving a bit from its near-stagnation seen in March.