Federal Reserve's Barkin said artificial intelligence enables firms to attempt headcount reductions, but strong profits have kept pressure for layoffs limited.

Markets are no longer fully pricing Fed rate hikes this year.

WSJ reported, citing people familiar with talks, that Mexico is pressing the US to lower tariffs on North American autos as part of discussions to revise the US‑Mexico‑Canada Agreement. The demand responds to the Trump administration’s prior push for more US‑made auto content; the administration currently applies a 25% tariff on the portion of a vehicle’s value attributable to parts not made in the US for autos from Canada and Mexico. Mexico’s recent proposal would broaden the range of tariff‑exempt parts and cut the peak North American auto tariff from 25% to a lower rate, possibly 5%–10%. Under the proposal the US would levy duties only on the value of parts produced outside North America, effectively exempting parts made in Mexico and Canada.