Fed chair Kevin Warsh said if inf remains elevated, interest rates may be part of the response.

President Trump said US forces intercepted an Iran-launched ballistic missile attack on Jordan overnight and that Washington will respond forcefully. In a Wednesday Fox News interview he said, we’re going to hit them hard…they will be dealt a heavy blow, and that US forces had only minutes to respond before the missiles struck. Trump said he viewed footage of the intercepts showing personnel reporting missile coordinates in real time. He said US and Saudi strikes the same night targeted Iran-backed Iraqi Shia militias after coordination with the Iraqi government. Trump called those militias a scourge on the world and said the US is considering further warnings to Iran’s proxy networks.

Microsoft CEO Satya Nadella said clients must be able to freely switch between closed‑source and open‑source AI models. On a Wednesday analyst call he said the number of Microsoft customers building with multiple models has quadrupled since the start of the year. Nadella urged decoupling system frameworks from models so any given model is replaceable at any time and customers can deploy frontier models or use multiple models in production. Microsoft has investments in OpenAI and Anthropic and last week joined Nvidia and Palantir in signing a public letter backing open models.