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DUBAI, United Arab Emirates (AP) — The U.S. military said Saturday it had struck multiple targets in Iran at President Donald Trump’s direction, continuing a string of attacks that have shaken the war’s uneasy ceasefire.

U.S. Central Command, in a post to social media, said that U.S. military aircraft targeted Iranian military “surveillance infrastructure, communication systems, air defense sites, drone storage facilities, and minelayer capabilities” following an attack on a merchant vessel early on Saturday morning.

The ongoing strikes in the Persian Gulf show the danger of the Iran war again spinning out of control, even after Iran and the U.S. reached an interim deal to try and agree on a final accord to end the conflict.

The incident follows a similar back and forth that occurred just days prior when an Iranian drone struck a merchant vessel off the coast of Oman on Thursday and the U.S. military retaliated with strikes the next day.

U.S. Central Command said that in this latest attack Iranian forces attacked the oil tanker Kiku with a one-way drone. The tanker was laden with more than two million barrels of crude oil and sailing through the Strait of Hormuz.

According to ship tracking websites, the Kiku left a Qatari oil field in the middle of the Persian Gulf earlier in the week and was bound for a port in the United Arab Emirates that sits on the Gulf of Aman, just on the other side of the Strait of Hormuz.

It appeared to be attempting to use a route that was established near the coast of Oman that is serving as an alternative to the route sanctioned by Iran that runs through its own waters.

A multinational maritime body overseen by the U.S. Navy said Saturday that it would expand the Omani route to allow for both inbound and outbound traffic, likely setting up a new flashpoint with Tehran, which sees the strait as a key source of leverage in ongoing talks with the U.S.

The U.S. military said that “Iran had a chance to honor the ceasefire agreement” but “elected not to” when its forces attacked the Kiku.

Iran state TV reported explosions in an area just north of the Strait of Hormuz.

Bahrain has been one of the strongest critics of Iran and is home to the U.S. Navy’s 5th Fleet. It just hosted U.S. Secretary of State Marco Rubio for a meeting of the Gulf Cooperation Council’s foreign ministers, which ended with a call for an end to Iran’s attacks and for the strait to be completely open.

A statement from Bahrain’s Foreign Ministry said a “number of Iranian drones” targeted the country. It called the attack “a flagrant threat to the security of citizens and residents.” There were no immediate reports of damage.

Iran’s paramilitary Revolutionary Guard earlier on Saturday issued a statement carried by the state-run IRNA news agency saying it had targeted several locations “of the U.S. terrorist army in the region.” It did not name what areas were targeted.

The U.S. military’s Central Command said the military struck Iranian missile and drone locations and coastal radar sites in the overnight strikes.

U.S. Vice President JD Vance, who has led the negotiations with Iran, said on social media Friday night that Iran should “pick up the phone” if there are disagreements about the ceasefire agreement, “but violence will be met with violence.”

The U.S. and Iran are negotiating terms of the deal including issues such as getting ships through the strait that’s vital to global supplies of oil and natural gas and addressing the future of Iran’s nuclear program and stockpile of highly enriched uranium.

Under the interim deal, the two sides have 60 days to work out the details. Ending the fighting in Lebanon between Israel and the Iranian-backed Hezbollah militant group is a key part of the deal.

The British military’s United Kingdom Maritime Trade Operations center said that a tanker was attacked Saturday in the strait, with the crew safe and no environmental damage reported. No one immediately claimed the strike, but suspicion fell on Iran.

Just after that report, the Joint Maritime Information Center, overseen by the U.S. Navy, said the route near Oman’s shore is expanding to allow for inbound and outbound traffic.

Iran has insisted that ships must obey its orders and warned it will start charging fees for transit through the strait. However, ships have been increasingly trying to leave the Gulf in recent days.

Ebrahim Azizi, who heads the Iranian parliament’s national security commission, wrote Friday that “the Strait of Hormuz is governed by Iran, so: Respect the rules.”

The U.S. and Gulf Arab states have rejected Iran’s demands. The strait is considered as an international waterway, despite being the territorial waters of Iran and Oman.

The Joint Maritime Information Center warned that the threat to ships was “substantial,” adding that “mariners are advised of the existence of mines and should expect a naval presence as clearance operations continue.”

The International Maritime Organization on Friday halted a new effort to evacuate ships said it won’t resume until there are guarantees that the other ships won’t be attacked. It said about 115 ships have been able to move out of the strait in recent days.

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Toropin reported from Washington, Associated Press writer Ali Swenson in New York contributed to this report.

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June 27 (Reuters) – The U.S. National Highway Traffic Safety Administration has closed a preliminary evaluation of 441,002 Honda vehicles after the company issued a recall of some Odyssey models, it said on Saturday.

Here are some details:

• The regulator opened a probe into 441,000 units of the 2018-2022 Honda Odyssey minivan in October last year after complaints that side airbags deployed unexpectedly while the vehicle was in motion, including incidents involving potholes.

• The probe has been closed after Honda issued a recall in April to address concerns about inadvertent side airbag deployment.

• The company said in its recall filing to the NHTSA that as of April 2, it has had 130 warranty claims, 25 reports of an injury, and no reports of death related to this issue from January 24, 2017 to April 2, 2026.

• The recall issued by the company covered certain 2018-2022 Honda Odyssey models. Customers were notified of the move in late May this year.

(Reporting by Gursimran Kaur in Bengaluru; Editing by Jan Harvey)

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June 27 (Reuters) – U.S. safety regulators said on Saturday they had closed their probe into Tesla vehicles over power steering loss, in view of a company recall which was carried out last year.

The National Highway Traffic Safety Administration (NHTSA) said the investigation, which had the status of an engineering analysis, covered about 376,241 Model 3 and Model Y vehicles from the 2023 model year.

NHTSA opened a preliminary evaluation in July 2023 into loss of steering control reports in Tesla Model 3 and Y vehicles after some owners reported an inability to turn the steering wheel or an increase in required effort.

In early 2024, the probe was upgraded to an engineering analysis to further investigate the alleged defect.

Tesla recalled 376,000 of its vehicles in the U.S. in early 2025, due to a failure of the power steering assist feature that could make the vehicles harder to steer, particularly at low speeds, raising the risk of a crash.

However, it said the recall was not in response to NHTSA’s investigation, which remained open at the time.

The recall said that Tesla had released an over-the-air software update designed to prevent overvoltage breakdown and overstress of motor drive components on the printed circuit board, which had caused an increase in steering effort.

In view of Tesla’s recall, the NHTSA’s Office of Defects Investigation said it was closing its engineering analysis.   

(Reporting by Disha Mishra in Bengaluru; Editing by Alexander Smith)

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Older buildings, substandard construction and geography left many neighborhoods in Venezuela vulnerable to strong earthquakes like the ones that struck the country this week.

Engineers and other experts said the back-to-back earthquakes on Wednesday were among the most intense to hit the country in more than a century, leveling buildings and leaving more than 900 dead with the number expected to rise. Videos and satellite imagery from the disaster zone reviewed by The Associated Press reveal scores of multistory buildings had collapsed.

Microsoft’s AI for Good Lab analyzed satellite imagery of Catia La Mar in La Guaira state, one of the hardest hit cities along the Caribbean coast. Using AI-based damage assessment models, Microsoft determined that about a third of the city’s nearly 30,000 structures were damaged.

Among the factors that left so many structures at risk: Some housing complexes in northern Venezuela were constructed quickly during recent oil booms, and builders may not have adhered to best practices that mitigate the risks of serious seismic activity, according to experts.

Engineers said that older housing erected in the 1950s and 1960s — before modern earthquake standards were adopted — may not have been retrofitted to survive such violent shaking. And many buildings were constructed on geography and soft soils that compound the danger of the earthquakes, the experts said.

David Cocke, a structural engineer in California and former president of the Earthquake Engineering Research Institute, said that a combination of soft soils, tall towers and older concrete structures contributed to the widespread damage, particularly when buildings pancaked, or collapsed floor-by-floor.

“They just don’t have the more modern reinforcing steel connections that we put in those kinds of buildings today,” said Cocke.

Since the 1970s, engineers have known that concrete buildings are particularly susceptible to earthquakes and seek to reinforce new construction with steel. While many rich nations have forced property owners to retrofit or tear down dangerous buildings, many poorer or middle income countries have lagged in enforcing upgrades as they battled more immediate woes.

“Some of the more advanced countries like Japan and New Zealand and the U.S. have made those changes, but some of the other countries have not,” Cocke said. “It’s a very typical kind of construction all over the world.”

Other experts noted that a number of buildings that collapsed also had non-structural walls comprised of heavy bricks, or they had “soft stories” in which their ground floors consisted of garages or similar open spaces. Such construction increases the risk of pancaking, they said.

“Soft stories are a huge problem everywhere in the world,” said Eduardo Miranda, a professor of civil and environmental engineering at Stanford University. “And in Venezuela, they are particularly prevalent, and if you combine softer soils with a soft story, buildings can collapse.”

Marcos Ferreira, a geophysicist and researcher at the Geological Survey of Brazil, said the destruction in Venezuela was compounded by the back-to-back quakes, known as a doublet. A similar incident took place in Turkey and Syria in 2023, killing almost 60,000 people.

“It is as if I am screaming and then someone starts screaming, too,” Ferreira said. “That amplifies the vibration and adds to the potential hazard.”

Venezuelan government officials took steps following a deadly 1967 quake to update building codes. But it is unclear how many buildings were retrofitted to comply with those rules.

In late 1999, former President Hugo Chávez’s first year in office, floods and landslides destroyed housing, including in coastal northern Venezuela. The government went on a building spree to replaced the demolished structures and to house so many displaced people, said Juan Carlos Vielma, a Venezuelan civil engineer who is head of academic affairs of the civil engineering school at Pontifical Catholic University of Valparaíso, Chile.

Some of the newer buildings appear to also have collapsed.

“Something that leaves me perplexed is the fact that, among the collapsed buildings, more than one was recently designed and built in accordance with current standards,” Vielma said. “We need to embark on a process not only of reconstruction, but also of reviewing the applicable standards, since something might have gone wrong within our engineering processes, too.”

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AP writer Mauricio Savarese in Sao Paulo contributed to this report.

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PARIS/CANNES, France, June 27 (Reuters) – Shuttling across the French and Italian Riviera, Orient Express’s first giant yacht aims to attract a new class of billionaire.

Orient Express, now a joint venture between French hotelier Accor and Louis Vuitton owner LVMH, set out to revive the 19th century travel brand. Its recently launched yacht is the first of two that will target the ultra-rich, adding to a portfolio of luxury hotels and a yet-to-launch historic art deco train. 

Accor, the operational leader of Orient Express, expects a new pool of billionaires produced by the AI boom will help the venture accelerate its push into luxury experiences, Accor’s Chief Executive Sebastien Bazin told Reuters. 

“When you are getting rich, very rich, money hasn’t got the same meaning,” Bazin said. “The only thing that has a meaning is recognition. Have you become someone?”  

Spending on high-end experiences is set to grow by 9-11% this year, far outpacing the 1-4% growth forecast for personal luxury goods, a Bain study published on Thursday showed.

The trend is boosted by a tech boom in the United States and elsewhere, leading to a larger number of so-called ultra-high net worth individuals using private jets, yachts and increasingly flocking to mega-events like Formula One racing. 

“When people are very rich and they have seven homes, and 12 cars, and 17 watches… they still have a bucket list of things they promised themselves to do before dying. It’s not to have an 18th watch,” Bazin said in an interview with Reuters this week.

Bazin confirmed Accor and luxury giant LVMH have reciprocal options to buy each other out in the coming years, providing the clearest insight yet into a partnership aimed at capturing the booming market for experiences as the luxury goods industry grapples with weak growth for products like handbags, fashions and watches. 

Neither LVMH nor Accor have so far disclosed the unit’s operating profit or enterprise value. Orient Express’s high-end assets are estimated to be worth about 1 billion euros ($1.07 billion).

GUERLAIN BEAUTY SALON, COGNAC IN THE PENTHOUSE 

Should either side decide to exercise the buyout option, an acquisition by LVMH appears more likely. 

Accor is under pressure from shareholders to ramp up returns as its traditional business with hotel chains like Ibis and Novotel has been flat for years.

For LVMH, a sprawling luxury behemoth with over 10 times Accor’s sales and a huge war chest for acquisitions, the venture could become a key pillar as consumer trends shift.

Orient Express’s first giant yacht has so far been banking on mega-events like the Cannes film festival and Formula One race in Monaco as a playing field for its clients to signal social status. 

“If you’ve been to a Monaco Formula One, if you want to go around, you need badges everywhere. Certain people would have certain badges,” said Estelle Dinh, a professor at Switzerland-based hospitality school Gilon and industry advisor. 

For a four-day cruise, suites on deck start at around €25,000. 

The vessel heavily features LVMH brands, from a Guerlain beauty salon to bottles of Hennessy cognac prominently displayed in its priciest penthouse suites.

(Reporting by Tassilo Hummel; Editing by Susan Fenton)

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NEW YORK (AP) — New York City’s last horse racing track, where Seabiscuit, Man O’ War, Secretariat and other legendary thoroughbreds graced the winner’s circle during the sport’s heyday, is on its final stretch.

After more than 130 years, the once grand Aqueduct track is set to run its last live races this weekend. The final race, appropriately titled, “It Was a Good Run,” is posted for Sunday at 5:44 p.m.

The track, located next to John F. Kennedy International Airport in Queens, will remain open for betting on televised races — known as simulcasting — through Sept. 7.

“There’s a lot of history here. Just so many good horses,” said David Donk, a veteran horse trainer, in between afternoon races at Aqueduct earlier this month. “It’s had its use. But, you know, times change. Everything changes in life.”

The end of the “Big A” comes amid increased competition for gambling dollars. Slot parlors, casinos, state lotteries and, more recently, legalized online and sports betting have all steadily eroded the allure of what once was dubbed the “sport of kings.”

There are roughly 75 thoroughbred tracks nationwide, compared to the more than 300 facilities offering some form of horse racing during the sport’s Gilded Age peak in the late 1800s, according to the National Thoroughbred Racing Association, an industry trade group.

Among the other major tracks that have closed in recent years are Arlington Park in Illinois, which was purchased by NFL’s Chicago Bears for a potential new stadium, and Golden Gate Fields in the San Francisco Bay Area.

“For over 100 years, thoroughbred racing was one of very few sports outlets you could legally bet on,” said Tom Rooney, the association’s president. “With the expansion of sports gambling, our sport will naturally condense and coalesce around a more pragmatic number of marquee tracks and locations, similar to other sports.”

Indeed, a large chunk of Aqueduct’s hulking site, where a crowd of 75,000 celebrated Mass with Pope John Paul II in 1995, has for years been home to a Resorts World casino. The gambling hall began offering live table games like blackjack, poker and craps earlier this year after winning a lucrative state license to operate a Las Vegas-style resort, and has plans for a glitzy, multibillion dollar expansion.

Some 9 miles (14 kilometers) east, just over the city line on suburban Long Island, the famed Belmont Park racetrack — home to the third leg of horse racing’s Triple Crown, the Belmont Stakes — is set to reopen in September after a roughly $550 million renovation. State funding for that project was contingent on the New York Racing Association, which operates the tracks, returning Aqueduct’s more than 100 acres (40 hectares) to the state for future redevelopment and consolidating thoroughbred races at Belmont and Saratoga Race Course upstate.

“We couldn’t have gotten the money to rebuild Belmont and continue to race at Aqueduct. You have to make these choices,” said Andy Serling, the track’s longtime television analyst and race handicapper. “I don’t think you’ll find anybody here that’s not gonna tell you they’re gonna miss Aqueduct, but we’re also incredibly excited to be opening this beautiful new building at Belmont.”

Originally opened in 1894, Aqueduct took its name from an old aqueduct running through the property that brought fresh water from Long Island to New York City.

It was a relatively modest operation until a dramatic reinvestment in 1959, which brought a dedicated subway stop, air-conditioned restaurants and lounges along with a roughly 35,000-seat grandstand complete with escalators, elevators and other amenities. The Associated Press, at the time, declared the transformed track “the world’s most modern and luxurious horse plant.”

Legendary Triple Crown winner Secretariat won the first race of his storied career at the track in 1972, then trotted out for a final farewell the following year.

Seattle Slew’s big win at Aqueduct in 1977 served as the final tuneup en route to sweeping the Triple Crown later that year. And in 1994, Cigar launched his historic, 16-race winning streak at Aqueduct.

Taking a break between races on a recent Friday afternoon, Hall of Fame jockey John Velazquez recalled how his decorated career began at Aqueduct.

The 54-year-old native of Puerto Rico said it took weeks going up against some of the top horse riders of the time for him to win his first career race. Velazquez has since notched more than 6,700 victories and holds the most purse earnings of any jockey in North America.

“This is where I developed my craft, where I learned everything that I know,” Velazquez said after winning his first race of the day. “The years that I spent here made me the jockey that I am today.”

Inside the cavernous grandstand, longtime gambler Roy Brown reminisced how he tried getting into the business himself after one big win at the track.

The 68-year-old retiree from Queens said he hauled in around $60,000 on a “pick-six” in the late 1980s — a difficult bet in which a gambler has to pick the winning horse for six straight races.

The native of Jamaica, who had no experience in the industry outside of gambling, used some of his profits to buy two horses. But he and the thoroughbreds ended up having brief racing careers.

“It’s best to bet on them, not own them,” Brown said with a laugh. “If you’re really passionate about it, it’s your best two minutes. Nothing’s sweeter than seeing your horse coming down the stretch or coming from behind and at the wire, knowing you got it.”

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Follow Philip Marcelo at https://x.com/philmarcelo

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NEW YORK (AP) — Saks Global, the parent company of Neiman Marcus, Saks Fifth Avenue and Bergdorf Goodman, officially emerged from Chapter 11 bankruptcy Friday with fewer stores, less debt, a more focused strategy to pamper the affluent — and a new name.

The company said Friday that the new entity will be called Exemplar Luxury Group, and with an improved balance sheet, including a nearly 75% debt reduction and $500 million in extra financing. Its CEO, Geoffroy van Raemdonck, said the New York-based company is ready for its next chapter after navigating several tumultuous years.

“Today is really a brand new day for the organization and a new day where these three iconic banners have the right funding, the right equity and a bright future ahead of them,” van Raemdonck told The Associated Press on Friday during a phone interview.

Van Raemdonck said that the new name signifies the company’s focus on having an exemplary shopping experience — the best merchandise, and better personalized service with customers, with help from its sales associates and the treasure trove of data it has on its customers. The company employs more than 1,500 sales associates who have sold more than $1 million of goods each, he said.

Saks Global had filed for bankruptcy protection in January of this year, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, in July 2024.

Before the bankruptcy, there were 33 Saks stores and 36 Neiman Marcus locations, according to the company, as well as its Bergdorf Goodman store on Fifth Avenue and roughly 70 Saks Off 5th discount stores.

Now, there are a total of 49 stores — 15 Saks Fifth Avenue stores, 33 Neiman Marcus stores and its Bergdorf Goodman store. The company shuttered most of its Saks Off Fifth discount stores, and it now has 12 outlets, the company said.

Exemplar Luxury Group said it has been teaming up with Pentwater Capital Management and Bracebridge Capital throughout its restructuring process. Both firms will have two representatives on the seven-person board. In addition, van Raemdonck as well as former Ulta Beauty CEO Dave Kimbell and Philippe Schaus, who most recently served as Global CEO of Moët Hennessy, will serve on the board, the company said.

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DALLAS (AP) — Drop thousands of Argentina fans into Texas for the World Cup and the debate is inevitable. It’s not about who has the best team or whether Lionel Messi is the best player at the tournament. It’s about who produces the best, most succulent steaks, and how to prepare the meat.

That’s right: There’s a beef about beef between two of the top cattle-raising areas of the world, where steak is deeply ingrained in diet and culture. Texas ranks No. 1 in the United States in beef production and the U.S. is second only to Brazil globally, according to the U.S. Department of Agriculture. Argentina ranks sixth.

It’s a high-steaks question: Who does do it best?

“Argentine beef is simply unbeatable. The savory texture, the style of the cut — there is no competing with it,” said Carlos Eduardo Barahona, 64, an Argentine chef who’s lived in Texas since 1998.

From the cheapest cuts to the most expensive, Argentina is tops, asserts Barahona, who has worked in restaurants across Argentina, Uruguay, and Texas.

“You can make an (Argentine) asado with the cheapest cut in our country and you will enjoy it. Here, you can use the best meat, like tenderloin, and depending on its source, it can turn out tough, inedible or tender. But our beef has a completely different flavor profile,” Barahona said.

Argentine beef cattle is mostly grass-fed on open pastures, taking longer to reach the point it is ready for market. The result is leaner meat with intense earthy flavors.

Predominantly grain-fed beef in Texas and the U.S. will have more marbling — the streaks of intramuscular fat that act as internal baster and make the meat juicy and tender — and a sweeter flavor.

“There’s no better beef than U.S. beef, particularly Texas beef,” said Texas Agriculture Commissioner Sid Miller.

But Argentine beef is very good too, Miller said. Thanks to Texas.

Miller said his agency opened a marketing office more than a decade ago to connect Texas’ cattle raisers with ranchers in South America, notably in Argentina.

“I don’t want to disparage our friends in Argentina, but we have helped them improve,” he said.

“Their genetics were lacking. We do have them up to pretty high quality. We sold them a lot of semen, embryos, and breeding stock,” Miller added.

Miller congratulated Argentine farmers on improving the quality of their cows.

“Their herds have American genetics in them, so they should be good,” Miller said.

Argentine fan Gonzalo Herrera browsed packaged meat at a Walmart in Arlington, Texas, after watching Messi score two goals in a win over Austria. He shrugged at the whose-beef-is-better debate.

“Honestly, I don’t see a massive difference,” Herrera said as he packed four T-bone steaks into his shopping cart.

“The key is knowing exactly which cuts to buy and finding the equivalent of what we eat in Argentina,” he said, shaking his head at the $45 price.

“Prices are higher here,” Herrera said.

The beef banter just as easily boils down to recipes and preferences in style and thickness of cuts. It’s a matter of taste, quite literally, when it comes to seasoning, searing, smoking, butter, pepper, sauces and so forth.

At Corrientes 348 Argentinian Steakhouse in Dallas, steaks are prepared with just salt and mesquite charcoal, said assistant manager Emmanuel Tobon.

“There’s a big difference. Texans use a lot of pepper, they use butter, they use a little barbecue (sauce),” Tobon said. “(Argentines) like to bring all the flavor of the steak by only using salt.”

Argentina still has at least one more match to play in Dallas, on Saturday. Fans of the Albiceleste have been packing the restaurant, seeking a quick taste of home during the World Cup.

“They have been enjoying the Texas culture,” Tobon said. “(But) it has been a great pleasure to have all of them, to make them feel like home.”

Argentines are fiercely proud of their steak culture, recipes that have been passed down for generations, and the “sacred” work of the grill master at large family meals, he said.

For Fernando Garcia Morillo, an Argentine from Buenos Aires who now lives near Miami, the meat from both countries is great. But he longs for the traditions of home whenever he orders steak in the U.S.

“I order just salt, no pepper, just plain,” Morillo said. “Sometimes they use a lot of sauce.”

He dismissed any notion of a beef between the U.S and Argentina.

“Maybe there’s a rivalry as usual against Brazil, our neighbor,” he said. “I love the U.S. meat.”

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Vertuno reported from Austin, Texas.

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See more of AP’s World Cup coverage here

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By Andrea Shalal

WASHINGTON, June 26 (Reuters) – The International Monetary Fund’s chief economist on Friday said Federal Reserve Chair Kevin Warsh’s plan to reduce forward rate guidance on monetary policy was “entirely appropriate,” although central banks would always need to provide some long-term guidance for markets.

Pierre-Olivier Gourinchas, who leaves his post to return to academic life next week, said strong forward guidance had gotten “really bad press” because it committed central banks to some future action, regardless of economic developments.

“That is something that is not tenable, of course,” Gourinchas told Reuters in an interview, adding that such rigid guidance had proven to be very costly when U.S. inflation surged in 2021 and 2022 but the Fed did not act quickly because it had earlier promised to keep rates steady.

“So I think moving away from these strong forms of forward guidance is entirely appropriate. Saying there is no forward guidance, I don’t think that is actually the case ever. You do it explicitly, or implicitly, the market is going to form a view,” he said.

Warsh, who took over as Fed chief last month, has launched an ambitious review that could reshape how the central bank makes decisions and communicates with the public. In his first policy meeting as chair, he organized a unanimous consensus around a stripped-down policy statement that jettisoned any forward guidance on what actions the central bank might take in the near term.

Gourinchas’ comments were the first by a senior IMF official on the Fed’s new approach. They followed years of entreaties by the global lender that central banks be transparent about their monetary policy plans to ensure that inflation expectations remained anchored.

Gourinchas said the IMF had seen some other central banks moving in the same direction, although many were still under inflation targeting regimes, which were aimed at managing inflation one or two years into the future.

“You need to provide some amount of guidance, so that the market will form some views about what the long-term rates are going to be, and that actually is what’s going to have an influence on the conditions,” he said.

Even if central bankers were not explicitly stating their expectations, they would respond and correct market expectations if they deviated too much, he said. “If that view somehow is not the one that you want to communicate, central banks will communicate differently, and they will try to guide where they want it to be,” he said.

Gourinchas noted that markets, businesses and banks were always looking for clues to guide their investments, set mortgage rates and plan for the future, a push that went beyond the regular meetings of the Federal Open Market Committee to set interest rates.

(Reporting by Andrea Shalal; Editing by Andrea Ricci)

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WASHINGTON (AP) — President Donald Trump on Friday threatened a 100% tax on imports from any country that imposes a tax on digital services from United States companies.

In a post on social media, Trump took aim at European countries that he said are discussing “imminent” implementation of taxes on American companies. The U.S. president has repeatedly sought to use tariffs as way to deter such taxes, but many countries are looking for revenues as their economies increasingly operate in digital realms that are dominated by American companies.

“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump wrote.

He added that the new tax would supersede any previously negotiated trade deals. Trump said the penalty would apply to any country that moves forward with such a tax, but he singled out European nations in his post.

The move could lead to a larger showdown that could increase prices and hinder economic growth, possibly setting off a larger trade war if the 27-member European Union was compelled to retaliate.

“Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,” said Olof Gill, a spokesperson for the European Commission on Friday.

He defended taxation on technology companies as “non-discriminatory” and applied equally to “all large companies, regardless of their origin.”

Trump has repeatedly pushed against foreign efforts to tax or regulate American tech giants. Last year, he threatened new tariffs on any country that moved to do so. A post from last August said that digital taxes and regulation “are all designed to harm, or discriminate against, American Technology.”

The threat comes ahead of Trump’s July 4 deadline for the European Union and the United States to start implementing a tariff deal that caps tariffs on most EU exports at 15%.

The European Union in May finalized a trade deal with the United States that caps most tariffs on EU exports at 15%. The deal followed months of debate within the EU after European Commission chief Ursula von der Leyen tentatively struck the deal last year while visiting Trump’s golf course in Scotland.

Digital taxes were not part of the agreement and have remained a sticking point between the U.S. and the European bloc.

The U.S. government has previously conducted tariff investigations into digital services taxes under Section 301 of the Trade Act of 1974. But it was unclear how Trump would carry out his threat and whether he would apply the tariffs broadly or initially target certain nations.

Britain, which is no longer part of the EU, has since 2020 levied a 2% digital services tax on revenues earned by search engines, social media sites and online marketplaces that “derive value” from U.K. users.

The British government said in a policy document at the time that corporate tax rules for digital businesses had “led to a misalignment between the place where profits are taxed and the place where value is created.”

The U.K. tax includes thresholds, so mainly large international companies will pay it. The tax was designed to “ensure the large multinational businesses in-scope make a fair contribution to supporting vital public services,” the document said.

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AP reporters Sam McNeil in Brussels and Kelvin Chan in London contributed to this report.

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