(NEW YORK) — Artificial intelligence company Anthropic says it blocked several possible attempts to use its AI technology for research that could potentially support the development of biological weapons, according to a new report from the company.
Anthropic, the company behind the Claude AI assistant, said it disrupted dozens of instances of potentially malicious use of its AI models since December 2025, including several examples of what the company described as “biological misuse.”
The report details five case studies involving the use of Anthropic’s models in ways the company said “could support biological weapons development.”
In one instance, Anthropic said a researcher outside the United States accessed Claude from a region where the AI assistant is not supported and used the model while researching highly pathogenic avian influenza, or bird flu. According to the company, the research focused in part on the virus’ adaptation to mammals.
Anthropic said the research was “clearly dual use in nature,” noting that understanding how the virus adapts could help scientists identify naturally emerging variants with pandemic potential but could also produce information that could potentially be used to make a virus more dangerous.
Anthropic said it banned accounts associated with the cases but stressed that it could not determine whether the researchers intended to cause harm.
“We do not assert that they intended harm,” the company said in the report.
This is not the first time Anthropic has released a report detailing potential misuse of AI. The company has issued three prior threat assessments detailing malicious uses of AI.
The latest report was released days after former Anthropic and OpenAI researcher Jacob Coxon spoke publicly about his concerns over increasingly powerful AI systems.
“If you extrapolate into the future, the level of capabilities of these AIs,” Coxon told CNN. “They could cause extreme havoc, for example, hacking critical infrastructure, building extinction-level bioweapons.”
Coxon’s comments come as a growing number of lawmakers on Capitol Hill are calling for increased government oversight and new safety regulations for AI development.
Customers shop at a grocery store on Sept. 10, 2026, in Chicago, Illinois. (Scott Olson/Getty Images)
(WASHINGTON) — Inflation held steady in August but price increases remained elevated as the Iran war continued to push up fuel prices months after it began. The reading matched economists’ expectations.
Prices rose 3.4% in August compared to a year earlier, maintaining the same level from the prior month, federal government data released on Friday morning showed.
Inflation stands more than a percentage point higher than the Federal Reserve’s target rate of 2%.
Gas prices jumped nearly 4% in August from July, accounting for about a third of the overall price jump last month, the U.S. Bureau of Labor Statistics said. Shelter prices — which include home-owner payments and rental charges — also sped up in August from July.
Groceries provided a bright spot in the report, however. The price of groceries stayed flat in August from July, putting annual inflation for groceries at 2.2%. That figure for grocery inflation stands well below the annual pace of overall price increases.
The fresh data arrived days after oil prices topped $100 a barrel and gas prices notched their highest level for any Labor Day on record.
The economy has shown signs of additional strain in recent days, including a bond selloff that threatens to raise borrowing costs for mortgages and credit cards.
Central bankers are sure to closely examine the inflation report as they weigh a potential interest rate hike at their meeting next week. Federal Reserve Chair Kevin Warsh has vowed to cool off persistently elevated price increases.
Despite a stubborn bout of inflation, the economy remains fairly robust by some measures.
A blockbuster jobs report last week showed employers added 162,000 workers in August, demonstrating continued resilience for the nation’s labor market. The economy grew over three months ending in June, defying fear of a downturn triggered by the Iran war.
Inflation, however, continues to weigh on shoppers, while raising the likelihood of Fed intervention that may slow the economy.
Attacks on oil tankers in the Middle East pushed global crude prices above $105 a barrel as of Thursday, which amounted to a rise of about 50% since the Iran war broke out in late February.
The average price of a gallon of gas in the U.S. stands at $4.29, putting it more than $1.30 higher than before the war, AAA data showed.
Record-high diesel prices have raised transport costs for many everyday products, including groceries, clothes and furniture.
The price woes have divided central bankers eager to contain inflation but reluctant to cool off the labor market.
The Fed opted to hold interest rates steady at its most recent meeting in July. Three of the 12 members on the Fed’s policymaking board, however, voted in favor of a rate hike, marking the largest number of dissenters casting ballots in the same direction since 2016.
Financial markets peg the odds of a quarter-point rate hike next week at 71%, according to the CME Group’s FedWatch tool, a measure of investor sentiment.
Warsh, who took the helm of the central bank in May, said late last month that it should prioritize fighting inflation.
“Inflation is running above our 2% target so the Fed’s predominant focus right now should be on prices,” Warsh said in remarks last week at the Fed’s annual summer gathering in Jackson Hole, Wyoming.
“If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial high-fliers. Hard-working Americans are the ones left to deal with inflation that is too high or jobs that suddenly appear less secure,” Warsh added.
(NEW YORK) — If you’re a millennial, you may remember the beauty and lifestyle influencers of the 2000s and 2010s. Back then, influencers were maximalists, competing to out-consume one another with walk-in closets filled with designer bags and shoes, and entire rooms dedicated to their makeup collections.
But in 2020, the economy began rapidly changing in response to the COVID-19 pandemic, and the culture around influencers has followed suit.
According to recent Pew Research Center polling, only 24% of Americans rate the economy as excellent or good, and 66% are worried about the price of food and consumer goods. As their economic realities change and everyday necessities become harder to afford, people are moving away from content centered on over-consumption at a luxury price point.
A new generation of influencers is adapting to this perceived economic downturn and the growing number of viewers with a lot less cash to spare.
One of these creators is trend analyst and fashion expert Mandy Lee. She has amassed over 900,000 followers across Instagram and TikTok with content focused on trend predictions, runway reviews and her own funky, luxe style. In 2024, Lee designed the 75 Hard Style challenge based on a popular diet and fitness program. She challenges her audience to create 75 unique outfits over 75 days without purchasing anything new.
Over 70,000 people have participated in the challenge since its launch, according to Lee’s Instagram. It has inspired Lee’s followers to get creative with their wardrobes, while making them more mindful shoppers.
Influencers in the beauty space are also helping their followers find ways to get glam on a budget.
Shelby Ann Bell, an Atlanta-based bridal makeup artist, has built a platform of over 2.5 million followers on TikTok by posting viral makeup routines using affordable products. Bell’s techniques have inspired her followers on a budget to save money by using products easily found at the drugstore.
Growing up in Aiken, South Carolina, Bell became interested in makeup at a young age, but she did not have the budget for expensive beauty products.
“I really can resonate with the person who is sitting on the other side of the screen, and feeling like times are tough, and they just want to escape, feel confident, or feel beautiful,” she told ABC News. “Being able to do that at an affordable price point or on a budget is really important to me.”
Another popular creator encouraging her followers to save is Pooja Jain. With a master’s degree in biomedical and bioengineering and experience in pharmaceutical sciences, she uses her background to help TikTok followers find beauty and skincare routines on a budget.
Jain finds affordable substitutes by studying ingredient lists in luxury beauty products, identifying cheaper products with similar key ingredients and explaining in layman’s terms what each ingredient’s purpose is.
Her audience has grown exponentially over the past year, as skincare and makeup lovers seek ways to cut back on unnecessary spending by replacing high end products with affordable alternatives.
These are just a few examples of a growing trend. A new generation of influencers are gaining large platforms by meeting their audiences where they’re at financially. And as the economy continues to change, this will surely not be the last era of influencers to help audiences on a budget.
Apple CEO John Ternus speaks during the keynote address at Apple’s “Surprise and Shine” event at the company’s corporate headquarters on Sept. 9, 2026, in Cupertino, California. (Benjamin Fanjoy/Getty Images)
(NEW YORK) — Apple announced its first-ever foldable iPhone at its annual products event on Wednesday as customers worldwide watched for fresh products, as well as the debut of Apple CEO John Ternus.
The foldable smartphone, called iPhone Duo, folds open like a book, producing one continuous screen that is 80% larger than the company’s latest version of the iPhone Pro, the company said, adding that when opened it will also be the thinnest iPhone ever.
The screen will be compatible with the iPhone Pencil, currently available only for iPad users, and can also be unlocked with Apple Watch, according to Apple.
iPhone Duo will come in two colors, Apple said — Star White and Night Sky — and can also be used partially folded.
The announcement marked Apple’s splashy entry into a long-existing product category. Foldable phones came onto the market in 2018, but they account for a small fraction of smartphone sales.
“Others have created a foldable that feels like two phones awkwardly stuck together,” Ternus said, adding that iPhone Duo will “redesign the experience of using a foldable phone.”
Prices for the iPhone Duo start at $1,999. It will be available for pre-order on Oct. 16 and in-store on Oct. 23, Apple said.
The company also unveiled the latest models of its smartphone: iPhone 18 Pro and iPhone 18 Pro Max. The products boast an improved camera, a bolstered memory chip and a longer battery life compared to their predecessors, Apple said. Each of the models is also equipped to integrate Apple Intelligence, the company’s AI capability.
The price of the iPhone 18 Pro starts at $1,199, while the iPhone 18 Pro Max starts at $1,299. Both smartphones are available for pre-order on Sept. 12 and in-store on Sept. 18, according to Apple.
The glossy showcase comes days after Ternus took the helm of the tech giant on Sept. 1, after having worked at the company for 25 years. Ternus replaced former CEO Tim Cook, who succeeded co-founder Steve Jobs in 2011.
The world’s second-largest company, as measured by market capitalization, depends largely on its smartphone business while offering an array of other products such as its iPad, Apple Watch and MacBook.
Shares of Apple have surged 22% in value over the past six months, far outpacing the S&P 500’s growth of 13% over that period.
The expected announcement of a foldable iPhone marks Apple’s latest effort to weigh in with a standout option in an existing product category, often at a higher price point.
In 2024, the company unveiled Apple Vision Pro, a mixed reality headset meant to compete with Meta Quest and other early-to-market offerings. At the time, the most affordable version of Apple Vision Pro sold for $3,499.
Apple also unveiled AI-driven features across several key products in 2024, heralding its long-awaited entry into the high-stakes AI race. The AI capability, dubbed Apple Intelligence, amounts to the “next big step for Apple,” Cook said at the time.
Apple released Apple Watch in 2014, referring to it then as the company’s latest “category-defining product.”
U.S. President Donald Trump (R) and Canadian Prime Minister Mark Carney speak to reporters in the Oval Office of the White House on Oct. 7, 2025, in Washington, DC. (Anna Moneymaker/Getty Images)
(NEW YORK) — Barters Island Bees, a honey seller in Maine with flavors like “Gentle Ginger” and “Blueberry Lemon,” grew year after year — until a trade dispute broke out between the United States and Canada, chief executive Garret Denniston said.
Sales shrank last year after a drop-off in Canadian tourists hammered business at farmers’ markets and fairs, Denniston said. But revenue has bounced back, he added, surging 75% this year compared to the same period in 2025, in part due to an uptick in Canadian customers as tensions appeared to thaw.
“We thank Canadian tourists every time we see them,” Denniston told ABC News, but he said he’s worried a rekindled trade spat will curtail tourism again. “I’m just astounded. It’s only reasonable to expect it will go back in the other direction.”
When asked whether the trade war could help shape a highly competitive U.S. Senate contest in Maine, Denniston said, “Oh, absolutely. It definitely can.”
Tit-for-tat tariffs issued by the U.S. and Canada in recent weeks risk outsized harm for consumers and businesses in states near the northern border, some analysts told ABC News. Many of those states play host to key races in the battle for control of Congress in November’s midterm elections, including Senate contests in Maine, Ohio and Michigan.
Fresh levies on $20 billion in Canadian goods are expected to hike prices for imports ranging from orchids to hockey sticks, many of which are sold predominantly in states along the border, some analysts said.
A set of matching retaliatory tariffs that took effect on Tuesday, they added, may crimp sales for nearby U.S. businesses that export products to Canada. A drop in cross-border tourism could also damage companies located within a short trip from Canada, they said.
“If you go far up north, it’s an arbitrary line in the dirt between what’s in Canada and what’s in the U.S.,” Tyler Schipper, a professor of economics at the University of St. Thomas, Minnesota, told ABC News.
For now, levies apply to a sliver of goods that travel between the U.S. and Canada, limiting the overall impact of the trade dispute. The tariffs issued in recent weeks apply to only 6% of U.S. imports into Canada and 5% of Canadian imports into the U.S.
Still, some analysts said, the effects will likely be more pronounced in several states near the U.S.-Canada border, which account for a disproportionately large share of trade with the nation’s northern neighbor.
Canada is the top foreign buyer of exports from 26 U.S. states, and the top source of imports for 22 states, according to an analysis of U.S. Census Bureau data issued by the Royal Bank of Canada (RBC) late last month.
Maine and Michigan each rank among the top 10 states in combined annual import-export business with Canada, while Ohio ranks as the 15th-highest state, RBC found. Montana, North Dakota and Minnesota also rank among the top states on the measure.
“Someone in Oklahoma doesn’t feel this as much as someone in Dearborn, Michigan,” Jason Miller, a professor of supply chain management at Michigan State University, told ABC News, pointing to a major city in the U.S. auto industry. “It’s purely a geography story.”
Even as supply chains stretch across a vast, global economy, trade remains simpler and cheaper along short distances, Miller said.
“Business-to-business relationships still matter, and at the end of the day, the farther you have to transport something, the more challenging and expensive things are,” Miller said.
In Michigan, the powerhouse auto sector has already felt the effects of President Donald Trump’s tariffs — and car companies would face additional fallout from a potential escalation, Glenn Stevens Jr., an executive director of MichAuto, a statewide industry trade group, told ABC News.
Last spring, Trump slapped 25% tariffs on imported cars and auto parts, putting strain on a highly integrated auto supply chain between the U.S., Mexico and Canada.
The measure excluded goods compliant with United States-Mexico-Canada Agreement, or USMCA, a free trade agreement, but it still resulted in $12.5 billion in duties paid on auto-related imports last year, according to the Anderson Economic Group.
Last month, Trump threatened to ratchet up tariffs from 25% to 50% on Canada-made cars and auto parts beginning in January. Trump did not mention an exemption for USMCA-compliant products.
The potential measure, Stevens said, “would absolutely be untenable for the industry to operate under. It would decimate supply chains and virtually grind business to a halt.”
A higher tariff would likely raise prices for consumers and threaten job losses in the state, Stevens added, before noting the attention garnered by trade policy as midterms approach.
“There’s no question in an increasingly intense, rhetoric-filled political season, tariffs and trade are very much a primary issue,” Steven said.
On the campaign trail, Democratic Senate candidate Abdul El-Sayed said Republican Rep. Mike Rogers would be a “rubber stamp” for Trump in the Senate as Rogers has largely defended the president’s trade strategy, arguing that economic pressure on Canada is necessary to protect American jobs.
“Trump is escalating a trade war with Canada for his own vanity,” El-Sayed wrote in a social media post.
Rogers’ campaign previously declined to comment on the new round of tariffs on Canada, pointing instead to his past comments on bolstering U.S. manufacturing.
The White House said the tariffs put Americans first.
“Countless American workers, farmers, and businesses have borne the brunt of America’s lopsided trade relations, including with Canada which has demanded total access to the American market without reciprocity,” Desai wrote in a statement. “President Trump will never stop fighting to put Americans and America First.”
In Maine, Republican Sen. Susan Collins, who is running for reelection, said the dispute would raise costs for families and businesses in the state.
“The on-again/off-again trade talks between the U.S. and Canada lead to higher costs, risk, and uncertainty for Maine businesses. If the Administration proceeds with these tariffs, they will increase costs for Maine families, as most businesses will have no choice but to pass on the tariffs to their customers through higher prices,” she wrote on X late last month.
Despite her opposition, Trump’s tariffs have become a campaign talking point as Democratic challenger Troy Jackson, a former state senator, attempted to tie Republicans to Trump’s policies.
Jackson called the tariffs a “direct tax on working families.”
“Having spent most of my life working along the border, I know how vital trade with Canada is to Maine. Trump’s tariffs are a direct tax on working families,” Jackson said.
For some who live in states near the U.S.-Canada border, however, the trade war may not play a role in their ballot decisions.
Fred Fritz, a retiree who lives in East Lansing, Michigan, sharply criticized the tariffs on Canada imposed by Trump. Still, Fritz added, he remains undecided in the state’s high-stakes U.S. Senate contest between Rogers and El-Sayed.
“I don’t like either candidate,” Fritz said, before describing what he considers flaws of each one. “I’m not impressed.”
ABC News’ Gaby Vinick and Benjamin Siegel contributed to this report.
Apple CEO John Ternus speaks during the keynote address at Apple’s “Surprise and Shine” event at the company’s corporate headquarters on Sept. 9, 2026, in Cupertino, California. (Benjamin Fanjoy/Getty Images)
(NEW YORK) — Apple held its annual product event on Wednesday as customers worldwide watched for fresh products as well as the debut of Apple CEO John Ternus.
Observers widely expect the company to unveil its first-ever foldable iPhone, marking Apple’s splashy entry into a long-existing product category. Foldable phones came onto the market in 2018, but they account for a small fraction of smartphone sales.
The product event, dubbed “Surprise and Shine,” kicked off in Cupertino, Calif., at 1 p.m. Eastern Time. It can be viewed on the company’s website.
The glossy showcase comes days after Ternus took the helm of the tech giant on Sept. 1, after having worked at the company for 25 years. Ternus replaced former CEO Tim Cook, who succeeded co-founder Steve Jobs in 2011.
The world’s second-largest company, as measured by market capitalization, depends largely on its smartphone business while offering an array of other products such as its iPad, Apple Watch and MacBook.
Shares of Apple have surged 22% in value over the past six months, far outpacing the S&P 500’s growth of 13% over that period.
The expected announcement of a foldable iPhone marks Apple’s latest effort to weigh in with a standout option in an existing product category, often at a higher price point.
In 2024, the company unveiled Apple Vision Pro, a mixed reality headset meant to compete with Meta Quest and other early-to-market offerings. At the time, the most affordable version of Apple Vision Pro sold for $3,499.
Apple also unveiled AI-driven features across several key products in 2024, heralding its long-awaited entry into the high-stakes AI race. The AI capability, dubbed Apple Intelligence, amounts to the “next big step for Apple,” Cook said at the time.
Apple released Apple Watch in 2014, referring to it then as the company’s latest “category-defining product.”
The sprawling BP refinery is shown on Sept. 8, 2026, in Whiting, Indiana. (Scott Olson/Getty Images)
(LONDON) — The global price of oil topped $100 a barrel on Wednesday for the first time since July, as continued tensions between Iran and the United States added to uncertainty over future supply.
The rise followed a statement on Tuesday by U.S. Central Command, which said that its forces destroyed five Islamic Revolutionary Guard Corps oil tankers.
The IRGC followed those strikes by issuing a warning that all oil tankers in Kuwaiti and Bahrani waters should be evacuated.
Brent crude oil prices, a benchmark for global trading, climbed about 2.7%, trading at about $100.57 a barrel for contracts with November deliveries.
U.S. oil traded at about $95 a barrel, up by about 2%.
A large-scale U.S.-Israeli attack on Iran in late February prompted Iran’s near-closure of the Strait of Hormuz, which facilitates one-fifth of global crude supply.
The ensuing war set off the largest oil supply disruption on record and prompted the release of hundreds of millions of barrels of reserve crude from emergency storage in dozens of countries. A six-month stretch of on-again, off-again fighting has continued to choke off oil supply and keep prices elevated.
Oil prices account for a large share of the price of gasoline. The average price of a gallon of gas in the U.S. currently registers at $4.22, according to AAA, marking a 41% jump since the war broke out.
Diesel prices in the U.S. hit a new record high on Wednesday, jumping to an average of $5.94 a gallon, AAA data showed. High diesel prices push up transport costs for many everyday products, including groceries, clothes and furniture.
Selection of products target by Canada’s retaliatory tariffs. (Government of Canada)
(WASHINGTON) — Retaliatory tariffs issued by Canada hit some imports from the United States at one minute after midnight Eastern Time on Tuesday, intensifying a trade war between the longtime allies and risking an escalation from President Donald Trump.
Levies as high as 50% apply to hundreds of U.S. products, ranging from aluminum foil to raincoats to cheese. U.S. elected officials in states bordering Canada, including Republican Sen. Susan Collins of Maine, have warned the trade dispute will hurt local businesses and consumers.
Canadian officials said the retaliatory measure would target about $20 billion worth of U.S. products, mirroring the size of a recent batch of U.S. levies. The targeted goods amount to nearly 6% of annual U.S. exports to Canada, according to U.S. Census Bureau data for 2025.
A tit-for-tat trade war erupted last month after official negotiations collapsed and a fresh round of U.S. levies took hold. Within days, Canadian officials announced what they described as matching tariffs that would begin in the second week of September.
The Canadian tariffs target many products included in a batch of U.S. levies last month.
Trump has repeatedly warned of a forceful response if the Canadian tariffs were to take hold.
On Monday afternoon, Trump threatened to bar the sale of planes made by Canada-based aerospace company Bombardier unless the firm agreed to manufacture products in the U.S.
“If they want our Market, they must build here, and stop treating America like a ‘piggybank,'” Trump wrote in a social media post.
In a statement to ABC News, Bombardier said it generates jobs and other economic benefits in the U.S.
“The American aerospace industry is a clear winner on trade and exports. Bombardier is a strong contributor to the sector, creating tens of thousands of jobs across the United States. Aerospace is routinely one of the top export sectors for the United States and a continual trade surplus winner,” the statement said in part.
Late last month, Trump vowed to ratchet up tariffs from 25% to 50% on Canadian-made cars and auto parts beginning in January.
“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” Trump said on his social media platform at the time. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!”
Trump signed an executive order on Aug. 27 changing the name of Lake Ontario to “Lake America.” Days later, Trump posted on social media an AI-generated video of birds with Trump’s signature hairstyle marching with firearms to protect a body of water labeled “Lake America.”
Canada said it will continue referring to the lake as “Lake Ontario.” In a post on X late last month, Canadian Prime Minister Mark Carney said, “This lake is called Lake Ontario — today and forever.”
Carney rebuked the Trump administration further last week, saying U.S. public messaging signaled an unwillingness to negotiate a resolution.
“When the Americans stop doing memes, stop throwing shade and stop trying to be tough, and start being serious about having those discussions, we can have those discussions,” Carney said.
In the first half of 2026, the U.S. exported $175.8 billion in goods to Canada — the second-biggest export trading partner after Mexico — accounting for 14% of all U.S. exports, according to the Census Bureau.
For now, levies apply to a sliver of goods that travel between the U.S. and Canada, limiting the impact of the trade dispute, but a potential escalation threatens to deepen the pain for both economies.
“This is a classic trade-war situation: Somebody puts on a tariff, another country retaliates dollar for dollar and then more tariffs are added,” Campbell Harvey, a professor at Duke’s Fuqua School of Business who studies commodity markets, previously told ABC News. “Then we get into this really bad equilibrium.”
(NEW YORK) — The Transportation Security Administration has launched a new program that allows some people without a plane ticket to go through airport security.
The program, called Gateside by TSA PreCheck, allows eligible TSA PreCheck members to enter the secure area of participating airports to meet or see off friends and family at their gate, meet someone during a layover, or visit airport restaurants and shops.
Gateside is currently available at 13 airports across the United States, including Los Angeles International Airport, Dallas Fort Worth International Airport, Harry Reid International Airport in Las Vegas and San Diego International Airport.
The other participating airports are Phoenix-Mesa Gateway Airport, John Glenn Columbus International Airport, Detroit Metropolitan Wayne County Airport, Wichita Dwight D. Eisenhower National Airport, Indianapolis International Airport, Bill and Hillary Clinton National Airport, Will Rogers International Airport, Eppley Airfield and Salt Lake City International Airport.
TSA is assessing the program as it looks to expand it to additional airports.
The program offers a new way for people without boarding passes to access airport gates, which has been heavily restricted since the Sept. 11, 2001, terrorist attacks.
To use Gateside, visitors must have TSA PreCheck benefits and a Known Traveler Number, or KTN.
Visitors can apply online for a Gateside pass between one and three days before their planned airport visit. The Gateside pass is free and valid only for the approved visit.
Once approved, visitors must bring an acceptable form of identification and their Gateside approval to the airport and go through a TSA PreCheck security lane.
Visitors who do not have an acceptable form of identification can use TSA ConfirmID to verify their identity for a $45 fee, according to TSA.
Children can also participate but must be included on their parent or guardian’s application.
The new program comes as TSA continues to test new ways to change the airport security experience.
Earlier this summer, TSA began testing self-service ID checks for eligible travelers at several airports, including Los Angeles International Airport, Charlotte Douglas International Airport and Ronald Reagan Washington National Airport.
Sectors that added jobs in August. (U.S. Bureau of Labor Statistics)
(NEW YORK) — Hiring grew far more than expected in August, bouncing back from a decline in employment a month earlier, according to the federal government’s monthly jobs report.
Employers added 162,000 jobs in August, which marked a major improvement from 23,000 jobs lost in July, the U.S. Bureau of Labor Statistics data showed.
Hiring came in well above a monthly average gain of 31,000 jobs over the previous 12 months.
The unemployment rate held steady at 4.1%, a low level by historical standards.
Employment surged in restaurants and bars, which added 59,000 jobs in August, after averaging just 12,000 jobs gained each month over the past year. Hiring also grew in manufacturing, continuing a period of steady gains since the end of last year.
The fresh data demonstrated economic health, despite a bout of elevated inflation that continues to weigh on shoppers and nudge central bankers toward a possible interest rate hike.
The economy has shown signs of additional strain in recent weeks, including a bond selloff that threatens to raise consumer borrowing costs and a rise in oil prices amid renewed fighting between the U.S. and Iran.
The labor market grew at a solid pace over the first half of 2026, despite a historic oil shock that has driven up fuel prices and hiked supply-chain costs for a host of other goods.
The U.S. added an average of 92,000 jobs per month over the initial six months of this year, Bureau of Labor Statistics data showed. That pace marks an improvement from an average of about 7,000 jobs lost per month over the second half of 2025.
The Iran war drove up gasoline prices and catapulted inflation to a three-year high in May. Inflation eased in June and July, but a burst of on-again, off-again fighting in recent weeks caused crude prices to rise again.
The annual inflation rate stands at 3.4% as of July, the most recent month on record, putting inflation more than a percentage point above the Federal Reserve’s target rate of 2%.
The combination of elevated inflation and a fairly resilient labor market has raised the chances of an interest rate hike at the Fed’s meeting later this month, financial markets show.
Investors peg the odds of a quarter-point rate hike on Sept. 16 at about 62%, according to the CME Group’s FedWatch Tool, a measure of market sentiment.
A rate increase could help fight inflation but the move risks a slowdown in hiring. Central bankers, in turn, may examine the jobs report for information on the sturdiness of the labor market.
The Fed opted to hold interest rates steady at its most recent meeting in July, but central bankers appeared divided over the move. Three of the 12 members on the Fed’s policymaking board voted in favor of a rate hike, marking the largest number of dissenters casting ballots in the same direction since 2016.
Fed Chair Kevin Warsh, who took the helm of the central bank in May, said in recent days that it should prioritize fighting inflation.
“Inflation is running above our 2% target so the Fed’s predominant focus right now should be on prices,” Warsh said in remarks last week at the Fed’s annual summer gathering in Jackson Hole, Wyoming.
“If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial high-fliers. Hard-working Americans are the ones left to deal with inflation that is too high or jobs that suddenly appear less secure,” Warsh added.
