AI may be doing more than driving hype—it’s helping prop up the US economy. Harvard economist and former IMF Deputy Managing Director Gita Gopinath says a surge in AI investment helped offset the economic drag from tariffs. “The positive effect that came from AI offset the negative effect that came from tariffs,” she explains, noting that the two were “almost equivalent.”

As part of a…

As part of a larger conversation in the latest episode of GZERO World, Harvard economist and former IMF Deputy Managing Director Gita Gopinath breaks down the economic impact of the Iran war—and why the US is relatively insulated.

So far, she says, the shock is modest compared to past crises. Global growth is expected to drop by about 0.3 percentage points—a fraction of the damage seen…

With midterms approaching, economists say it may be too late for Trump to shift how voters feel about the economy. Economist Scott Lincicome says the White House has limited options. “Other than eliminating a lot of the tariffs, which we know isn't going to happen,” he argues, the administration would need to focus on affordability—things like housing deregulation or tax changes aimed at…

At the Munich Security Conference, the mood is clear: Europe no longer assumes the United States will lead.

Ian Bremmer reports from Munich, where this year’s theme, “Under Destruction,” reflects growing anxiety that the US itself is destabilizing the transatlantic alliance it once anchored.

While European leaders talk openly about autonomy and de-risking from America economically…