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US GDP 2%, Jobless Claims 1969 Low, Oil Prices Drop

5/1/2026

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Summary

Story summary

U.S. GDP grew 2% in Q1 2026, with March PCE rising 3.5% and core PCE 3.2%.
Spending totaled $195.4 billion in March, with $81.3 billion on gasoline and energy, gasoline $4 per gallon and crude $120 per barrel after Iran war lifted oil prices 50%.
Jobless claims fell to 189,000 for the week ending April 25, lowest September 1969, as Fed kept its rate at 3.5%-3.75% and spending rose 4.4% and outlays up 9.3% after shutdown.

History

Historical Context

During the 1973 Yom Kippur War, OAPEC imposed an oil embargo on the United States, causing world oil prices to jump nearly 300%—from $3 to $12 per barrel by 1974. The shock spurred U.S. rationing and long-term energy-security policies. Echoing that crisis, 2026 gasoline prices near $4 per gallon accompany volatile crude after the Iran-Hormuz conflict, reminding policymakers of the 1973 lesson.

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Story summary

U.S. GDP grew 2% in Q1 2026, with March PCE rising 3.5% and core PCE 3.2%.
Spending totaled $195.4 billion in March, with $81.3 billion on gasoline and energy, gasoline $4 per gallon and crude $120 per barrel after Iran war lifted oil prices 50%.
Jobless claims fell to 189,000 for the week ending April 25, lowest September 1969, as Fed kept its rate at 3.5%-3.75% and spending rose 4.4% and outlays up 9.3% after shutdown.

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