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Hegseth faces further grilling over Iran war strategy and costs – US politics live
TL;DR
US economic growth likely accelerated in Q1 due to increased government spending, but is expected to be short-lived as the Iran war raises gasoline prices. Consumer spending is losing momentum amid these economic pressures.
Key points
- US economic growth likely accelerated in Q1
- Government spending rebound after shutdown
- Iran war drives up gasoline prices
- Consumer spending losing momentum
- Pete Hegseth faces questioning on Iran war strategy
Mentioned in this story
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US economic growth likely accelerated in the first quarter on a rebound in government spending after a crippling government shutdown, but the pickup is expected to be short-lived as the war with Iran drives up gasoline prices and squeezes household budgets.
The anticipated increase in gross domestic product last quarter also would reflect robust growth in business investment in equipment, fueled by an artificial intelligence spending boom and the building of data centers underpinning the technology, Reuters reported.
The Commerce Department’s advance estimate of first-quarter gross domestic product on Thursday is, however, expected to show consumer spending losing further momentum even before the US-Israeli war with Iran raised the average US gasoline price to above $4 a gallon.
“We remain in relatively slow growth mode, nothing exciting,” said Brian Bethune, an economics professor at Boston College. “There’s nothing really to get a good fire going. There are some warm embers, but there is no fire out there.“
Hello and welcome to our US politics coverage as Pete Hegseth faces a second day of grilling from Democrats on Capitol Hill, with senators getting their first opportunity to confront or praise the Pentagon chief over his handling of the Iran war.
The defense secretary battled with Democrats - and some Republicans - yesterday during a nearly six-hour House armed services committee hearing, where he faced questioning over the war’s costs in dollars, lives and the diminishing stockpiles of critical weapons.
The Senate armed services committee will hear a similar presentation on the Trump administration’s 2027 military budget proposal, which would boost defense spending to a historic $1.5 trillion.
Yesterday Hegseth denied that the US-Israel war on Iran, which the Pentagon estimates has cost the US at least $25bn, was “a quagmire”.
During the hearing, California Democrat John Garamendi attacked Hegseth over the “astounding incompetence” that Garamendi argued had led to “political and economic disaster at every level”.
“The president has gotten himself and America stuck in a quagmire of another war in the Middle East,” Garamendi said. “He is desperately trying to extricate himself from his own mistakes; it is in America’s, and indeed the world’s, interest he succeed in that.”
Hegseth was incensed, responding “Your hatred for president Trump blinds you to the truth of the success of this mission … you call it a quagmire, handing propaganda to our enemies? Shame on you for that statement.”
Q&A
What is the expected impact of the Iran war on US gasoline prices?
The Iran war is expected to drive up average US gasoline prices to above $4 a gallon.
How has government spending influenced US economic growth in Q1?
Government spending has contributed to an anticipated acceleration in US economic growth during the first quarter.
What are the predictions for consumer spending in the US economy?
Consumer spending is expected to lose further momentum, indicating a slowdown in economic activity.
Who is Pete Hegseth and what is he being questioned about?
Pete Hegseth is facing questioning from Democrats regarding his handling of the Iran war as part of US politics coverage.
