Economy

The federal government shutdown is quickly approaching the second longest on record with no end in sight.

Against the background of a dismal federal jobs report, two Iowa business group leaders on Friday said the state’s employers remain optimistic about the economy here, although they also warned against the impact of ongoing uncertainty in federal trade policy.

Inflation rose last month to its highest level since February as President Donald Trump's sweeping tariffs are pushing up the cost of a range of goods, including furniture, clothing, and large appliances.

Global clashes and trade wars hammered Midwestern states’ agricultural economies early this year, while a continuing boom in Southeastern states’ housing and tech jobs kept their economies humming along.

Iowa’s economy had a rough first three months of the year, according to federal data. While Gov. Kim Reynolds blamed a sluggish farm economy and former President Joe Biden, state experts say Iowa’s economy has been struggling for much longer.

Stocks surged to one of their biggest gains since World War II after President Donald Trump paused his tariffs against most other nations, as investors had desperately hoped he would.

Hours after global stock markets tumbled, Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Washington) introduced a bill Thursday requiring Congress to approve any tariffs within 60 days of their proposal by the president.

Stock markets worldwide are careening even lower Friday after China matched President Donald Trump’s big raise in tariffs in an escalating trade war. Not even a better-than-expected report on the U.S. job market, which is usually the economic highlight of each month, was enough to stop the slide.