A surprising slowdown in the U.S. economy. Here’s what’s going on.

Summary

Podcast Summary:

Apple News Today – “A surprising slowdown in the U.S. economy. Here’s what’s going on.”
Date: July 31, 2026
Host: Gideon Resnick (filling in for Shamita Basu)
Episode Theme: Examining recent economic data in the U.S., political turmoil in the Senate, medical neglect at an ICE detention center, and other notable headlines.

---

1. U.S. GDP Slowdown: Parsing the Numbers

Main Discussion ([00:26]–[03:54])

• Surprising GDP Numbers
  • U.S. economic growth slowed: 1.5% annualized GDP growth (April–June), compared to 2.1% prior quarter.
  • Despite the headline, underlying indicators suggest continued strength in key sectors.

“Look under the hood of the GDP report and you see that underlying growth was actually super strong. … The headline figure … is basically distortions in trade and swing in businesses piling up their inventories, things that are a drag on GDP but don't ultimately say anything about the health of the economy.”
– Courtney Brown, Axios ([01:07])

• Inflation & Resilience

  • Federal Reserve holds interest rates steady; Chair describes "impressive resilience."
  • Inflation remains high; affordability top-of-mind for voters.

• Consumer Spending

  • Wealthy Americans continue to spend robustly, which buoyed Q2 numbers, even amidst international crises.
  • Quote:

    “It's good to see that the consumer had a little bit of gusto and that helped carry strength in the second quarter.”
    – Courtney Brown ([01:55])

• AI & Infrastructure Investment

  • Surge in AI infrastructure investment is a major factor.
  • Increased imports for AI supply chain components widened trade deficit, impacting reported GDP.

“With respect to AI, we depend so much on foreign nations to make some of the inputs... Part of the story with the GDP report this quarter was a slew of imports related to the AI buildout weighing on growth.”
– Courtney Brown ([02:21])

---

2. The “AI Basket” & Market Jitters

AI-Driven Growth, Concerns, and Stock Market ([02:56]–[03:54])

• Heavy reliance on AI as a primary economic driver; questions raised about sustainability if boom slows.
• Tech-heavy Nasdaq dropped towards correction territory amid market fears over chip shortages, profitability, and corporate debt linked to AI.

“We are really putting all of our eggs in the AI basket … a huge contributor to growth this quarter and in previous quarters as well. So I think a skeptic might ask, what if the AI build out slows, tapers off, or …something changes in the outlook with respect to AI?”
– Courtney Brown ([02:56])

• Possible spillover of stock market volatility into the real economy is a concern.

“Do those jitters that are in the stock market … spill over into the real economy in a way that would stunt economic growth in the quarters to come?”
– Courtney Brown ([03:54])

• Upcoming jobs data could be an indicator of economic direction ([04:08]).

---

3. Political Gridlock: Trump vs. Senate Republicans

Attorney General Confirmation Battle ([04:08]–[07:36])

• Simmering Tensions
  • President Trump’s pick for Attorney General, Todd Blanch, lacks support from key departing GOP senators.
  • Objections center on settlement terms protecting Trump and his family from IRS audits and concerns over controversial DOJ funds.

“I am prepared to vote no. This is about making sure that even if you're the President of the United States, you don't get favorable terms from the government and a settlement of a lawsuit that ordinary citizens would not get.”
– Sen. John Cornyn ([05:11])

• Legislative Impasse
  • Trump pressures Senate Majority Leader John Thune to pass the Save America Act (elections overhaul).
  • Lack of votes (either bipartisan support for cloture or filibuster removal) stalls the legislation.

“There aren't the votes to do this voter ID and more bill that the president wants.”
– Burgess Everett, Semaphore ([05:54])

• Recess Wrangling
  • Some urge canceling August recess to force a vote; others see little point.

“If, in fact, staying here for the month of August means that we assume at some point there will be 10 Democrats who cross over … I think we can stay here till Christmas.”
– John Cornyn ([06:45])

• Impact on Campaigning

  • Delayed recess hurts senators' ability to return home and campaign before midterms ([07:08]).

• Trump's Senate Limitations

  • Trump’s influence over the Senate less robust than in the House.
  • Alienation of key senators through primaries, retirements, or policy disagreements.

“You don't have 50 votes for whatever Trump wants. … That's different than the House, because every time … the House doesn't have the votes … Trump can get on the phone, work with Mike Johnson, and they jam it through. You just can't do that in the Senate.”
– Burgess Everett ([07:36])

---

4. ICE Detention Center Medical Neglect Exposed

California City Case ([08:09]–[10:52])

• Federal Review & Findings
  • Largest ICE detention facility in CA found non-compliant in all reviewed medical criteria by a court-appointed doctor after a landmark class-action lawsuit.

“He found that it was non compliant on all eight criteria and concluded that the facility lacked a reliable system to consistently provide adequate healthcare, placing individuals at serious risk of both immediate and long term harm.”
– Colin Chiang, SF Chronicle ([08:52])

• Inhumane Conditions
  • Detainees with chronic/serious conditions (cancer, psychiatric illness) denied necessary care or equipment.

“Alejandro Mediola Escuca said that when he arrived at California City nine months ago, the staff confiscated his prescribed medication and back and knee braces and he said he had to make a makeshift knee brace using his socks just to tolerate the pain.”
– Colin Chiang ([09:45])

• Broader Pattern

  • Similar issues reported at other facilities in dozens of states.
  • Official DHS stance: Detention care is often "the best many aliens have received," but advocates dispute this.

• High Death Rate

  • 33 deaths in ICE detention last year (highest since 2009, excluding the 2020 pandemic); over half found to be preventable by medical review.

“Multiple medical doctors who reviewed those individuals records said that medical care was delayed or missed that could have saved their life.”
– Colin Chiang ([10:52])

---

5. Other Headlines (Quick Hits)

Notable Stories ([11:10]–[13:25])

• Georgia School Shooting Legal Precedent ([11:10])

  • Father of a teenage shooter sentenced for enabling the crime; a rare prosecution for parental responsibility in mass shootings.

• FIFA in Crisis ([11:30])

  • Pushback against President Infantino’s plans to sell World Cup stakes; possible mass European boycott and leadership challenge looming.

• Celebrity Game Show Win ([11:55])

  • Ben Affleck (with Jamie Ding) wins $1 million on “Who Wants to Be a Millionaire?” Final question on presidentially pardoned turkey names.
  • Prize money goes to the Eastern Congo Initiative.

“Final Answer I have such a stomachache right now.”
– Burgess Everett (quoting the nervy moment, [13:16])

• Podcast Recommendation ([13:25])
  • “Apple News in Conversation” interviews New York Times investigator Mike McIntire about the NRA and gun law history.

---

6. Memorable Quotes & Moments

• “We are really putting all of our eggs in the AI basket…” – Courtney Brown ([02:56])
• “I don't think … having a Congress Senate sitting around here for the month of August in quorum calls or having to vote on Democrat amendments is probably a good use of anybody's time.”
  – John Cornyn ([06:45])
• “This medical monitors investigation is the first of its kind in the nation for an ICE detention center…”
  – Colin Chiang ([10:17])
• “Their prize money is going to the Eastern Congo Initiative, a non profit that Affleck helped found.”
  – Gideon Resnick ([13:25])

---

Summary Table of Key Segments & Timestamps

| Segment Topic | Start Time | End Time | |--------------------------------------|------------|-----------| | GDP Slowdown/AI Investment | 00:26 | 03:54 | | Senate GOP Discord/Trump’s Power | 04:08 | 07:36 | | ICE Detention Medical Neglect | 08:09 | 10:52 | | Notable Headlines/Quick Hits | 11:10 | 13:25 | | Memorable Game Show Moment | 13:16 | 13:25 |

---

Takeaway:

This episode offers a nuanced look behind economic headlines, highlights the central but risky role of AI in driving growth, illustrates political fractures within the GOP, exposes systemic failures in ICE healthcare, and closes with a lighter celebrity moment — providing a blend of hard news and human interest stories for listeners wanting insight beyond the day’s headlines.

Transcript

[Gideon Resnick]

Good morning. The U.S. economy sees a surprising slowdown. Axios gets behind the numbers, which paint a complicated picture. Trump's battles with his own party intensify as Senate holdouts block a key ally from confirmation. Semafor talks through the divisions.

[Burgess Everett]

The president's kind of lost his grip over the Senate and there's not a ton that John Doone can do about it at this point.

[Gideon Resnick]

And Ben Affleck delivers a million dollar game show performance. It's Friday 31st. I'm Gideon Resnick in for Shamita Basu. This is Apple News. Today. US Economic growth slowed a little in recent months, surprising economists. GDP between April and June grew at an annual rate of 1.5%. That's compared with 2.1% from the three months before that. Courtney Brown is a senior economics reporter at Axios who's been looking into the Commerce Department's numbers. She told us that in reality, they were a bit better than they looked.

[Courtney Brown]

So look under the hood of the GDP report and you see that underlying growth was actually super strong. And what the headline figure that's kind of Matt is showing is basically distortions in trade and swing in businesses piling up their inventories, things that are a drag on GDP but don't ultimately say anything about the health of the economy.

[Gideon Resnick]

The report follows the Federal Reserve's decision to hold interest rates steady. The new Fed chair, Kevin Warsh said the US Economy was showing, quote, impressive resilience. Inflation remains elevated, and voters appear concerned by affordability, according to polls. Yet, as Brown told us, the latest report tells a more optimistic story for consumer spending, at least from wealthier Americans. Even during heightened uncertainty, the economy was

[Courtney Brown]

in the thick of a ton of geopolitical uncertainty related to the Iran conflict. So it's good to see that the consumer had a little bit of gusto and that helped carry strength in the second quarter.

[Gideon Resnick]

Key to understanding all of this right now is the massive effect of artificial intelligence and the huge investment in infrastructure taking place. The demand is so great that it widened the trade deficit, affecting these latest numbers.

[Courtney Brown]

There's something really interesting happening that we've done some reporting on, which is that with respect to AI, we depend so much on foreign nations to make some of the inputs that are necessary for the AI build out. And so part of the story with the GDP report this quarter was a slew of imports related to the AI buildout weighing on growth.

[Gideon Resnick]

That's not necessarily a bad thing. But as Brown notes, it's another reminder of how important AI has become to the overall direction of travel for the US Economy.

[Courtney Brown]

We are really putting all of our eggs in the AI basket. We are really relying on businesses continuing to spend billions and billions of dollars on building data centers and investing in equipment and software and intellectual property, all the things that drive the AI build out. That's a huge contrib growth this quarter and in previous quarters as well. So I think a skeptic might ask, what if the AI build out slows, tapers off, or you know, something changes in the outlook with respect to AI?

[Gideon Resnick]

Some of those skeptics appeared to be asking that question a little more forcefully recently. The Nasdaq, a stock exchange dominated by tech, approached correction territory this week, suffering a sell off as the market absorbs the risks of chip shortages, profitability and the debt levels associated with AI spending. It remains to be seen how those concerns might affect the economy in the months to come.

[Courtney Brown]

Do those jitters that are in the stock market because the stock market's not the economy right? Do those jitters in the stock market kind of spill over into the real economy in a way that would stunt economic growth in the quarters to come?

[Gideon Resnick]

Jobs data next week could provide more information on where the economy is heading. President Trump Trump's simmering tensions with Republican senators boiled over this week, threatening his Attorney General pick and exposing the dividing priorities between the White House and Capitol Hill. Two key Republicans that are set to leave the Senate in January withheld their support for acting AG Todd Blanch, leading Trump to suggest that he might abandon the confirmation process, at least for now. The role has become key to Trump's second term agenda, and he was eager to formally install his former lawyer. Senators John Cornyn and Thom Tillis said they wouldn't back blanche because of the lawsuit settlement that Trump breached with the irs, which shields him and his family from future audits. Cornyn wants the terms pared back, and he also wants it in writing that the controversial anti weaponization fund the DOJ eventually abandoned is definitely gone for good. Here's what he told Ms. Now on

[John Cornyn]

I am prepared to vote no. This is about making sure that even if you're the President of the United States, you don't get favorable terms from the government and a settlement of a lawsuit that ordinary citizens would not get, like protection from audits by the IRS into the foreseeable future.

[Gideon Resnick]

It's the latest sign of a growing rupture between Republicans on the Hill and the White House. Senate Majority Leader John Thune wants to be able to send his caucus home for an upcoming August recess, in part to allow them to campaign and defend their majority. He has a number of priorities for GOP members, but Trump is pressuring him to pass the Save America Act, a sweeping federal overhaul of the way American elections are run.

[Burgess Everett]

It boils down fundamentally to a case of math. And when I say that, I mean there aren't the votes to do this voter ID and more bill that the president wants.

[Gideon Resnick]

Burgess Everett is the congressional bureau chief for Semaphore.

[Burgess Everett]

There's two ways to pass a bill. You could either get 60 votes, which would require at least seven Democrats, but probably more because some Republicans oppose this bill, or you could kill the filibuster, which you would need 50 votes to do, and they don't have the votes to do either those things. But it's become less about the policy and more about the politics. It's a wedge issue in the Senate, and some people that are pushing it are in President Trump's ear. So it's become a little bit of a shirts and skins exercise. Are you on the president's side or not?

[Gideon Resnick]

Those allies of the White House are beginning to push for canceling the recess to get this bill passed. But earlier this week, Thune expressed doubt about that working.

[John Cornyn]

If, in fact, staying here for the month of August means that we assume at some point there will be 10 Democrats who cross over and vote for the State of America Act. I think we can stay here till Christmas, but I don't think, you know, having a Congress Senate sitting around here for the month of August in quorum calls or having to vote on Democrat amendments is probably a good use of anybody's time.

[Gideon Resnick]

The trouble is that keeping senators in town also keeps them away from the campaign trail and the ability to talk to voters and counter their opponents.

[Burgess Everett]

That could be a problem for Republicans. And so, you know, I think traditionally, you want your candidates home as much as you can before the midterm election if you're not able to pass any more substantive legislation, which at the moment does not look possible.

[Gideon Resnick]

Everett said the scenario is illustrative of the limit of Trump's power in the Senate, especially compared to the House.

[Burgess Everett]

You don't have 50 votes for whatever Trump wants. And so that's different than the House, because every time it looks like that's the case where the House doesn't have the votes to pass legislation, Trump can get on the phone, work with Mike Johnson, and they jam it through. You just can't do that in the Senate. He's alienated a bunch of senators, either by ousting them in primaries, forcing them into retirement or otherwise ignoring their policy wants and their form of politics.

[Gideon Resnick]

The largest ICE detention center in California came under heavy scrutiny this week after a court mandated report revealed widespread medical failings across the board. The center is northeast of LA and holds around 1600 people a day. Colin Chiang is a reporter with the San Francisco Chronicle.

[Colin Chiang]

This is a pretty big deal because California City holds a number of people who have serious medical conditions, including people with active cancer and serious psychiatric illnesses.

[Gideon Resnick]

A federal judge sent in a physician to review the center as part of a class action lawsuit filed by seven people who described inhumane conditions and medical neglect at the facility. The review is the first of its kind for an ICE detention center.

[Colin Chiang]

He found that it was non compliant on all eight criteria and concluded that the facility lacked a reliable system to consistently provide adequate healthcare, placing individuals at serious risk of both immediate and long term harm.

[Gideon Resnick]

Chiang writes that unlike prisons, detention centers are not designed to be punitive, but a form of civil detention that ensures compliance while a case is processed. The report follows an investigation by the Associated Press and KFF Health News, which found hundreds of detainees across at least 33 states alleging immigration detention facilities are failing to provide adequate medical care.

[Colin Chiang]

The DHS spokesperson who responded to this report stated something which DHS often says, which is this is the best health care many aliens have received in their entire lives.

[Gideon Resnick]

But one California plaintiff described conditions as a living nightmare.

[Colin Chiang]

Alejandro Mediola Escuca said that when he arrived at California City nine months ago, the staff confiscated his prescribed medication and back and knee braces and he said he had to make a makeshift knee brace using his socks just to tolerate the pain.

[Gideon Resnick]

The physician in charge of the investigation found that chronic diseases were not identified at intake or referred to doctors for ongoing care and reliable access to language interpretation was not available. He also found that the facility's infectious disease and prevention system fell short.

[Colin Chiang]

This medical monitors investigation is the first of its kind in the nation for an ICE detention center to have been investigated by a court appointed medical doctor. And so it's something to watch in terms of what implications this lawsuit might have in the coming weeks and months.

[Gideon Resnick]

With the exception of the 2020 pandemic, the death rate for people in ICE detention last year was the highest since 2009. 33 deaths were reported and a separate San Francisco Chronicle investigation found that at least 17 deaths had occurred since the start of 2025 were preventable.

[Colin Chiang]

Multiple medical doctors who reviewed those individuals records said that medical care was delayed or missed that could have saved their life.

[Gideon Resnick]

Here are a few other stories we're following today. The father of a teenager who fatally shot four people at his Georgia high school was sentenced to 15 years in prison on Thursday. Colin Gray was convicted of murder and involuntary manslaughter in March as prosecutors argued that he bore some responsibility for the shooting. After buying his son a rifle, he was accused of ignoring his son Colt's mental health issues and alleged obsession with school shooters. Colt Gray was sentenced to life in prison earlier this week. The prosecution of his father is the first of its kind in Georgia and only the second in the country. FIFA's President Gianni Infantino is facing the biggest revolt of his tenure over attempts to sell a stake in the World cup to private equity. Now this year's winner, Spain, might not even show up to the next tournament after European countries agreed to a mass boycott. And the body that oversees north and Central America and the Caribbean has added its own pressure, saying it's deeply concerned as well. Infantino has given FIFA's 211 association members until mid September to back his deal. They face a tough choice. If they say no, they turn down a big financial boost promised by Infantino. But a World cup without the likes of England, Germany and France would be a major problem. Infantino had been considered untouchable, but the backlash has been so severe that there are reports of European soccer officials lining someone up to challenge him next year in the form of Nasser al Khalifi, the president of France's Paris Saint Germain. The next World cup is the women's tournament in Brazil next year, with qualifiers set to begin in just a few months. And finally, for a million dollars, here's your question. In an annual Thanksgiving tradition, all but which of these have been the names of turkeys pardoned by a US President? That was the final question for Ben Affleck and his Jeopardy winning partner Jamie Ding on who Wants to Be a Millionaire now. If you were wondering, the choices were peanut butter and jelly, Tater and tot, Mac and cheese, spaghetti and meatball. They had to phone a friend, but in the end decided to take something of a punt D spaghetti and meatball

[Burgess Everett]

Final Answer I have such a stomachache right now.

[Gideon Resnick]

Their prize money is going to the Eastern Congo Initiative, a non profit that Aflac helped found. In addition to the money, Affleck also has some bragging rights now for a friend of his. Matt Damon won on the show as well, similarly relying on his own Jeopardy. Whiz Ken Jennings to help him. You can find all these stories and more in the Apple News app and if you're already listening to the news app right now, stick around for the latest episode of Apple News in Conversation this week, guest host David Green sat down with Mike McIntyre, an investigative reporter at the New York Times, to talk about his new book on the little known origins of America's Gun obsession. He explains how the NRA reshaped US Gun laws, thanks in part to the decades long efforts of an unlikely ally from the Democratic Party. He was a liberal Democrat. He was a liberal warrior on issues like health care and labor, education, environment. But on this one thing, he was very much out of step with the rest of his party most of the time. If you're listening in the podcast app, you can follow Apple News in Conversation to find that episode. Enjoy the weekend and I'll be back with the news on Monday.