U.S. ECONOMY HOLDS FIRM—BUT RISKS LOOM The U.S. economy has largely shrugged off geopolitical tensions so far, but Barclays warns the resilience may not last. Q1 growth is tracking around 2.3%, supported by government spending and strong AI-related investment. However, consumer spending remains weak. Barclays expects moderate growth ahead and larger budget deficits to help cushion demand. The Fed is likely to hold rates near term, with gradual cuts starting in late 2026. Still, prolonged geopolitical strain could test the economy’s durability.(*Walter Bloomberg)