After Israel threatened to cut ties between Israeli and Palestinian banks, Treasury Secretary Yellen warned it could worsen the humanitarian crisis in Gaza and create economic instability in the West Bank. We’ll also explain one reason why U.S. military spending is so high, get updates on the AI economy’s hot shot, Nvidia, and the U.S. government’s battle against Big Ticket.

Here’s everything we talked about today:

• • “Yellen Warns Israel Against Cutting off Palestinian Banks” from The New York Times
  • “Yellen concerned about Israel’s threats to cut off Palestinian banks” from Reuters
  • VIDEO: “VIRAL MOMENT: Michael Waltz Confronts Air Force Officials With Staggeringly Expensive Components” from Forbes Breaking News
  • “Pentagon falling victim to price gouging by military contractors” from CBS News
  • “New Bipartisan Bill Allows Military Contractors To Fleece Taxpayers” from The Lever
  • “Nvidia dominates in AI, but others are trying to chip away” from Marketplace
  • “US sues to break up Ticketmaster and Live Nation in a groundbreaking monopoly lawsuit” from CNN Business

Join us tomorrow for Economics on Tap! The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern. We’ll have news, drinks and play a round of Half Full/Ha