Politics
Fed lowers interest rates again but dials back plans for more cuts in the future
WASHINGTON — The Federal Reserve on Wednesday made another cut in interest rates, but dialed back expectations for lowering rates in the near future.
The rate reduction, the third in a row, had been widely expected, but where policymakers go from here is anything but certain.
Plans for several more rate cuts in 2025 have become muddied as progress the Fed made on curbing inflation has stalled and uncertainties abound about what impact the incoming Trump administration will have on the economy.
The Fed’s new quarter-point rate reduction, coming out of its last policy-setting meeting of the year, will give consumers a bit more relief on interest payments for credit cards, home equity lines and some other personal loans.
The cumulative effects of the three rate cuts since September, totaling a full percentage point, are more meaningful and could help households that are stretched financially. More Californians have fallen behind in making debt payments this year, with delinquency rates on credit cards and auto loans rising especially for millennials (ages 28-43), according to the California Policy Lab at UC Berkeley.
The Fed’s recent rate cuts, however, haven’t done a whole lot for potential homebuyers and sellers. The 30-year fixed mortgage rate, while ticking down a little this month, most recently stood at 6.6% last Thursday — which is actually up from about 6% in mid-September, according to Freddie Mac. And analysts don’t see mortgage rates coming down significantly in the near term.
While Wednesday’s rate cut was expected — futures markets gave it a 95% probability before the announcement — the view ahead is clouded by uncertainty over what President-elect Trump might do, on trade as well as fiscal policy.
Trump has talked about cuts in taxes and regulations, which would likely stimulate economic activity. But he also has proposed tariffs on all imports and even higher levies on Chinese goods, which most analysts see as inflationary and a hit to economic growth.
Whether Trump will go through with his tariff threats, and if so, when and by how much, remain highly uncertain.
Beyond questions about the new administration’s intentions, Fed policymakers already had reason to slow their rate-cut plans. The American economy and jobs, while slowing a bit, have kept growing at a solid pace.
At the same time, consumer price inflation, which reached near double digits in the summer of 2022, has recently stopped trending down toward the Fed’s 2% target. Inflation edged up a notch in November, with prices rising 2.7% from a year earlier as consumers paid more for used cars and airline fares, but also staple items like medical care and foods purchased for home. Rising grocery prices, in particular, have gnawed at consumer sentiments, and were seen as a key factor in Trump’s victory in November.
“I think for lower- and moderate-income households, the budgetary battle continues, month in and month out,” said Greg McBride, chief financial analyst at Bankrate.com. “Inflation on everyday necessities continues to be an issue.”
In September, the Fed began its latest rate-cutting scheme by making a big half-point reduction, followed by two quarter-point moves. And based on the trajectory of inflation then, it had forecast four more smaller cuts next year.
But on Wednesday, the Fed’s updated projections showed officials expecting just two quarter-point cuts in 2025 and another two the following year. And analysts say policymakers are likely to pause at their next rate-setting meeting in January.
In their latest projections, most Fed officials said the U.S. economy would grow 2.1% next year, compared with 2.5% this year, which is up significantly from its previous September forecast. They see their preferred measure of core inflation as ending the year at 2.8% and at 2.5% in 2025. The nation’s unemployment rate, which was 4.2% in November, is expected to rise to 4.3% around this time next year.
Wednesday’s announcement takes the Fed benchmark interest rate down to a range of 4.25% to 4.5%. That’s a full percentage point lower than it was in September, but is still considered above the so-called neutral rate that’s neither stimulative nor restrictive for the economy.
Politics
Video: Supreme Court May Allow States to Bar Transgender Athletes
new video loaded: Supreme Court May Allow States to Bar Transgender Athletes
transcript
transcript
Supreme Court May Allow States to Bar Transgender Athletes
The Supreme Court heard two cases from West Virginia and Idaho on Tuesday. Both concerned barring the participation of transgender athletes in girls’ and women’s sports teams.
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“It is undisputed that states may separate their sports teams based on sex in light of the real biological differences between males and females. States may equally apply that valid sex-based rule to biological males who self-identify as female. Denying a special accommodation to trans-identifying individuals does not discriminate on the basis of sex or gender identity or deny equal protection.” “West Virginia argues that to protect these opportunities for cisgender girls, it has to deny them to B.P.J. But Title IX and the Equal Protection Clause protect everyone. And if the evidence shows there are no relevant physiological differences between B.P.J. and other girls, then there’s no basis to exclude her.” “Given that half the states are allowing it, allowing transgender girls and women to participate, about half are not, why would we at this point, just the role of this court, jump in and try to constitutionalize a rule for the whole country while there’s still, as you say, uncertainty and debate, while there’s still strong interest in other side?” “This court has held in cases like V.M.I. that in general, classification based on sex is impermissible because in general, men and women are simply situated. Where that’s not true is for the sorts of real, enduring, obvious differences that this court talked about in cases like V.M.I., the differences in reproductive biology. I don’t think the pseudoscience you’re suggesting has been baked.” “Well, it’s not pseudo. It’s good science.” “It’s not pseudoscience to say boys’ brain development happens at a different stage than girls does.” “Well, with all respect, I don’t think there’s any science anywhere that is suggested that these intellectual differences are traceable to biological differences.” “Can we avoid your whole similarly situated argument that you run because I don’t really like it that much either? And I’m not trying to prejudice anyone making that argument later. But I mean, I think it opens a huge can of worms that maybe we don’t need to get into here.”
By Meg Felling
January 13, 2026
Politics
Venezuela releases multiple American citizens from prison following military operation
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The interim government in Venezuela has released at least four U.S. citizens who were imprisoned under President Nicolás Maduro’s regime, Fox News confirmed.
The release marks the first known release of Americans in the South American country since the U.S. military completed an operation to capture authoritarian Venezuelan President Nicolás Maduro, who is now facing federal drug trafficking charges in New York.
“We welcome the release of detained Americans in Venezuela,” a State Department official said Tuesday. “This is an important step in the right direction by the interim authorities.”
The release of American citizens was first reported by Bloomberg.
TRUMP SIGNS ORDER TO PROTECT VENEZUELA OIL REVENUE HELD IN US ACCOUNTS
Venezuelans celebrate after U.S. President Donald Trump announced that Venezuelan President Nicolás Maduro had been captured and flown out of the country in Santiago, Chile, Saturday, Jan. 3, 2026. (Esteban Felix/AP Photo)
President Donald Trump said Saturday that Venezuela had begun releasing political prisoners.
“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners,” Trump wrote on Truth Social. “Thank you! I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”
Venezuela’s interim government has reported that 116 prisoners have been released, although only about 70 have been verified by the non-governmental organization Justicia, Encuentro y Perdón, according to Bloomberg.
National Assembly President Jorge Rodríguez said prisoner releases would continue, according to the outlet.
TRUMP ADMINISTRATION FILES SEIZURE WARRANTS TARGETING SHIPS TIED TO VENEZUELAN OIL TRADE: REPORT
Nicolás Maduro is seen in handcuffs after landing at a Manhattan helipad, escorted by heavily armed federal agents as they make their way into an armored car en route to a Federal courthouse in Manhattan on January 5, 2026, in New York City (XNY/Star Max/GC Images via Getty Images)
The U.S. government issued a new security alert Saturday urging Americans in Venezuela to leave the country immediately, citing security concerns and limited ability to provide emergency assistance, the U.S. Embassy in Caracas said.
“U.S. citizens in Venezuela should leave the country immediately,” the embassy said in the alert.
The warning pointed to reports of armed groups operating on Venezuelan roads.
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Venezuelan citizens in Cucuta, Colombia celebrate during a rally on the Colombia-Venezuela border after the confirmation of Nicolás Maduro’s capture in Caracas, on January 3, 2026. (Jair F. Coll/Getty Images)
Following the military operation, Trump suggested that the U.S. would “run” Venezuela for an extended period.
“We’re going to run the country until such time as we can do a safe, proper and judicious transition,” he said.
Politics
Lawsuits against ICE agents would be allowed under proposed California law
SACRAMENTO — A week after a Minnesota woman was fatally shot by a federal immigration officer, California legislators moved forward a bill that would make it easier for people to sue federal agents if they believe their constitutional rights were violated.
A Senate committee passed Senate Bill 747 by Sen. Scott Wiener (D-San Francisco), which would provide Californians with a stronger ability to take legal action against federal law enforcement agents over excessive use of force, unlawful home searches, interfering with a right to protest and other violations.
California law already allows such suits against state and local law enforcement officials.
Successful civil suits against federal officers over constitutional rights are less common.
Wiener, appearing before Tuesday’s Senate Judiciary Committee hearing, said his bill has taken on new urgency in the wake of the death of Renee Nicole Good in Minnesota, the 37-year-old mother of three who was shot while driving on a snowy Minneapolis street.
Good was shot by an agent in self-defense, said Department of Homeland Security Secretary Kristi Noem, who alleged that Good tried to use her car as a weapon to run over the immigration officer.
Good’s death outraged Democratic leaders across the country, who accuse federal officers of flouting laws in their efforts to deport thousands of undocumented immigrants. In New York, legislators are proposing legislation similar to the one proposed by Wiener that would allow state-level civil actions against federal officers.
George Retes Jr., a U.S. citizen and Army veteran who was kept in federal custody for three days in July, described his ordeal at Tuesday’s committee hearing, and how immigration officers swarmed him during a raid in Camarillo.
Retes, a contracted security guard at the farm that was raided, said he was brought to Port Hueneme Naval Base. Officials swabbed his cheek to obtain DNA, and then moved him to Metropolitan Detention Center in Los Angeles. He was not allowed to make a phone call or see an attorney, he said.
“I did not resist, I did not impede or assault any agent,” Retes said.”What happened to me that day was not a misunderstanding. It was a violation of the Constitution by the very people sworn to uphold it.”
He also accused Department of Homeland security spokesperson Tricia McLaughlin of spreading false information about him to justify his detention. DHS said in a statement last year that Retes impeded their operation, which he denies.
Retes has filed a tort claim against the U.S. government, a process that is rarely successful, said his attorney, Anya Bidwell.
Lawsuits can also be brought through the Bivens doctrine, which refers to the 1971 Supreme Court ruling Bivens vs. Six Unknown Federal Agents that established that federal officials can be sued for monetary damages for constitutional violations. But in recent decades, the Supreme Court has repeatedly restricted the ability to sue under Bivens.
Wiener’s bill, if passed by the legislature and signed by Gov. Gavin Newsom, would be retroactive to March 2025.
“We’ve had enough of this terror campaign in our communities by ICE,” said Wiener at a news conference before the hearing. “We need the rule of law and we need accountability.”
Weiner is running for the congressional seat held by former House Speaker Rep. Nancy Pelosi (D-San Francisco).
Representatives for law enforcement agencies appeared at Tuesday’s hearing to ask for amendments to ensure that the bill wouldn’t lead to weakened protections for state and local officials.
“We’re not opposed to the intent of the bill. We’re just concerned about the future and the unintended consequences for your California employees,” said David Mastagni, speaking on behalf of the Peace Officers Research Assn. of California, which represents more than 85,000 public safety members.
Wiener’s bill is the latest effort by the state Legislature to challenge President Trump’s immigration raids. Newsom last year signed legislation authored by Wiener that prohibits law enforcement officials, including federal immigration agents, from wearing masks, with some exceptions.
The U.S. Department of Justice sued last year to block the law, and a hearing in the case is scheduled for Wednesday.
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