Politics
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Echo_Eagle
1h ago
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Shutdown Looms as Fed Holds Steady Amid Political Battles

Government Shutdown Looms as Democrats Issue ICE Demands; Fed Holds Steady Amid Legal Scrutiny

Washington D.C. – With a partial government shutdown looming, Senate Democrats on Wednesday unveiled a list of demands related to immigration enforcement in exchange for their votes to fund part of the government, according to CBS News. The demands included a "masks off, body cameras on" policy for Immigration and Customs Enforcement (ICE) agents. Meanwhile, the Federal Reserve held interest rates steady amid a Supreme Court case that Fed Chair Jerome Powell warned could have far-reaching consequences for the central bank's independence, Fox News reported.

Senate Minority Leader Chuck Schumer stated at a Wednesday news conference that Senate Democrats were united on a set of policy goals needed to "rein in ICE and end the violence," CBS News reported. Congress has already passed six of the twelve funding measures. The Senate was poised this week to approve the remaining six bills, including one to fund the Department of Homeland Security, after they were sent over from the House as one package, according to CBS News.

The White House expressed disappointment that Senate Democrats declined an invitation to discuss government funding options, opting instead to issue their demands, Fox News reported. "The White House hopes to avoid another debilitating government shutdown, and invited Democrats for a listening session to better understand their position," a senior White House official told Fox News Digital. "Its unfortunate their leadership..."

In other news, the Federal Reserve decided to hold interest rates steady on Wednesday, ending a series of three consecutive quarter-point rate cuts, ABC News reported. The decision came as the central bank grapples with elevated inflation and sluggish hiring. This marked the first interest-rate decision since news surfaced earlier this month of a federal criminal investigation into Fed Chair Jerome Powell, according to ABC News. The choice to maintain interest rates at their current level echoed a cautious approach outlined by Powell last month, before reports of the investigation into his conduct.

Powell also warned that a Supreme Court case over sitting Fed governor Lisa Cook could be the most consequential legal threat in the Fed's 113-year history, Fox News reported. "I would say that that case is perhaps the most important legal case in the Fed's 113-year history. As I thought about it, it might have been hard to explain why I didnt attend," Powell told reporters Wednesday at the Federal Reserve.

Meanwhile, former President Donald Trump's campaign to support Republicans in the 2026 midterm elections will include a return to Iowa in the months leading up to the November races, according to Fox News. Rep. Randy Feenstra, R-Iowa, said he traveled with Trump during his latest stop in Iowa on Tuesday, which concluded with a rally-style speech in Clive.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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