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Federal Reserve Holds Interest Rates Steady Amidst Investigations, While Tensions Rise Globally
Washington D.C. – The Federal Reserve held interest rates steady on Wednesday, ending a series of three consecutive quarter-point rate cuts as it navigates elevated inflation and sluggish hiring, according to ABC News. The decision coincided with escalating tensions both domestically and internationally, including an FBI search of a Georgia election site and rising tensions between the U.S. and Iran.
The Fed's move to maintain interest rates at their current level reflected a cautious approach previously outlined by Fed Chair Jerome Powell, ABC News reported. This decision marks the first interest-rate decision since news surfaced earlier this month of a federal criminal investigation into Powell's conduct. President Trump has repeatedly urged the Fed to significantly lower interest rates.
Meanwhile, in Georgia, the FBI executed a search warrant at the Fulton County Elections Hub and Operations Center on Wednesday, seizing original 2020 voting records, according to ABC News. Fulton County officials expressed alarm at the development. The FBI confirmed they were conducting court-authorized activity at the facility. This action follows repeated claims by President Trump of voter fraud in Georgia during the 2020 election, which state officials have audited and certified.
Internationally, tensions between the U.S. and Iran have intensified. President Trump warned Iran that "time is running out" to negotiate a deal on its nuclear program, BBC World reported. This warning came as the U.S. military builds up its presence in the Gulf, deploying what Trump described as a "massive Armada" moving with "great power, enthusiasm, and purpose." In response, Iranian Foreign Minister Abbas Araghchi stated that Iran's armed forces were prepared to "immediately and powerfully respond" to any aggression, according to BBC World.
Adding to the global complexities, Iran has been experiencing significant internet disruptions. While some of Iran's 92 million citizens are beginning to regain internet access, the restoration appears to be tightly controlled, BBC World reported. The country initially cut off internet access on January 8, a move widely seen as an attempt to suppress information about a government crackdown on protesters. Araghchi claimed the internet was blocked in response to "terrorist operations."
Domestically, political tensions also flared regarding alleged inaction by Evanston, Illinois Mayor Daniel Biss regarding anti-Israel protests at Northwestern University. According to Fox News, House Education and Workforce Committee Chairman Tim Walberg, R-Mich., sent a letter to Biss requesting him to address alleged inaction about encampments set up by anti-Israel agitators amid the conflict in Gaza. Walberg stated that a briefing would aid the Committee in considering potential legislative changes. Education Secretary Linda McMahon stated that Trump won't tolerate antisemitism on campus.
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