US & Canada

United States President Donald Trump has nominated former Federal Reserve Governor Kevin Warsh to head the US central bank when current Federal Reserve Chair Jerome Powell’s term ends in May.

The announcement on Friday caps a months-long, highly publicised search for a new chair of the Federal Reserve, widely regarded as one of the most influential economic officials in the world.

It comes amid Trump’s public pressure campaign on Powell, whom he appointed during his first term but has repeatedly condemned for not cutting interest rates at the pace the president would like.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump posted on his Truth Social site. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

The statement referenced the apparent compromise Warsh represents. The 55-year-old is known to be in Trump’s orbit and has recently called for lower interest rates, although he is expected to stop short of the more aggressive easing associated with some other potential candidates for the job.

Still, he is expected to face a punishing Senate confirmation hearing, with US lawmakers likely to be particularly critical given Trump’s public comments and the Department of Justice’s decision earlier this month to open a criminal probe into Powell.

Critics, including Powell, have said Trump’s actions seek to undermine the Federal Reserve’s independence and pressure the agency to set monetary policy aligned with the president’s wishes.

What does the Federal Reserve do?

The Federal Reserve has long been seen as a stabilising force in global financial markets, due in part to its perceived independence from politics.

The Federal Reserve is tasked with combating inflation in the United States while also supporting maximum employment. It is also the nation’s top banking regulator.

The agency’s rate decisions over time influence borrowing costs throughout the economy, including for mortgages, car loans and credit cards.

In a statement, Senator Elizabeth Warren, the top Democrat on the US Senate Banking Committee, said, “This nomination is the latest step in Trump’s attempt to seize control of the Fed.”

She pointed to the investigation into Powell, as well as Trump’s effort to push out Fed Governor Lisa Cook, which is currently being challenged before the US Supreme Court.

“No Republican purporting to care about Fed independence should agree to move forward with this nomination until Trump drops his witch-hunt,” Warren said.

Republican Senator Thom Tillis, meanwhile, said he would not vote to confirm any nominee until the Department of Justice probe into Powell is ended.

“Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” he said in a statement.

Still, some Republicans welcomed the nomination.

“No one is better suited to steer the Fed and refocus our central bank on its core statutory mandate,” Republican Senator Bill Hagerty said in a statement.

If Warsh is confirmed, it remains unclear if Powell would immediately step down or finish out his term. Traditionally, Federal Reserve Chairs step aside as soon as their replacement is appointed, but the political situation has led to speculation Powell could stay on as long as possible.

Who is Warsh?

Warsh is currently a fellow at the right-leaning Hoover Institution and a lecturer at the Stanford Graduate School of Business.

He was a member of the Federal Reserve’s board from 2006 to 2011 and became the youngest Federal Reserve Governor in history when he was appointed at age 35.

He was an economic aide in George W Bush’s Republican administration and was an investment banker at Morgan Stanley. His father-in-law is Ronald Lauder, heir to the Estee Lauder cosmetics fortune and a longtime donor and confidant of Trump’s.

Warsh has historically supported higher interest rates to control inflation, but has more recently argued for lower rates.

He has been a vocal critic of current Federal Reserve leadership, calling for “regime change” and criticising Powell for engaging on issues like climate change, which Warsh has said are outside the role’s mandate.

Reporting from Washington, DC, Al Jazeera’s Kimberly Halkett said Warsh’s experience means his appointment will likely be well received by the markets.

“The consensus is that in the short term, yes, this is a nominee who will do what the president has asked,” she said.

“But what he could do long term as chair of the board is very similar, ironically, to what Jerome Powell, the current board chair, is doing right now,” she said.

“That is having independence – making decisions based on economic data and not necessarily on political whims of a president.”

United Nations chief Antonio Guterres appears to point at Trump as critics say his ‘Board of Peace’ aims to replace UN.

United Nations Secretary-General Antonio Guterres has warned that international “cooperation is eroding” in the world, during a media briefing where he took aim at one – maybe two – powerful countries undermining efforts to solve global problems collectively.

In his annual address as secretary-general, where he outlined priorities for the UN, Guterres said on Thursday that the world body stood ready to help members do more to address their most pressing issues, including the climate catastrophe, inequality, conflict and the rising influence of technology companies.

But he warned that “global problems will not be solved by one power calling the shots,” in apparent reference to United States President Donald Trump’s administration and his moves to abandon much of the UN system, while also impelling countries to join his newly-created “Board of Peace”.

Guterres went on to say that “two powers” would also not solve key problems by “carving the world into rival spheres of influence”, in what appeared to be a reference to China and its growing role in global affairs.

Guterres, who will step down from his position at the end of the year, underscored the UN’s ongoing commitment to international law amid concerns that treaties, which countries have abided by for decades, are coming undone.

Amid Israel’s genocidal war on Gaza and the brazen abduction of Venezuela’s President Nicolas Maduro by US forces, the UN chief warned that international law is being “trampled” and “multilateral institutions are under assault on many fronts.”

But, he added, the UN was still “pushing for peace – just and sustainable peace rooted in international law”.

Beginning in his first term as US President, Trump sought to end his country’s formal participation in many aspects of the UN system, while also eager to wield influence over key decision-making bodies, including through the use of the US veto in the UN’s powerful Security Council.

Trump’s current administration has also imposed sanctions on UN Special Rapporteur for Palestine Francesca Albanese and threatened to sanction negotiators involved in UN talks on shipping pollution at the International Maritime Organization.

The US leader’s actions have drawn criticism.

Brazilian President Luiz Inacio “Lula” da Silva earlier this month accused Trump of wanting to create “a new UN”.

Lula made his comment just days after Trump launched his “Board of Peace” initiative at the World Economic Forum in Davos, Switzerland.

While more than two dozen countries in the Middle East, Africa, Asia, Latin America and Europe have signed up as founding members of the peace board, several major nations, including France, have turned down invitations to join, and Canada has been excluded.

France said the Trump-led peace board “goes beyond the framework of Gaza and raises serious questions, in particular with respect to the principles and structure of the United Nations, which cannot be called into question”.

Numerous US military assets in the Gulf region are ‘within the range of our medium-range missiles’, Iran’s military spokesman warns.

Canadian Prime Minister Mark Carney has hailed several new trade agreements, pledging to further diversify Ottawa’s partners while saying he “expects” the United States to respect his country’s sovereignty.

Carney discussed the trade deals during a meeting on Thursday with provincial and territorial leaders.

“Our country is more united, ambitious and determined than it has been in decades, and it’s incumbent on all of us to seize this moment, build big things together,” Carney said, as he hailed 12 new economic and security accords reached over the last six months.

His comments come amid ongoing frictions with the administration of US President Donald Trump, which has previously pushed to make Canada a “51st state”.

Carney highlighted in particular a new agreement with China to lower trade levies. That deal prompted a rebuke last week from Trump, who threatened to impose a 100 percent tariff on Canada.

In the face of Trump’s accusations that Canada would serve as a “drop-off port” for Chinese goods, Carney clarified that Ottawa was not seeking a free-trade agreement with Beijing.

But on Thursday, he nevertheless played up the perks he said the agreement would offer to Canada’s agriculture sector.

“Part of that agreement unlocks more than $7bn in export markets for Canadian farmers, ranchers, fish harvesters and workers across our country,” Carney said.

Carney added that Ottawa would soon seek to advance “trading relationships with global giants” including India, the Association of Southeast Asian Nations (ASEAN), and the South American trade bloc Mercosur.

“And we will work to renew our most important economic and security relationship with the United States through the joint review of the Canada-United States-Mexico agreement later this year,” he said, referring to the regional free trade agreement, which expires in July.

‘Respect Canadian sovereignty’

Carney’s pledge to diversify Canada’s portfolio of trade and security partners comes just eight days after he delivered an attention-grabbing speech at the World Economic Forum in Davos, Switzerland.

During the address, Carney warned that the “rules-based” international order was a fiction that was fading, replaced by “an era of great power rivalry”, where might makes right.

“We knew the story of the international rules-based order was partially false, that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically,” Carney told the audience in Davos.

“We knew that international law applied with varying rigour depending on the identity of the accused or the victim.”

He ultimately called for the so-called “middle powers” of the world to rally together in these unpredictable times.

The speech was widely seen as a rebuke to Trump, who has launched an aggressive tariff campaign on global trading partners, including Canada.

In early January, Trump also abducted the leader of Venezuela, Nicolas Maduro, in what critics describe as a violation of international law.

His pledge to “run” Venezuela was followed by a series of aggressive statements towards the self-governing Danish territory of Greenland, which he threatened to seize.

Those threats have sent shudders through the NATO alliance, which counts both the US and Denmark as members.

Since before the start of his second term, Trump has also pushed to expand US control into Canada, repeatedly calling the country a “state” and its prime minister a “governor”.

In response to Carney’s speech at Davos, Trump withdrew Carney’s invitation to join his so-called Board of Peace.

Carney, however, has publicly stood by his statements, dismissing US Treasury Secretary Scott Bessent’s claims that he “aggressively” walked back his position during a private call with Trump.

In a separate exchange on Thursday, Carney was asked about reports that US officials had met with separatists seeking independence for the oil-wealthy province of Alberta.

The Financial Times reported that State Department officials have held three meetings ​with the Alberta Prosperity Project, a group that pushes for a referendum on whether the energy-producing western province should break away from Canada.

“We expect the US administration to respect Canadian sovereignty,” Carney replied.

“I’m always clear in my conversations with President Trump to that effect.”

Aaron Jones was one of the key US performers at the 2024 T20 World Cup but will now miss the 2026 edition.

United States batter Aaron Jones ‍has ‍been provisionally suspended after being charged with five breaches of the International Cricket Council (ICC) ⁠anticorruption code, the governing body says.

The 31-year-old has ‍14 days to respond to the charges, which relate mostly to his ‍participation in ⁠the 2023-2024 Bim10 tournament in Barbados, while two of the charges relate to international cricket, the ICC said.

USA Cricket did not immediately ​respond to a request ‌for comment outside normal business hours.

The ICC accused Jones of fixing, trying to fix or influencing Bim10 matches; refusing or failing to cooperate with an investigation; obstructing the inquiry; and failing to disclose attempts to violate the Cricket West Indies anticorruption code.

“These charges are part of a wider investigation which is likely to result in further charges being issued against other participants in due course,” the ICC said in a statement on Wednesday.

Jones was part of an 18-member US squad training ‌in Sri Lanka in preparation for ‌the T20 World Cup, ⁠scheduled from February 7 to March 8 in India and Sri Lanka.

The US ‌has yet to announce its squad for the tournament, and Jones is now ‍ineligible for selection.

Jones was a star of the 2024 edition, which was cohosted by the US, which were also debuting at a major cricket tournament.

He was an integral part of the team that beat Pakistan in what is regarded as the greatest cricketing upset of all time, scoring 11 runs in the super-over victory.

Jones also hit an unbeaten 94 in the seven-wicket win against Canada, which included hitting the winning runs to produce one of the iconic images of the tournament.

Born in New York, Jones rose to prominence with Barbados – and hit a half-century in his first-class debut in 2017 – but switched to the nation of his birth, making his international debut in 2018.

White House “Border Czar” Tom Homan said federal immigration agents will conduct “targeted” rather than sweeping operations in Minnesota going forward. Homan is replacing controversial “commander at large” Gregory Bovino as head of operations in the state.

The US has intensified threats against Iran if it doesn’t agree to its demands, as Trump says a ‘massive armada’ is amassing in the region. Al Jazeera’s Virginia Pietromarchi answers key questions on the latest escalation.

Published On 29 Jan 202629 Jan 2026

Click here to share on social media

Share

Two US federal agents involved in the fatal shooting of intensive care nurse Alex Pretti during an immigration raid in Minneapolis have been placed on administrative leave, as fallout from the most recent killing of a US citizen continues to cause outrage. Al Jazeera’s Manuel Rapalo explains.

It was built on democracy, open markets and cooperation – with America at the helm.

But the rules-based global order created after World War II is now under strain. Conflicts are rising. International rules are being tested. Trade tensions are escalating. And alliances are shifting.

At the centre of it all is US President Donald Trump.

In just a few short weeks, he’s captured Venezuela’s president, vowed to take control of Greenland, and threatened to slap tariffs on those who oppose him.

Meanwhile, China is presenting itself as a stable partner.

Many warn that the global order is starting to break apart.

China has told the UN Security Council that US ‘military adventurism’ in the Middle East will push the region into chaos, as President Donald Trump continues to threaten strikes on Iran if it does not submit to his demands.

Emmy-winning Owda points to changes in TikTok’s US ownership, remarks from Israel’s Benjamin Netanyahu to explain ban.

Award-winning Palestinian journalist Bisan Owda has said she has been permanently banned from TikTok, days after the social media platform was acquired by new investors in the United States.

Owda, an Emmy Award-winning journalist and contributor to Al Jazeera’s AJ+ from Gaza, shared a video on her Instagram and X accounts on Wednesday, telling her followers that her TikTok account had been banned.

“TikTok deleted my account. I had 1.4 million followers there, and I have been building that platform for four years,” Owda said in the video filmed from Gaza.

“I expected that it will be restricted, like every time, not banned forever,” she added.

Al Jazeera sent a query to TikTok inquiring about Owda’s account and is waiting for a reply.

Hours after Owda shared her video, an account that appeared to have the same username was still visible on TikTok with a message that said: “Posts that some may find uncomfortable are unavailable.”

The last post visible on that account was from September 20, 2025, nearly three weeks before a ceasefire was reached in Israel’s genocidal war on the Gaza Strip.

In her video on Wednesday, Owda pointed to recent remarks from Israeli Prime Minister Benjamin Netanyahu as well as Adam Presser, the new CEO of TikTok’s US arm, as a possible explanation for the ban.

Netanyahu met with pro-Israel influencers in New York in September last year, telling them that he hoped the “purchase” of TikTok “goes through”.

“We have to fight with the weapons that apply to the battlefield in which we engage, and the most important ones are social media,” Netanyahu, who is a war crimes suspect, said at the time.

“The most important purchase that is going on right now is … TikTok,” Netanyahu added. “TikTok, number one, number one, and I hope it goes through, because it can be consequential,” he said.

TikTok announced last week that a deal to establish a separate version of the platform in the US had been completed, with the new entity controlled by investment firms, many of which are American companies, including several linked to US President Donald Trump.

Owda also shared an undated video of Adam Presser, the new CEO of TikTok’s US arm.

In the video, Presser speaks about changes made at TikTok, where he previously worked as head of operations in the US, saying that “the use of the term Zionist as a proxy for a protected attribute” had been designated “as hate speech”.

“There’s no finish line to moderating hate speech, identifying hateful trends, trying to keep the platform safe,” Presser said.

Zionism is a nationalist ideology that emerged in the late 1800s in Europe, calling for the creation of a Jewish state.

Owda’s social media presence grew from posting daily videos in which she greeted her audience, saying, “It’s Bisan From Gaza – and I’m still alive.”

She made a documentary of the same name with Al Jazeera’s AJ+, which was awarded an Emmy in the Outstanding Hard News Feature Story category in 2024.

Her video on Wednesday came as Israel’s top court again postponed making a decision on whether foreign journalists should be allowed to enter and report on Gaza independently of the Israeli military.

Despite the ongoing ceasefire, an Israeli attack last week killed three Palestinian journalists in Gaza.

According to the Committee to Protect Journalists, at least 207 Palestinian journalists and media workers have been killed in Gaza since October 2023, with the “vast majority” killed by Israeli forces.

Musk’s electric car company says it will invest $2bn in artificial intelligence start-up as part of pivot away from auto market.

Tesla has reported its first-ever decline in annual revenue on a busy day for corporate earnings that also saw the release of results from Microsoft, Meta and Samsung Electronics.

Elon Musk’s electric car company said on Wednesday that revenue fell 3 percent year-on-year to $24.9bn in the final quarter of 2025. Revenue for all of 2025 was $94.8bn, down from $97.7bn the previous year.

Net profit fell 61 percent to $840m in the quarter, taking profit for the year to $3.8bn, down sharply from $7.1bn in 2024.

The Austin, Texas-based company also revealed that it had agreed to invest $2bn in Musk’s artificial intelligence start-up xAI – the developer of Musk’s controversial Grok chatbot – as part of a push to lessen its reliance on the auto market.

“Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale,” the company said in its earnings report.

Tesla shares rose about 2.2 percent in after-hours trading.

Also on Wednesday, tech giants Microsoft, Meta and Samsung reported strong earnings in their latest reports to shareholders.

Meta, the parent company of Facebook and Instagram, reported a profit of $22.8bn on revenue of $59.9bn in the October-December period, a 6 percent rise year-on-year.

Meta shares surged nearly 7 percent in extended-hours trading.

Microsoft said profit rose 60 percent to $38.5bn in the final quarter, based on revenue of $81.3bn.

“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” Microsoft CEO Satya Nadella said in a statement.

“We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”

Despite its strong earnings, Microsoft’s announcement that capital spending hit a record $37.5bn in the second quarter stoked fears of an AI investment bubble, sending stock prices sharply lower.

Microsoft’s shares fell more than 6 percent in after-hours trading on Wednesday.

Samsung Electronics, the biggest producer of memory chips globally, reported a profit of 20.1 trillion won ($13.98bn) on revenue of 93.8 trillion won ($65.6bn), a more than three-fold rise from the previous year.

Montreal, Quebec, Canada – Canadian Muslim leaders are calling for an end to Islamophobic rhetoric and fearmongering, as the country prepares to mark the nine-year anniversary of a deadly attack on a mosque in the province of Quebec.

Stephen Brown, CEO of the National Council of Canadian Muslims (NCCM), said Thursday’s anniversary is a reminder that Islamophobia in Canada “is not benign”.

“It’s something that unfortunately kills people,” Brown told Al Jazeera. “[The anniversary] forces us to remember that there’s real consequences to hatred.”

Six Muslim men were killed when a gunman opened fire at the Quebec Islamic Cultural Centre in Quebec City on January 29, 2017, marking the deadliest attack on a house of worship in Canadian history.

The assault left Quebec City’s tight-knit Muslim community deeply shaken, spurred vigils and condemnation across Canada, and shone a spotlight on a global rise in anti-Muslim hate and radicalisation.

The Canadian government denounced the shooting as a “terrorist attack” against Muslims and pledged to tackle the underlying issues.

In 2021, it announced it was designating January 29 as the National Day of Remembrance of the Quebec City Mosque Attack and Action against Islamophobia.

But Brown said he was not sure whether the lessons learned after what happened in Quebec City were being fully remembered today, nearly a decade later.

“Right after the Quebec City mosque massacre, there really was a desire in society to try to mend some of the wounds and build some bridges,” he said.

“Unfortunately, what a lot of people are seeing 1769652192 – and especially for Muslims that live in Quebec – … is a massive return to using Islamophobia and spreading fear of Muslims for political gain.”

Laws and rhetoric

Brown pointed to a series of measures put forward by Quebec’s right-wing Coalition Avenir Quebec (CAQ) government that human rights groups say target Muslim Quebecers.

In power since 2018, the CAQ passed a law in 2019 to bar some public servants from wearing religious symbols on the job, including headscarves worn by Muslim women, Sikh turbans and Jewish yarmulkes.

The government justified the law, known as Bill 21, as being part of its push to protect secularism in the province, which in the 1960s underwent a so-called “Quiet Revolution” to break the Catholic Church’s influence over state institutions.

But rights advocates said Bill 21 discriminated against religious minorities and would have a disproportionately harmful effect on Muslim women, in particular.

As the CAQ’s popularity has plummeted in recent months, it has passed and put forward more legislation to strengthen its so-called “state secularism” model in advance of a looming provincial election later this year.

Most recently, in late November, the CAQ introduced a bill that would extend the religious symbols prohibition to daycares and private schools, among other places.

Bill 9 also bars schools from offering meals based exclusively on religious dietary requirements – such as kosher or halal lunches – and outlaws “collective religious practices, notably prayer” in public.

“Quebec has adopted its own model of state secularism,” said the provincial minister responsible for secularism, Jean-Francois Roberge.

Roberge has rejected the idea that the bill was targeting Muslim or Jewish Quebecers, telling reporters during a news conference on November 27 that the “same rules apply to everybody”.

But the Canadian Civil Liberties Association (CCLA) – which is involved in a lawsuit against Bill 21 that will be heard by the Supreme Court of Canada later this year – said Bill 9 “masks discrimination as secularism”.

“These harmful bans disproportionately target and marginalize religious and racialized minorities, especially Muslim women,” Harini Sivalingam, director of the CCLA’s equality programme, said in a statement.

According to Brown at NCCM, the Quebec government’s moves have sent “the message to society that there’s something inherently dangerous or wrong with being a visible, practising Muslim”.

He warned that, when people in positions of authority use anti-Muslim rhetoric to try to score political points, “it gives licence to those who already hold a lot of these Islamophobic views or hateful views to actually take it out on people”.

‘Hate continues to threaten’

At the federal level, Amira Elghawaby, Canada’s special representative on combating Islamophobia, said the Canadian government has shown a continued commitment to tackling the problem.

That includes through an Action Plan on Combatting Hate, launched in 2024, which has devoted millions of dollars to community groups, antifascism programmes and other initiatives.

But Elghawaby told Al Jazeera that Islamophobia has nevertheless been rising in Canada, “whether it’s through police-reported hate crimes [or] whether it’s Canadians sharing that they’re experiencing discrimination at work [and] at school”.

According to Statistics Canada, 211 anti-Muslim hate crimes were reported to police in 2023 – a 102-percent jump compared with the previous year. There was a slight increase in 2024 – the most recent year for which the data is available – with 229 incidents reported.

Elghawaby, whose office was established after another anti-Muslim attack killed four members of a single family in London, Ontario, in 2021, said the figures underscore “that hate continues to threaten Canadians”.

“Canada, despite a global reputation of being a country that welcomes people from around the world, does struggle with division, with polarisation, with the rise of extremist narratives,” she said, adding that remembering the Quebec City mosque attack remains critical.

“[The families of the men killed] don’t want the loss of their loved ones to be in vain. They want Canadians to continue to stand with them, to continue to stand against Islamophobia, and to do their part in their own circles to help promote understanding,” Elghawaby said.

“History can sadly repeat itself if we don’t learn from the lessons of the past.”

FBI searches Fulton County election office in Georgia over 2020 election concerns linked to Trump-Biden contest.

The US Federal Bureau of Investigation (FBI) is executing a search warrant at a Fulton County election office in Georgia related to the 2020 United States election, an agency spokesperson said.

An FBI spokesperson said agents were “executing a court-authorised law enforcement action” at the county’s main election office in Union City, just south of Atlanta. The spokesperson declined to provide any further information, citing an ongoing matter.

FBI agents were spotted entering the Fulton County Election Hub and Operation Center, said Fox News, which first reported the search of a new facility that state officials opened in 2023.

The probe concerns the 2020 election, in which Republican Donald Trump, the current US president, lost to the former US president, Democrat Joe Biden, the official said.

The search comes as the FBI, under the leadership of Director Kash Patel, has moved quickly to pursue the political grievances of Trump, including by working with the Justice Department to investigate multiple perceived adversaries of the commander-in-chief.

The Justice Department had no immediate comment.

Find the votes

Trump has long insisted that the 2020 election was stolen even though judges across the country and his own attorney general said they found no evidence of widespread fraud that tipped the contest in Biden’s favour.

Representatives for Fulton County’s election office referred queries to the county’s external affairs office, which did not immediately return a call seeking comment.

The Democratic-leaning county, home to Atlanta, backed Biden by a wide margin in the 2020 election, helping him win the state and the presidency.

Trump unsuccessfully sought to overturn the result, pressuring the state’s top election official to “find” him enough votes to claim victory.

Earlier this month, Trump asked a state court for $6.2m in legal fees, saying he spent it fighting criminal charges of election interference filed by Fulton County District Attorney Fani Willis.

In August 2023, Willis obtained an indictment against Trump and 18 others, accusing them of participating in a wide-ranging scheme to illegally try to overturn the results of the 2020 presidential election.

That case was dismissed in November after courts barred Willis and her office from pursuing it because of an “appearance of impropriety” stemming from a romantic relationship she had with a prosecutor she had appointed to lead the case.

The United States Federal Reserve is holding interest rates steady in its first rate decision of 2026.

Rates will remain at 3.5 to 3.75 percent, the Fed said on Wednesday, defying US President Donald Trump’s calls for more aggressive interest rate cuts.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated,” the central bank said in its release announcing the decision.

Wednesday’s decision was widely expected. CME FedWatch, a tool that tracks expectations for monetary policy, forecast a more than 97 percent chance that the central bank would hold rates steady.

The tracker also expects two rate cuts in 2026, with the highest probability for the first cut occurring in June at the earliest.

“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization,” the central bank said.

The decision comes amid signs of stabilisation in the US labour market. The US economy added 584,000 jobs in 2025, marking the lowest annual job growth since 2003. Payrolls rose by 64,000 jobs in October and 50,000 in December. While job growth remains weak, December’s figure represents a modest rebound from October, when the economy lost 105,000 jobs, according to the Bureau of Labor Statistics.

There are indications that the labour market may cool further in the months ahead. This week, both Amazon and UPS announced tens of thousands of job cuts, some of which were driven by a push towards increasing the use of artificial intelligence in the workplace.

Another threat to the US economy and the job market comes in the form of a looming government shutdown. That can happen as early as Saturday, and depending on its duration, it could slow spending as federal workers are temporarily left without paycheques.

Political tensions

The decision to hold interest rates steady comes despite Trump’s increased pressure on the central bank to cut rates. Fed Chairman Jerome Powell has long stressed the Federal Reserve’s independence, and Wednesday’s decision is the first since Powell’s rebuke of a criminal Department of Justice investigation into him. The central bank chair, whose term expires in May, called the inquiry a “pretext” to pressure him.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said in remarks in early January in response to a subpoena.

Last week, the Supreme Court heard arguments in a case examining whether Trump has the legal authority to remove Fed Governor Lisa Cook amid allegations of mortgage fraud.

Meanwhile, Fed Governor Stephan Miran’s term is set to expire this week. Trump picked Miran to temporarily fill the seat vacated by Adriana Kugler in August while seeking a more permanent replacement.

Miran was one of two central bank governors who voted to lower interest rates alongside Christopher Waller.

The developments come as Trump searches for a new Fed chair. He has explicitly called for further interest rate cuts and for a chairman who shares his views.

“Anybody that disagrees with me will never be the Fed Chairman!” Trump said in a post on Truth Social in December.

The political pressure has caught the attention of global central banks as well.

“The Federal Reserve is the biggest, most important central bank in the world, and we all need it to work well. A loss of independence of the Fed would affect us all,” Bank of Canada Governor Tiff Macklem said on Wednesday. Canada’s central bank held rates steady ahead of the US central bank’s decision.

Macklem was one of the central bank heads who earlier this month issued a joint statement backing Powell. Last September, Macklem said Trump’s attempts to pressure the Fed were starting to hit markets.

The Dow Jones Industrial Average is flat, as is the Nasdaq, and the S&P 500 is down 0.1 in midday trading.

Wednesday’s cuts are the second mass layoffs in three months at the e-commerce giant.

Amazon is slashing 16,000 jobs in a second wave of layoffs at the e-commerce giant in three months, as the company restructures and leans on artificial intelligence.

Wednesday’s cuts follow the 14,000 redundancies that the Seattle, Washington–based company made in October. The layoffs are expected to affect employees working in Prime Video, Amazon Web Services, and the company’s human resources department, according to the Reuters news agency, which first reported the cuts.

Amazon confirmed to Al Jazeera that all the cuts to the company will affect corporate-level employees.

In a memo to the employees, shared with Al Jazeera, Amazon said workers in the United States impacted by the cuts will have a 90-day window to find a new role in the company.

“Teammates who are unable to find a new role at Amazon or who choose not to look for one, we’ll provide transition support including severance pay, outplacement services, health insurance benefits [as applicable], and more,” Beth Galetti, senior vice president of People Experience and Technology at Amazon, said in the note provided to Al Jazeera.

The announced reductions come amid a broader restructuring effort at the company. Earlier this week, Amazon announced it would close its brick-and-mortar Amazon Go and Amazon Fresh grocery stores, accounting for more than 70 locations across the US.

Some of those physical stores will be converted into Whole Foods Market locations. Amazon acquired the Austin, Texas–based grocery chain in 2017, and it has since grown by 40 percent.

The cuts come alongside increased investment in AI. In June, CEO Andy Jassy touted investment in generative AI and floated the possibility of redundancies.

“We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,” Jassy said in a blog post at the time.

According to the AFL-CIO CEO PayWatch tracker, Jassy made 43 times more than the median employee at the company.

Amazon’s stock tumbled in midday trading and was down 0.7 percent. Overall, however, the stock is up 7 percent year to date.

Wave of cuts

Amazon is the latest company in a wave of redundancies hitting the tech sector at the start of the year. Earlier this week, Pinterest announced it would cut 780 jobs as the social media company reallocated resources amid increased investment in AI. Last week, Autodesk said it would cut about 1,000 jobs, also tied to AI.

Layoffs.fyi, a website that tracks redundancies in the tech sector, shows that more than 123,000 tech workers lost their jobs in 2025 as companies, including Salesforce and Duolingo, doubled down on AI investments.

But it is not just the tech sector facing redundancies. On Tuesday, UPS also announced job cuts. The shipping giant said it would eliminate 30,000 jobs and close 24 facilities as it reduces deliveries with Amazon.

UPS stock was down more than 1.2 percent in midday trading.

Fears of a US attack on Iran are again heightened after Donald Trump demanded Tehran submit to his demands or face an attack “like with Venezuela.”

As the US moves to launch phase two of the Gaza ceasefire, we look at how Israel has fallen short on phase one – and why the deal is advancing anyway.

China is showcasing itself as a solid business and trading partner to traditional allies of the United States and others who have been alienated by President Donald Trump’s politics, and some of them appear ready for a reset.

Since the start of 2026, Chinese President Xi Jinping has received South Korean President Lee Jae Myung, Canadian Prime Minister Mark Carney, Finnish Prime Minister Petteri Orpo and Irish leader Micheal Martin.

This week, United Kingdom Prime Minister Keir Starmer is on a three-day visit to Beijing, while German Chancellor Friedrich Merz is expected to visit China for the first time in late February.

Among these visitors, five are treaty allies of the US, but all have been hit over the past year by the Trump administration’s “reciprocal” trade tariffs, as well as additional duties on key exports like steel, aluminium, autos and auto parts.

Canada, Finland, Germany and the UK found themselves in a NATO standoff with Trump this month over his desire to annex Greenland and threats that he would impose additional tariffs on eight European countries he said were standing in his way, including the UK and Finland. Trump has since backed down from this threat.

China’s renewed sales pitch

While China has long sought to present itself as a viable alternative to the post-war US-led international order, its sales pitch took on renewed energy at the World Economic Forum‘s (WEF) annual summit in Davos, Switzerland, earlier this month.

As Trump told world leaders that the US had become “the hottest country, anywhere in the world” thanks to surging investment and tariff revenues, and Europe would “do much better” to follow the US lead, Chinese Vice Premier Li Hefeng’s speech emphasised China’s ongoing support for multilateralism and free trade.

“While economic globalisation is not perfect and may cause some problems, we cannot completely reject it and retreat to self-imposed isolation,” Li said.

“The right approach should be, and can only be, to find solutions together through dialogue.”

Li also criticised the “unilateral acts and trade deals of certain countries” – a reference to Trump’s trade war – that “clearly violate the fundamental principles and principles of the [World Trade Organization] and severely impact the global economic and trade order”.

Li also told the WEF that “every country is entitled to defend its legitimate rights and interests”, a point that could be understood to apply as much to China’s claims over places like Taiwan as to Denmark’s dominion over Greenland.

“In many ways, China has chosen to cast itself in the role of a stable and responsible global actor in the midst of the disruption that we are seeing from the US. Reiterating its support for the United Nations system and global rules has often been quite enough to bolster China’s standing, especially among countries of the Global South,” Bjorn Cappelin, an analyst at the Swedish National China Centre, told Al Jazeera.

The West is listening

John Gong, a professor of economics at the University of International Business and Economics in Beijing, told Al Jazeera that the recent series of trips by European leaders to China shows that the Global North is listening, too. Other notable signs include the UK’s approval of a Chinese “mega embassy” in London, Gong said, and progress in a years-long trade dispute over Chinese exports of electric vehicles (EVs) to Europe.

Starmer is also expected to pursue more trade and investment deals with Beijing this week, according to UK media.

“A series of events happening in Europe seems to suggest an adjustment of Europe’s China policy – for the better, of course – against the backdrop of what is emanating from Washington against Europe,” Gong told Al Jazeera.

The shifting diplomatic calculations are also clear in Canada, which has shown a renewed willingness to deepen economic ties with China after several spats with Trump over the past year.

Carney’s is the first visit to Beijing by a Canadian prime minister since Justin Trudeau went in 2017, and he came away with a deal that saw Beijing agree to ease tariffs on Canadian agricultural exports and Ottawa to ease tariffs on Chinese EVs.

Trump lashed out at news of the deal, threatening 100 percent trade tariffs on Canada if the deal goes ahead.

In a statement last weekend on his Truth Social platform, Trump wrote that Carney was “sorely mistaken” if he thought Canada could become a “‘Drop Off Port’ for China to send goods and products into the United States”.

The meeting between Carney and Xi this month also thawed years of frosty relations after Canada arrested Huawei executive Meng Wanzhou in late 2018 at the behest of the US. Beijing subsequently arrested two Canadians in a move that was widely seen as retaliation. They were released in 2021 after Meng reached a deferred agreement with prosecutors in New York.

In Davos, Carney told world leaders that there had been a “rupture in the world order” in a clear reference to Trump, followed by remarks this week to the Canadian House of Commons that “almost nothing was normal now” in the US, according to the CBC.

Carney also said this week in a call with Trump that Ottawa should continue to diversify its trade deals with countries beyond the US, although it had no plans in place yet for a free-trade agreement with China.

Filling the void

Hanscom Smith, a former US diplomat and senior fellow at Yale’s Jackson School of International Affairs, told Al Jazeera that Beijing’s appeal could be tempered by other factors, however.

“When the United States becomes more transactional, that creates a vacuum, and it’s not clear the extent to which China or Russia, or any other power, is going to be able to fill the void. It’s not necessarily a zero-sum game,” he told Al Jazeera. “Many countries want to have a good relationship with both the United States and China, and don’t want to choose.”

One glaring concern with China, despite its offer of more reliable business dealings, is its massive global trade surplus, which surged to $1.2 trillion last year.

Much of this was gained in the fallout from Trump’s trade war as China’s manufacturers – facing a slew of tariffs from the US and declining demand at home – expanded their supply chains into places like Southeast Asia and found new markets beyond the US.

China’s record trade surplus has alarmed some European leaders, such as French President Emmanuel Macron, who, in Davos, called for more foreign direct investment from China but not its “massive excess capacities and distortive practices” in the form of export dumping.

Li tried to address such concerns head-on in his Davos speech. “We never seek trade surplus; on top of being the world’s factory, we hope to be the world’s market too. However, in many cases, when China wants to buy, others don’t want to sell. Trade issues often become security hurdles,” he said.

US Representative Ilhan Omar of Minnesota was sprayed with an unknown substance by an assailant during a public meeting in Minneapolis, where she called for immigration agency ICE to be abolished. She was unharmed, and police arrested the man on third-degree assault charges.

US president says he still has confidence in Homeland Security Secretary Kristi Noem amid calls for her resignation.

US President Donald Trump said his administration intends to “de-escalate” the spiralling crisis in the state of Minnesota after federal agents killed two United States citizens, including intensive care nurse Alex Pretti, who was shot by two Border Patrol officers over the weekend.

“I don’t think it’s a pullback. It’s a little bit of a change,” President Trump told Fox News on Tuesday.

“We’re going to de-escalate a little bit,” Trump said, referring to a sweeping federal immigration crackdown in Minneapolis that has led to weeks of protests, the killing of Pretti and Renee Good, and a standoff between state and federal officials.

Top Trump officials, including Department of Homeland Security Secretary Kristi Noem, are under fire from Democrats and a growing number of Republicans over how they responded to Pretti’s shooting.

Pretti was filming Border Patrol officers with his phone when he was shot and killed on Saturday.

He was also a licensed gun owner with a permit to carry a weapon in public, which he was wearing at the time of the shooting and which appears to have been confiscated by officers before he was killed.

Trump told Fox News that he still had confidence in Noem despite calls for her resignation.

Noem, who oversees both Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), responded to the killing by accusing Pretti of engaging in “domestic terrorism” and suggested the ICU nurse had brandished his weapon at Border Patrol agents during an altercation.

Noem’s remarks preceded any investigation findings and broke with the longstanding protocols of how US officials discuss a civilian shooting by law enforcement. Her characterisation of events also conflicted with preliminary video evidence showing that Pretti did not take out his weapon at any time while he was tackled and later shot and killed by officers.

A CBP official informed Congress on Tuesday that two federal officers fired shots during the killing of Pretti.

According to a notice sent to Congress, officers tried to take Pretti into custody and he resisted, leading to a struggle. During the struggle, a Border Patrol agent yelled, “He’s got a gun!” multiple times, the official said in the notice, according to The Associated Press news agency.

A Border Patrol officer and a CBP officer each fired Glock pistols, the notice said.

Investigators from CBP’s Office of Professional Responsibility conducted the analysis based on a review of body-worn camera footage and agency documentation, the notice said. US law requires the agency to inform relevant congressional committees about deaths in CBP custody within 72 hours.

Package-delivery giant targets savings of $3bn in 2026 amid push to slash deliveries for Amazon.

United Parcel Service, one of the world’s largest package-delivery companies, has announced plans to slash up to 30,000 jobs amid a push to cut costs and boost profits.

UPS, based in the US state of Georgia, will make the cuts as part of efforts to achieve savings of $3bn in 2026, UPS chief financial officer Brian ⁠Dykes said on an earnings call on Tuesday.

Dykes said the job cuts, part of plans to reduce UPS’s reliance on deliveries for its largest customer, Amazon, would be achieved through attrition and voluntary buyouts.

“We expect to offer a second voluntary separation programme for full-time drivers,” Dykes said.

UPS will also shut 24 buildings in the first half of the year and evaluate other buildings for closure in the second half, Dykes said.

He said the savings would be on top of $3.5bn in savings achieved in 2025 through cost-cutting measures, including the elimination of 26.9 million labour hours and the closure of 93 buildings.

Sean O’Brien, president of the Teamsters union, slammed the job cuts in a statement posted on social media.

“Corporate vultures giggled about giving their disrespectful driver buyout program another shot,” O’Brien said.

“Reminder: Teamsters overwhelmingly rejected UPS’s insulting payoff last year. We still know our worth. Drivers still endure violent winters and brutal heat to make UPS its billions. UPS must honor our contract and reward our members.”

UPS announced last year that it would reduce shipments for Amazon by half as part of plans to focus on a smaller volume of more lucrative deliveries.

The firm’s reported revenues of $24.5bn for the final three months of 2025, taking earnings for the year to $88.7bn, and projected revenues in 2026 are expected to hit $89.7bn.

UPS shares were largely unmoved on Tuesday, closing 0.22 percent higher.