AP-Newswatch

Fed hold rates steady, says job market is ‘solid’ while inflation ‘remains somewhat elevated’

WASHINGTON (AP) — The Federal Reserve left its key interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue. A key reason for the earlier reductions was that hiring weakened in the summer and fall. In its statement Wednesday, the Fed upgraded its assessment of the job market, calling it “solid.” The Fed also appeared to toughen its assessment of inflation, saying that it “remains somewhat elevated.” At a press conference, Fed Chair Jerome Powell decline to address Trump’s recent comments calling for lower rates.

Things to know about the Trump administration order on miles per gallon for cars and pickups

DETROIT (AP) — Hours after being sworn in as the new U.S. Secretary of Transportation, Sean Duffy took aim at the main way the federal government regulates miles per gallon for cars and pickup trucks — also a principal way that it controls air pollution and addresses climate change. Duffy ordered the federal agency in charge of the fuel economy standards to reverse them as soon as possible. The standards have been in place since the 1970s energy crisis and were intended to conserve fuel and save consumers money at the gas pump. The new administration says they limit consumer choice and don’t maximize use of American oil.

Tesla’s fourth-quarter results fall short of Wall Street estimates as rivals steal customers

Tesla’s fourth-quarter net income fell 71% from a year ago when results were boosted by a one-time tax benefit. The latest results fell short of Wall Street forecasts. The electric vehicle company run by Elon Musk said that it made $2.31 billion from October through December, less than the $7.93 billion profit it posted in the same period in 2023. Excluding one-time items in both periods, the Austin, Texas, company’s profits rose 3% to 73 cents a share, still not enough to meet analysts’ estimates. Revenue in the quarter rose 2% as Tesla offered a series of incentives to drum up demand.

Microsoft reports 10% quarterly profit growth as it works to show AI investments paying off

REDMOND, Wash. (AP) — Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its artificial intelligence technology. The company reported net income for the quarter of $24.1 billion, or $3.23 per share, beating Wall Street expectations of $3.11 per share. The Redmond, Washington-based software maker posted revenue of $69.6 billion in the quarter, up 12% from the previous year, also beating expectations. Analysts polled by FactSet Research expected Microsoft to generate revenue of $68.87 billion, and currently project revenue of $69.81 billion for the January-March quarter.

Stock market today: Wall Street slips after the Federal Reserve keeps interest rates steady

NEW YORK (AP) — U.S. stocks slipped after the Federal Reserve held its main interest rate steady and broke a run of cuts that began in September. The S&P 500 fell 0.5% Wednesday. The Dow Jones Industrial Average dipped 0.3%, and the Nasdaq composite fell 0.5%. Treasury yields held relatively steady following the Fed’s announcement, which could hint at interest rates staying on hold for a while. Lower rates would help the economy by making it cheaper for U.S. households and companies to borrow, but they could give also inflation more fuel. Nvidia sank again to continue its shaky week after DeepSeek upended the AI industry.

What is the Office of Personnel Management? Trump is relying on this agency to reshape government

WASHINGTON (AP) — President Donald Trump is relying on a relatively obscure federal agency to reshape government. The Office of Personnel Management was created in 1979 by President Jimmy Carter and is the equivalent of the government’s human resources departent. It helps manage the civil service, including pay schedules, health insurance and pension programs. The agency has offered millions of federal workers eight months of salary if they voluntarily choose to leave their jobs by Feb. 6. The unconventional plan shows both Trump’s desire to bring the bureaucracy under control and the downsizing tendencies of Elon Musk, who is leading the president’s Department of Government Efficiency.

Senate confirms Zeldin to lead Environmental Protection Agency as Trump vows to cut climate rules

WASHINGTON (AP) — The Republican-controlled Senate has confirmed Lee Zeldin to lead the Environmental Protection Agency. It’s a key role to help President Donald Trump fulfill his pledge to roll back major environmental regulations, including those aimed at slowing climate change and encouraging use of electric vehicles. The vote was 56-42 in Zeldin’s favor. Zeldin, a former Republican congressman from New York, is a longtime Trump ally. He has pledged to be a good steward of the environment and support career staff at EPA, but has declined to commit to specific policies. Trump led efforts to dismantle more than 100 environmental protections during his first term and has promised to do so again.

After talking tough during campaign, Trump appears to ease up on China at start of presidency

WASHINGTON (AP) — On the campaign trail last year, President Donald Trump talked tough about imposing tariffs as high as 60% on Chinese goods and threatened to renew the trade war with China that he launched during his first term. But now that he’s back in the White House, Trump appears to be seeking a more nuanced relationship with the country that both Republicans and Democrats have come to see as the gravest foreign policy challenge to the U.S. Trump seems to be showing restraint and bowing to a more complicated reality than he described while running for office.

Despite chaos over Trump White House’s funding pause, FAFSA forms and student loans still available

A temporary freeze imposed briefly this week by the White House on federal grants and loans left many students wondering about the impact to the FAFSA form used to apply for financial aid. President Donald Trump’s administration rescinded the funding directive Wednesday, and the U.S. Department of Education said even if the pause had taken effect, it would not have applied to direct assistance to Americans including federal student loans. And FAFSA apparently remained available during the confusion. The National Association of Student Financial Aid Administrators, a nonprofit membership organization, said Wednesday it had not received complaints about FAFSA availability from administrators at any schools.

Trump’s Commerce Secretary nominee, Howard Lutnick, vows to sell his business interests in 90 days

WASHINGTON (AP) — Billionaire financier Howard Lutnick, President Donald Trump’s choice to lead the Commerce Department, said Wednesday that he would sell all of his business holdings within 90 days. “I will divest, I will sell all of my interests, my business interests, all of my assets, everything,″ Lutnick said in a confirmation hearing Wednesday before the Senate Committee on Commerce, Science, and Transportation. ”I made the decision I’ve made enough money in my life.″