News Wrap: Federal Reserve chair expects interest rates to rise this month

Judy Woodruff:

In the day's other news: President Biden hit the road, seeking momentum after his State of the Union address.

He traveled to the Wisconsin-Minnesota border and the site of an aging bridge to tout his billion-dollar infrastructure program. It is part of his effort to rebuild his political support ahead of the midterm elections. We will get details after the news summary.

The head of the Federal Reserve has confirmed that he expects to start raising interest rates this month. Jerome Powell said today that he supports a traditional quarter-point increase. He did not rule out bigger hikes if inflation keeps accelerating.

At a congressional hearing, Powell also acknowledged that the Russian invasion of Ukraine could make conditions more volatile.

Jerome Powell, Federal Reserve Chairman:

Given the current situation, we need to move carefully, and we will. And we will be nimble. We will be looking at the situation as it evolves, and, again, we will use our tools to add to financial stability, not to create uncertainty.

Judy Woodruff:

The Fed is widely expected to raise interest rates at least five times this year. This month's increase would be the first since 2018.

The Biden White House has rolled out a new 90-page COVID preparedness plan. Officials say the goal is to stop letting the virus dictate how Americans live. The plan would provide free antiviral pills at pharmacies to people who test positive. It also envisions vaccines that work against multiple strains of a virus.

Jeffrey Zients, White House COVID-19 Response Coordinator:

We have reached a new moment in the fight with COVID-19. Today, we are in a position to move forward safely, and to get back to our more normal routines.

Funding from Congress will be critical for these efforts, so we will be working very closely with Capitol Hill going forward.

Judy Woodruff:

Officials did not say how much funding they will ask for. Meanwhile, the Defense Department lifted the indoor masking mandate at the Pentagon, in keeping with new CDC guidance.

Police in New Zealand today broke up a camp for protesters targeting pandemic restrictions. Officers moved in on the site that was set up three weeks ago, outside Parliament. Some protesters fought back, throwing things and burning tents and mattresses. The prime minister condemned their actions.

Jacinda Ardern, Prime Minister of New ZealandJ: We have a difficult journey in front of us to address the underlying cause of what we have seen here today. But, in doing so, we will never, ever excuse it. It was an attack on our front-line police. It was an attack on our Parliament. It was an attack on our values. And it was wrong.

Judy Woodruff:

Police also towed cars and arrested at least 65 people. It came as New Zealand is facing its biggest outbreak yet, with the spread of Omicron.

In neighboring Australia, thousands of people were ordered to evacuate near Sydney, and the death toll reached 14 from record flooding. A powerful storm cell dumped as much as eight inches of rain after rolling south from Brisbane. Rivers along Sydney's western edge reached historic levels, and officials warned the flooding could be the worst in more than 60 years.

The United Nations will begin drafting a global treaty on plastic pollution. A total of 175 nations agreed unanimously today to come up with a proposed document by 2024. It is meant to be legally binding and to cover the life-cycle of plastics from production to design to disposal.

Back in this country, Texas Republican congressman Van Taylor dropped out of his reelection race after admitting to an extramarital affair. He had been forced into a run-off in Tuesday's primary. In other results, Republican Governor Greg Abbott and Democratic challenger Beto O'Rourke will face off in November.

The Trump-endorsed Republican attorney general, Ken Paxton, will meet George P. Bush in a May run-off. And Democratic Congressman Henry Cuellar also faces a May run-off with Jessica Cisneros, his progressive opponent.

And on Wall Street, stocks bounced back on hopes that any interest rate hikes by the Federal Reserve will be modest. Major indexes were up well over 1.5 percent. The Dow Jones industrial average gained nearly 600 points to close at 33891. The Nasdaq rose 219 points. The S&P 500 added 80.