News Wrap: Fed chair says interest rates could be cut this year

Amna Nawaz:

In the day's other headlines: The head of the Federal Reserve again talked about cutting interest rates this year, but only after more signs that inflation will keep falling.

At a House hearing, Jerome Powell noted that price hikes have definitely slowed from the 40-year highs of 2022. But he said the Central Bank does not want to act prematurely.

Jerome Powell, Federal Reserve Chairman:

We think, because of the strength in the economy and the strength in the labor market and the progress we have made, we can approach that step carefully and thoughtfully and with greater confidence. And when we reach that confidence — the expectation is we will do so some time this year — we can then begin dialing back the restriction on our policy.

Amna Nawaz:

For now, inflation remains slightly above the Fed's target of 2 percent on an annual basis.

In Haiti, politicians began trying to form a new governing coalition, as the Caribbean nation remained largely paralyzed by gang violence. The gangs have demanded that Prime Minister Ariel Henry step aside or face a possible civil war. The U.S. State Department called today for Henry to respond.

Matthew Miller, State Department Spokesman:

We are not calling on him or pushing for him to resign, but we are urging him to expedite the transition to an empowered and inclusive governance structure that will move with urgency to help the country prepare for a multinational security support mission to address the security situation and pave the way for free and fair elections.

Amna Nawaz:

Henry has been abroad, but he flew into Puerto Rico last night because Haiti's main airport is closed. He was taken through customs, then driven away in a convoy.

A missile attack by Houthi fighters in Yemen killed three crew members on a commercial vessel today and forced the others to abandon ship. They were the first deaths since the Iranian-backed group began targeting ships in November over the war in Gaza. Separately, video from the Indian navy showed sailors fighting a fire on another ship. The owner said it was hit by a Houthi missile.

The United Nations' migration agency reports a record number of migrants, more than 8,500, died on land and sea routes last year. That was up nearly 20 percent from a year earlier. The biggest increase came in the Mediterranean, with people fleeing conflict in the Middle East and in North Africa.

Back in this country, police patrolling New York's subway system will soon be joined by the National Guard after a series of violent crimes. Governor Kathy Hochul announced today that 750 guard members will conduct bag searches and deter people from bringing weapons into the subway system.

Gov. Kathy Hochul (D-NY):

This has to end. New Yorkers deserve no less. And to those who are feeling anxious whenever they walk through those turnstiles, we will stop at nothing to keep you safe, you and your family members.

Amna Nawaz:

Overall, crime in New York has dropped since the pandemic, but, just last week, a passenger slashed a subway conductor in the neck.

The House passed a spending package of $460 billion today to avert a partial government shutdown Friday night. The legislation funds five major departments for the rest of the fiscal year. The Senate is expected to approve it as well. A second package, including defense spending, has to pass before March 22.

And on Wall Street, stocks managed modest gains after Monday's big losses. The Dow Jones industrial average added 75 points to close at 38661. The Nasdaq rose 92 points. The S&P 500 was up 26.

Still to come on the "NewsHour": how Sudan's civil war has created a massive hunger crisis; a measles outbreak in more than a dozen states raises concerns about a drop in vaccinations; author Paul Lynch discusses his Booker Prize-winning dystopian novel; plus much more.