News Wrap: Fed leaves rates unchanged but signaled it anticipates three cuts this year

Geoff Bennett:

In the day's other headlines: The Federal Reserve left short-term interest rates unchanged again, but signaled it still anticipates three cuts this year.

Policymakers also estimated that inflation will stay higher than first expected into next year. Fed Chair Jerome Powell said it might mean interest rates can't come down as fast as they hoped.

Jerome Powell, Federal Reserve Chairman:

We were saying that we will — it's going to be a bumpy ride. We consistently said that. Now here are some bumps. And the question is, are they more than bumps? And we just don't — we can't know that. That's why we are approaching this question carefully.

Geoff Bennett:

Meantime, the Congressional Budget Office projected that, in 30 years' time, federal debt will reach 166 percent of U.S. economic output. That's actually down from the last forecast.

Secretary of State Antony Blinken is back in the Middle East tonight trying to get an agreement to halt the war in Gaza. He began with a stop in Saudi Arabia to meet with the crown prince and his foreign minister. Blinken flies to Egypt tomorrow and then to Israel on Friday.

In Washington, Senate Majority Leader Chuck Schumer declined a request by Israeli Prime Minister Benjamin Netanyahu to speak to the Senate Democratic Caucus today. The prime minister spoke instead via video call to Senate Republicans. Schumer had criticized the prime minister last week and suggested Israel needs new elections.

Today, the parties blamed each other for politicizing the issue.

Sen. Chuck Schumer (D-NY):

I care deeply about Israel and its long-term future. When you make the issue partisan, you hurt the cause of helping Israel.

Sen. Mitch Mcconnell(R-KY):

I still think our best policy is to not give any democratic ally advice about when to have an election, who ought to run the government, or how to conduct a military campaign.

Geoff Bennett:

In Gaza, Palestinians report at least 28 people were killed in a series of Israeli airstrikes on Tuesday. Today, people searched for survivors after one attack on a refugee camp. And mourners said funeral prayers over the dead in Central Gaza.

Helicopters started airlifting American citizens out of Haiti's capital today as gang violence there raged on. The State Department announced, 15 people were able to leave Port-au-Prince. Nearly 1,600 have inquired about being brought out.

Vedant Patel, Principal Deputy State Department Spokesperson:

And, of course, the situation the ground is one of the biggest factors into determining the frequency at which we can do this and what other options might be available to American citizens, including potential commercial options.

Geoff Bennett:

The airlift took place as gangs staged new attacks in the suburbs of Port-au-Prince. Caribbean officials are trying to arrange a transitional council to restore order.

The Biden administration is awarding Intel nearly $20 billion in loans and grants to expand U.S. computer chip production. The president announced it today at an Intel campus near Phoenix during a Western campaign swing.

And former President Trump is indicating he could support a national abortion ban at 15 weeks of pregnancy. The former president previously took credit for appointing three Supreme Court justices who voted to overturn Roe v. Wade.

And on Wall Street, major stock indexes reached all-time highs after the Fed said it's still planning for three interest rate cuts this year. The Dow Jones industrial average gained 401 points to close at 39512. The Nasdaq rose 202 points. The S&P 500 added 46.

And Major League Baseball's new season officially opened tonight with its first game ever in South Korea. Seoul was the setting, as the Los Angeles dodgers beat the San Diego padres 5-2. L.A. scored four runs in the eighth inning to fuel the comeback win. And Shohei Ohtani capped the rally with a single in his Dodger debut after signing a record $700 million contract.

And the U.S. is falling fast in the annual World Happiness Report. The global survey found the U.S. sliding to 23rd place from 15th last year. Americans under the age of 30 drove the drop, while seniors were much happier. The University of Oxford reports that Finland is still the happiest country. Afghanistan and Lebanon rank at the bottom.

And still to come on the "NewsHour": the EPA updates standards for vehicle tailpipe emissions; Hong Kong passes a second national security law, tightening China's grip and cracking down on dissent; victims seek maximum sentences for the six Mississippi police officers who tortured and sexually assaulted them; and a new novel explores the life of an accomplished, but forgotten member of the art world.