CNBC's Steve Liesman reports on the latest news regarding the Federal Reserve.

Washington

Federal Reserve Chair Jerome Powell has suggested that the central bank is likely to continue with interest rate cuts, though he did not make an explicit commitment. Powell stated that the Fed's outlook for employment and inflation remains largely unchanged from previous forecasts, which included the possibility of two additional rate cuts within the year. He highlighted that rising downside risks to employment have influenced the Fed's approach, and that recent data, especially in the wake of a government shutdown, points to higher risks for employment and inflation, mainly due to tariffs rather than broader inflationary pressures.

Powell also mentioned that the Fed may soon stop reducing its balance sheet, citing tightening liquidity conditions and a portfolio composition that is overweight in longer-term assets. While he did not decisively endorse further rate cuts, Powell did not push back against market expectations for such moves, maintaining a steady policy trajectory in the absence of new government data.

Fed Chair Powell suggests rate cuts are likely to continue

The yield on the 10-year back below 4%, hitting the lowest level since September 17th. Let's get to senior economics reporter, Steve Leisman, for the biggest takeaways from the Fed chair. Is that the oddest couple that you've ever, when I got, I looked over and I said, that's not, that person looks like Cathie Wood. And then I looked closer and I said, that is Cathie Wood. Do you know what her Bitcoin forecast was for? Do you know what price, Steve? No, I don't, Joe. 2.4 million by 2000. It just was, to me, the juxtaposition of Jay Powell with Cathie Wood was a little, did it strike you as a little bit odd or not? You know, they put some interesting pairings here. It was all I'll say. I guess it's like, maybe it's like us. Exactly, exactly. But we did pick the right ties this morning. Yeah, we did. Look at that. Right, exactly. And the right color suit. Look at you with a suit on, by the way, and a wake afternoon, which is unusual, of course. Fed chair Powell suggesting, I think it's interesting to go through the nuance on this, though. He suggested, but didn't explicitly say that rate cuts are likely to continue. He told the NAID meeting at the Fed's Outlook for Employment and Inflation, have not changed much since September when Fed officials were forecasting another two rate cuts this year. Rising downside risks to employment have shifted our assessment of the balance of risks. As a result, we judged it appropriate to take another step toward a more neutral policy stance at our September meeting. There is no risk-free path for policy as we navigate the tension between our employment and inflation goals. Powell said the Fed was using a range of private sector and still available government reports to gauge how the economy is doing in the wake of the shutdown. That data so far suggests higher downside risks for employment and inflation, mostly from tariffs, not part of a broader inflation problem. He also noted that data prior to the shutdown showed the economy on a firmer path with those better growth. Now, this may be something that excited the market because separately, Powell said the Fed may approach a point in the coming months where it stops reducing the balance sheet or QT. Three points he made about that. One, there's some signs of liquidity conditions are tightening from firmer repo and other things that the Fed's monitoring. The portfolio is overweight, longer assets, underweight, shorter term assets. And finally, the longer term, the portfolio should be primarily composed of treasuries. Last thing is Powell's comments were not a decisive endorsement of those future cuts. He just said the situation hadn't changed since September and he did not lean against, Joe, this is important, lean against the market expectations, which as you know, are pretty firm for those two cuts this year. How can anything change when you're not getting any government data? It's a good question. It's why I didn't expect much change at all in his outlook. Had there been a bunch of reports, had they surprised to the upside or the downside, it might've changed his view. But basically, they're going on the trajectory they were on, Joe, it's a bit like you're in a car and all of a sudden you can't see anything, so you just kind of keep the wheel straight. Well, that wheel showed that you had the downside risk for employment increasing and you had inflation was mostly from tariffs and not broader. But we'll see. Next week, we'll have a look at the Fed's next move But we'll see. Next Friday, Joe, when we have that CPI report come out.

The U.S. military struck a fifth apparent Venezuelan boat allegedly carrying drugs, U.S. President Donald Trump announced on social media Tuesday. CBS News' Natalie Brand has more details.

Caracas

Trump says U.S. struck another alleged Venezuelan boat

News organizations including The New York Times, The Associated Press and Newsmax as well as ABC, CBS, NBC, CNN and Fox News say they will not sign new press rules as laid out in a Defense Department document. This could mean the Trump administration will evict reporters from the Pentagon.

Major U.S. news media outlets refusing to sign new Pentagon rules

Madagascar’s president ousted in a military takeover — Youth-led protests and parliament’s impeachment vote spark political turmoil.

Antananarivo

Madagascar's military seizes power, president ousted

Thousands of messages shared in a group chat of Young Republicans are revealing some racist thoughts that even they worried about being leaked. The exchanges obtained by Politico are part of a Telegram chat among Young Republican leaders in New York, Kansas, Arizona and Vermont. Jason Beeferman, New York state politics reporter for Politico, joins with more.

Politico exposes racist messages sent by Young Republican leaders

The U.S. stock market rebounded on Monday (October 13) after President Trump appeared to walk back imposing new tariffs on Chinese goods.

Markets rebound after Trump softens tone on China tariffs

U.S. President Donald Trump is heading back to the U.S. after his whirlwind trip to the Middle East, where he celebrated the first phase of a peace plan between Israel and Hamas.

Sharm El-Sheikh

Middle East Conflict

Trump, world leaders sign Gaza peace plan and discuss next steps

The government shutdown entered its third week on Monday as the Senate is set to reconvene on Tuesday. CBS News' Nikole Killion has more from Capitol Hill.

Shutdown drags into third week as Senate set to reconvene

U.S. President Donald Trump was greeted in Tel Aviv with cheers and a military ceremony as he met families of hostages held in Gaza and addressed Israel's parliament. He now travels to Sharm El Sheikh, Egypt, to join world leaders in discussions on Gaza's future.

Tel Aviv-Yafo

Trump meets with Israeli leaders and hostage families

Twenty living hostages were released by Hamas after more than two years in captivity as a ceasefire continues to hold. Families in Israel describe emotional reunions while others continue to await confirmation about missing relatives.

Families reunite as ceasefire brings hostages, prisoners home

Israeli officials have confirmed that all 20 living captives have been released in Gaza.

Israel confirms all 20 living captives in Gaza have been released

The carefully choreographed Israel-Hamas exchange is underway, with Israel set to release around 2,000 Palestinian prisoners following the release of remaining hostages held in Gaza. Noga Tarnopolsky reports from Tel Aviv’s Hostage Square.

Israel-Hamas swap begins as 2,000 Palestinian prisoners set for release

Following his visit to Israel, President Trump will stop in Egypt to co-host a major summit in Sharm el-Sheikh alongside Egyptian President Abdel-Fattah el-Sissi. The meeting will bring together leaders from more than 20 countries to discuss efforts toward peace in Gaza and the wider Middle East.

Donald Trump to co-host chair Gaza peace summit in Egypt

The French presidency announced Prime Minister Sebastien Lecornu's new cabinet line-up on Sunday (October 12), with most top jobs remaining unchanged at a time when opponents are demanding a political shift to win their support for urgent budget talks.

Paris

French presidency unveils new cabinet as budget pressure intensifies

Seven captives have been handed over to the Red Cross, who will facilitate their transfer to Israeli forces.

Israeli military says Red Cross has received 7 captives in Gaza

On his way to the Middle East, U.S. President Donald Trump told reporters he expects the ceasefire between Israel and Hamas to hold, despite concerns Hamas won’t abide by the deal.

Trump says the 'war is over', Gaza rebuild to start immediately

China on Sunday (October 12) called U.S. President Donald Trump's latest tariffs on Chinese goods hypocritical and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.

Beijing

Global Tariffs

Beijing blames U.S. for trade tensions, defends rare earth curbs

Afghanistan and Pakistan said they killed dozens of each other's troops during a night of heavy border clashes between the two countries. Afghanistan's Taliban forces launched attacks on Pakistani troops along their shared border in what it called "retaliation for air strikes carried out by the Pakistani army on Kabul".

Chaman

Border clashes between Afghanistan and Pakistan leave dozens dead

A ceasefire between Israel and Hamas held in Gaza for a third day ahead of the expected release of Israeli hostages and Palestinian prisoners and an address by U.S. President Donald Trump to Israel's parliament.

Ceasefire holds in Gaza ahead of hostage release, Trump visit

Zelenskyy called Trump for a second consecutive day to discuss defence and Ukraine's energy sector. It comes as Russia further intensifies its attacks on Ukraine's critical infrastructure ahead of its harsh winter.

Kyiv

Ukraine Invasion

Zelenskyy has second call with Trump amid Russian strikes

On Sunday, the minister of armed forces in Madagascar acknowledged an officer selected by a military group supporting demonstrators calling for President Andry Rajoelina to resign as the country's new army chief.

Madagascar’s president says coup underway

With a trade war between the U.S. and China intensifying ahead of a Nov. 1 tariff deadline, there’s growing concern Beijing will use Taiwan as a bargaining chip.

Taipei City

Growing fear China will use Taiwan to bargain with U.S.

In a televised address ahead of the planned release of Israeli captives and Palestinian prisoners, Israeli Prime Minister Benjamin Netanyahu called for unity despite ongoing divisions.

Netanyahu urges Israel put aside ‘differences’ with Gaza

U.S. President Donald Trump blamed Democrats for his decision to lay off thousands of workers across the U.S. government as he followed through on his threat to cut the federal workforce during the government shutdown.

Trump lays off thousands of U.S. government workers amid shutdown

Thousands gathered in Tel Aviv as 48 of the last remaining hostages are expected home after two years of the Israel-Hamas war. The crowd cheered Donald Trump as the peace deal's broker but there were jeers for Israeli Prime Minister Benjamin Netanyahu.

Tel Aviv braces for hostage release planned for Monday

Diane Keaton, the Oscar-winning star of Annie Hall and The Godfather films, died Saturday at the age of 79, according to U.S. media reports. Entertainment journalist Johanna Schneller remembers Keaton as 'feisty and funny'.

Hollywood

Oscar winner Diane Keaton dead at 79

Former President Biden is now receiving radiation and hormone therapy to treat his prostate cancer, an aide said. The cancer is considered aggressive.

Biden receiving radiation, hormone therapy to treat aggressive cancer

It is unclear how many people were inside the Tennessee plant that exploded on Friday, but at least 16 people were reported on Saturday. Sheriff Chris Davis announced that there are no survivors. Nicole Valdes reports.

Tennessee

No survivors in Tennessee plant explosion, sheriff says

Thousands of pro-Palestinian protesters in London marked two years since the War in Gaza. However, the British government has seen enough. Haley Ott reports that police have been given sweeping powers to curb repeated demonstrations.

London

British Parliament designates Palestine Action a terrorist organization

Middle East Envoy Steve Witkoff has addressed hundreds of thousands of Israelis in what's known as “Hostages Square” in Tel Aviv. Witkoff hailed President Donald Trump for securing the ceasefire. The crowd was less receptive to his praise for Benjamin Netanyahu.

U.S. envoy booed for praising Netanyahu at Tel Aviv rally

A ceasefire is in effect between Hamas and Israel after just over two years of war. An exchange of Israeli hostages and Palestinians held prisoner is set to take place in the coming days, and U.S President Donald Trump is set to visit the region on Monday.

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