The Federal Reserve is expected to announce an interest rate cut decision during its meeting on Wednesday. CBS News MoneyWatch correspondent Kelly O'Grady has more details.

Washington

The Federal Reserve has begun a two-day meeting, with strong expectations from investors that a quarter-point interest rate cut will be announced. Analysts are closely watching for comments from Fed Chair Jerome Powell, particularly regarding the impact of a recent government shutdown on economic data collection and future policy decisions. The meeting also comes amid ongoing concerns about rising inflation and signs of weakness in the labor market. 

Additionally, Amazon has announced plans to cut 14,000 corporate jobs, citing efforts to streamline bureaucracy and invest in growth areas such as artificial intelligence. Despite the layoffs, Amazon is hiring 250,000 seasonal workers, and experts note that while automation and AI may replace some jobs, they are also expected to create new opportunities that will require workforce upskilling.

Federal Reserve likely to cut interest rates

We're also tracking the Federal Reserve kicking off its two-day meeting that starts today And the big question of course is whether the Fed will make a decision to cut interest rates again So let's talk about this with our money expert CBS News money watch correspondent Kelly O'Grady in New York Always good to see you Kelly. So what are you expecting out of this Fed meeting? So I just looked at the odds We are looking at a 98% chance that investors are baking in that we are gonna get a quarter point rate cut tomorrow Now I think the biggest thing sort of so what coming out of the meeting is not going to be whether the Fed cuts interest Rates, but it's going to be in the press conference afterwards when we're going to be able to hear from Fed chair Jerome Powell and there are a couple of things that I'm looking for one How much of an impact is this government shutdown and the lack of the traditional data? That they are used to using in order to inform those decisions How much did it play in this particular one? But also going forward because remember we've been shut down for a number of weeks They haven't been able to gather data that they would utilize going forward for making future interest rate decisions So that's one thing the second thing is what's the bigger concern the fact that inflation continues to tick up or some of the weakness that we've seen in the labor market and then finally We don't get Specifics this time around about where or other how many cuts the Fed expects through the rest of the year and next year as well But we will get to see the split in terms of who voted for a rate cut who voted against it And so I think that Dynamic will be really interesting because last time around we saw that the Fed was pretty divided in how to handle interest rates going forward That's sure to be a headline. Also. There's a headline. I wanted to ask you about today Kelly and that's Amazon making very clear that they're gonna cut 14,000 jobs But you have some pretty important perspective and context on who this will affect who it won't affect and also I'm pretty Fascinated about your thoughts about how AI could impact our future and how this could be sort of a calling card about that So whenever you hear layoffs, especially something of that magnitude 14,000 it's never good. But this is also happening at the same time that Amazon is adding 250,000 holiday seasonal workers So this by no means does it mean that Amazon is in trouble or that consumers aren't spending? Amazon came out today and said look this is coming from the corporate area they say that they have too many layers of bureaucracy and they want to get rid of some of that and then Invest some of those resources into areas that they see as growth platforms for them. So think artificial intelligence I went to I think actually some of the video that's on the screen right now one of the most Technologically advanced Amazon warehouses in the country and they told me that yes AI artificial intelligence Automation it's going to take some jobs, but it's also going to create new opportunities that didn't exist before So read to your point of what does this mean for the overall job market and what AI might do? This is sort of a watershed moment where you are seeing companies like Amazon like others come out and those corporate roles those roles that could Be impacted by AI. I think this is just the beginning of the iceberg But the hope is that that does create new opportunities that we'll need to upskill for But that will be available in the future Important reporting Kelly O'Grady not only giving us all of that data, but going to where the sausage is made so to speak Thank you so much. Good to talk to you friend

President Trump weighed in on the deadly shooting involving an ICE officer in Minneapolis, Minnesota, on Wednesday. CBS News' Willie James Inman reports.

Minneapolis

Trump claims woman shot by ICE in Minneapolis was “very disorderly”

President Trump plans to meet with Colombian President Gustavo Petro after Mr. Trump issued threats following the U.S. operation in Venezuela that led to the capture of Nicolás Maduro. CBS News' Lilia Luciano reports from Bogotá.

Trump to meet Colombia’s Petro after tensions over Venezuela operation

The United Kingdom aided the U.S. in an operation to seize a sanctioned oil tanker linked to Venezuela in the North Atlantic. CBS News' Ramy Inocencio reports.

UK helped the U.S. seize an oil tanker linked to Venezuela

U.S. forces on Wednesday seized two oil tankers, one in the North Atlantic and the other in the Caribbean, as part of the Trump administration's blockade of Venezuela's oil exports. Secretary of State Marco Rubio said the U.S. will take between 30 million and 50 million barrels of oil and sell it in the marketplace.

U.S. to control money from Venezuela oil sales after tanker seizures

Nick Reiner was set to be arraigned on murder charges on Wednesday in the killing of his parents Rob and Michele Reiner. But his defense attorney, Alan Jackson, told the judge he could no longer represent the 32-year-old. After the hearing, Jackson said he couldn't say why he withdrew for legal reasons, but added, "Nick Reiner is not guilty of murder."

Los Angeles

Nick Reiner's lawyer withdraws from case, says Reiner 'is not guilty'

NASA is considering a rare early return of its crew from the International Space Station over an unspecified medical issue involving one of the astronauts, after canceling a planned spacewalk that had been scheduled for Thursday (January 8), the agency said.

NASA mulls early ISS crew return due to astronaut medical issue

Washington says it has intercepted two Venezuela-linked oil tankers in the Atlantic as part of President Trump’s hardline effort to control oil movements across the Americas, claiming the vessels were part of a so-called shadow fleet used to ship sanctioned crude from Venezuela and Iran.

UK helped U.S. military to seize sentenced oil tanker on way to Russia

Minneapolis erupts in protests after a woman is shot by a federal agent – Video of the incident sparks outrage nationwide.

ICE shoots woman: Incident sparks protests across the U.S.

President Masoud Pezeshkian has urged security forces to show restraint, distinguishing peaceful protesters from armed rioters. However, rights group Iran Human Rights says at least 27 protesters have been killed, while Iranian media report 15 deaths, including members of the security forces.

Tehran

Iran police officer killed as cost-of-living protests enter 12th day

The decision comes as Trump approaches the first anniversary of his second term. Since returning to office, he has already moved to exit the World Health Organization, the Paris climate agreement, and UNESCO, while cutting funding to several UN bodies.

Trump orders U.S. withdrawal from 66 international organisations

Iran's army chief threatened pre-emptive military action on Wednesday over the "rhetoric" targeting the country, thought to be in reference to threats made by US President Donald Trump last week, warning that if Tehran "violently kills peaceful protesters," Washington would "come to their rescue."

Iran army chief threatens pre-emptive attack after Trump threats

U.S. forces have boarded a Venezuela-linked sanctioned oil tanker in the North Atlantic after pursuing it for weeks. The U.S. military also announced the seizure of a sanctioned tanker ship in the Caribbean Sea, the second vessel taken by American forces on Wednesday.

Venezuela Strikes

U.S. seizes two more sanctioned oil tankers with links to Venezuela

A woman was fatally shot by an ICE officer Wednesday morning in Minneapolis, the Department of Homeland Security says. CBS News' Nicole Sganga reports from the scene.

Protesters gather after ICE shoots and kills woman in Minneapolis

The U.S. seized a Russian-flagged oil tanker that was being shadowed by a Russian submarine on Wednesday (Jan. 7), after a more than two-week-long pursuit across the Atlantic as part of a U.S. "blockade" of Venezuelan oil exports.

U.S. seizes Venezuela-linked oil tanker after weeks-long pursuit

Nick Reiner, the son of Rob and Michele Reiner, is set to be arraigned in the killing of his parents, Rob Reiner and Michele Singer Reiner. It comes as details emerge about his time in custody and how his mental health history could play a role in his case.

Nick Reiner due in court on murder charges

Flights across France and Belgium and Eurostar train services have been severely disrupted by the winter weather.

Paris

Eurostar trains and hundreds of flights cancelled amid heavy snowfall

President Masoud Pezeshkian on Wednesday urged security forces to distinguish between what he called rioters and protesters, urging them not to target peaceful demonstrators.

Iran's President urges security forces not to target protesters

In Iran, protests that broke out on December 28th over the soaring cost of living look set to continue. Security forces fired tear gas at demonstrators in Tehran's Grand Bazaar on January 6: without giving numbers, Iran's IRNA news agency said 'some' people were arrested.

Death toll rises as Iran's security forces clash with protesters

Members of the North Atlantic Treaty Organization (NATO) are reacting to the Trump administration's comments on a potential Greenland takeover from Denmark.

Nuuk

European leaders blast Trump over Greenland takeover discussions

Donald Trump says Venezuela will hand over as much as 50 million barrels of oil and he will control the profits.

Trump says Venezuela will turn over 30-50 million barrels of oil

Britain and France have said they could send troops to Ukraine if a ceasefire is agreed. The pledge came at a Paris meeting of 30 nations, including the US, on security guarantees demanded by Kyiv before any peace deal.

London

Ukraine Invasion

UK, France ready to deploy troops in Ukraine after ceasefire

Colombian President Gustavo Petro said he would “take up arms” in the face of threats issued by US President Donald Trump.

Bogotá

Colombia vows to defend its sovereignty amid Trump’s military threats

Israeli forces storm Birzeit University in the occupied West Bank soon after students begin a sit-in in solidarity with jailed Palestinians.

Jerusalem

Middle East Conflict

Israeli school assault wounds dozens of Palestinians in West Bank raid

The White House says U.S. President Donald Trump and his team are considering a range of options in efforts to acquire Greenland as the ouster of Venezuelan leader Nicolás Maduro continues to reverberate in the Western Hemisphere.

Trump sees acquiring Greenland as a national security priority

The United States for the first time backed a broad coalition of Ukraine's allies in vowing to provide security guarantees that leaders said would include binding commitments to support the country if it is attacked by Russia again.

U.S. backs security guarantees for Ukraine at summit of Kyiv's allies

South African President Cyril Ramaphosa has expressed deep concern over recent U.S. military action in Venezuela, calling for the immediate release of Venezuelan President Nicolás Maduro and his wife.

Soweto

Ramaphosa urges UN action after U.S. capture of Maduro

At least 25 people have been killed in Iran during the first nine days of protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups. This video contains graphic images.

Rights groups say at least 25 dead in Iran protests

The administration of President Donald Trump is planning to meet with executives from U.S. oil companies later this week to discuss boosting Venezuelan oil production after U.S. forces ousted its leader Nicolas Maduro, according to a source familiar with the matter.

Trump administration sets meetings with oil firms on Venezuela: source

Uncertainty in Venezuela has crossed into neighboring Colombia, especially after U.S. President Donald Trump suggested Colombian President Gustavo Petro could face U.S. action following the capture of Nicolás Maduro.

Tension rises in Colombia after Maduro’s capture

Nicolas Maduro appeared in a US courtroom on January 5, 2026. He pleaded "Not Guilty" to drug trafficking and other charges, insisting he is still Venezuela's president. Maduro's kidnapping is being justified by the Trump administration as a "surgical law enforcement operation", but what proof is the case resting on?

Breakdown