Federal Reserve Bank of Minneapolis President Neel Kashkari warned that drastic interest rate cuts could spark a surge in inflation. Speaking at a panel on AI and the economy, he cautioned that rapid rate reductions risk overheating the U.S. economy.

Minneapolis

Minneapolis Federal Reserve President Neel Kashkari has warned that lowering interest rates below the neutral level without sufficient justification could result in a burst of high inflation. Kashkari explained that driving the economy faster than its growth potential would likely cause prices to rise broadly, undermining the Fed's goal of stable prices.

He highlighted the Federal Reserve's dual mandate from Congress: maintaining stable prices, targeting 2% inflation, and achieving maximum employment. Kashkari stressed that the Federal Open Market Committee is committed to making decisions based on economic data and analysis, rather than political considerations.

Kashkari warns rate cuts could trigger burst of inflation

If the Fed drastically lowered interest rates below where the neutral rate was, and it wasn't justified for the reasons that I just described, what we would expect to see happen is you'd expect to see the economy have a burst of high inflation. Basically, if you try to drive the economy faster than its potential to grow and its potential to produce, prices end up just going up across the economy. So we have this thing that we talk about a lot called a dual mandate that Congress told us. Congress created the Fed and Congress assigned us our goals. One of our goals is stable prices, 2% inflation. The other one is maximum employment. If we were to cut interest rates dramatically beyond what is justified based on the economics, you would then see probably a very low unemployment rate and very high inflation as the economy was effectively overheating. But the other thing is, we are a committee. So there are 12 Federal Reserve Banks, there are seven Federal Reserve Governors, the Federal Open Market Committee, that ultimately set interest rates. And the committee as a whole, I believe, is absolutely committed to making decisions based on data and analysis, not on political considerations.

National Guard troops are preparing to be deployed to Chicago. Members of the Texas National Guard arrived just outside the city on Tuesday. The move is being criticized as an abuse of presidential authority.

Chicago

National Guard troops preparing to deploy in Chicago

The Trump administration is $2,500 money to undocumented minors to self-deport. Lawyers have criticised the move, saying children aren't mature enough to make that decision.

Washington

Trump admin offers cash to migrant teens who self-deport

U.S. President Donald Trump welcomed Canadian Prime Minister Mark Carney to the White House, where he promised to treat Canada fairly in trade talks, but was less committed to a continental trade deal that also includes Mexico.

Global Tariffs

Trump promises trade fairness for Canada during Carney's visit

From Tel Aviv to the Nova Music Festival site, Israelis gathered to remember those who were killed in the October 2023 Hamas attack.

Tel Aviv-Yafo

Middle East Conflict

Israelis remember victims two years after Hamas attack

Saudi Arabia's Riyadh Comedy Festival is attracting global stars including Dave Chappelle, Pete Davidson and Kevin Hart, with reports that some are being paid more than $1 million each. The event is part of Crown Prince Mohammed bin Salman's push to rebrand the conservative kingdom through sports and entertainment.

Riyadh

Riyadh Comedy Festival draws top U.S. comedians amid controversy

Three U.S.-based scientists have won the Nobel Prize in physics for their work on quantum mechanics. The physics award is the second 2025 Nobel Prize to be announced this week.

Stockholm

Three U.S.-based scientists win Nobel Prize in physics

As the war in Gaza reaches its two-year mark, Israel and Hamas continue negotiations in Egypt. Talks are centered on a proposed ceasefire deal, which includes a partial Israeli withdrawal from Gaza and a hostage-prisoner exchange.

Cairo

Israel and Hamas resume Gaza ceasefire talks in Egypt

Israel has deported activist Greta Thunberg along with 170 others who were detained after Israeli forces intercepted a flotilla attempting to deliver aid to Gaza last week. Some of those deported in recent days have reported mistreatment, allegations that Israel has denied.

Israel deports Greta Thunberg after Gaza Flotilla interception

Leaders in the U.S. state of Illinois are taking President Donald Trump to court, looking to stop the deployment of hundreds of National Guard troops to the streets of Chicago. The White House argues that soldiers are needed to prevent so-called lawlessness.

Chicago declares 'ICE Free Zones' amid clashes over raids

French President Emmanuel Macron has given Prime Minister Sebastien Lecornu 48 hours to stabilize the government following his sudden resignation. Lecornu stepped down hours after naming his cabinet, amid criticism and growing political instability in a parliament without a clear majority.

Paris

Macron gives Lecornu two days to salvage government after resignation

Microchip maker AMD got a huge boost in the race to supply the artificial intelligence revolution. OpenAI, the company behind major AI platform ChatGPT, announced a deal for AMD to provide the AI startup with its high-performance processing chips starting next year.

Santa Clara

Rise of AI

AI chipmaker AMD strikes major deal with OpenAI

It's a race against time to save the remaining 200 or so stranded climbers on Mount Everest after a massive storm dumped at least three feet of snow over the weekend.

Gorakshep

About 200 Mount Everest climbers still stranded

Clashes broke out at ICE facilities in Chicago and Portland after President Trump ordered National Guard troops into both cities. The move has intensified tensions between federal authorities and local officials amid ongoing protests.

Clashes erupt as Trump deploys National Guard

Former NFL quarterback and Fox Sports analyst Mark Sanchez was charged with felony battery involving serious bodily injury, and could face up to six years in jail, according to Marion County Prosecutor Ryan Mears.

Indianapolis

Mark Sanchez charged with felony, could face up to 6 years in jail

Illinois Gov. JB Pritzker and Chicago Mayor Brandon Johnson announced on Monday a lawsuit against the Trump administration over plans to deploy the National Guard to Chicago.

Illinois, Chicago sue Trump over National Guard deployment

A selloff in French markets gathered pace after French media reports that Prime Minister Sebastien Lecornu has resigned. French stocks fell sharply, government bond yields were up 8 basis points and the euro was last down 0.65% at $1.1667.

French markets tumble after PM Lecornu resigns

Former NFL quarterback Mark Sanchez has been charged with battery, intoxication, and unlawful entry after allegedly attacking a 69-year-old truck driver in Indianapolis. The driver stabbed Sanchez in self-defense, believing his life was in danger. Sanchez is currently hospitalised.

Ex-NFL star Mark Sanchez faces criminal charges in alleged assault

U.S. President Donald Trump's battle with Democratic-led cities is heating up after 200 California National Guard troops have been reassigned to Oregon, despite a judge blocking the deployment to Portland.

Portland

Trump sends National Guard to Oregon despite court block

Israeli planes and tanks pounded areas across the Gaza Strip overnight and on Sunday, destroying several residential buildings, witnesses said, as Palestinians hoped a U.S. plan to end the war would soon ease their suffering.

Jerusalem

Israeli strikes on Gaza continue ahead peace talks

Amenhotep III ruled between 1390 and 1350 BC and was one of the most prominent pharaohs of ancient Egypt.

Pharaoh's tomb reopened after more than 20 years of renovations

President Trump has thrust the U.S. military into a critical role deterring illegal crossings into this country at the southern border. As Charlie D'Agata reports, their presence is having unintended consequences.

Santa Teresa

U.S. military presence at southern border angers hunters, hikers

A new CBS News poll shows a majority of Americans disapprove of how President Trump and congressional Republicans and Democrats have handled the government shutdown. Willie James Inman reports on that and Mr. Trump's latest National Guard moves.

Americans fed up with shutdown, poll finds

Negotiators between Hamas and Israel will begin meetings in Cairo on Monday (October 6) for the release of the remaining 20 hostages and a prisoner swap.  There is a lot of pressure on both sides to get a deal done.

Negotiations between Israel, Hamas set to begin

Japan's ruling party picked hardline conservative Sanae Takaichi as its head on Saturday, putting her on course to become the country's first female prime minister in a move set to jolt investors.

Tokyo

Right-wing Sanae Takaichi set to be Japan's first female premier

For a second day, Israel is launching more strikes on the Strip defying demands from the U.S. to stop attacks. At least 61 Palestinians were killed in attacks across the Strip.

Israel intensifies Gaza bombardment despite U.S. pressure to stop

Israeli Prime Minister Benjamin Netanyahu says he hopes to announce the release of all the hostages being held by Hamas in Gaza in one fell swoop in the coming days.

Netanyahu: Gaza peace deal is 'close'

The government shutdown reached its fourth day on Saturday. The Senate on Friday went home after another failed vote to keep the government open. Willie James Inman has the latest.

No signs of compromise as government shutdown continues

Tensions are high in Portland, Oregon, as National Guardsmen could possibly be deployed there as early as this weekend. Federal agents and demonstrators squared off again, but Portland's mayor and chief of police say they don't need the help.

Protests in Portland as National Guard mobilizes

“I believe they are ready for a lasting peace.” the U.S president wrote on social media after Hamas announced it was willing to release the hostages and hand over power to other Palestinians.

Trump urges Israel to stop bombing Gaza after peace breakthrough

Israel slowed its Gaza offensive on Saturday after U.S. President Donald Trump demanded it stop bombing in response to Hamas saying it was ready to free hostages under the U.S. plan to end the two-year-old war.

Breakdown