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Year: 2026

What Trump’s next pick to lead the Federal Reserve means for your wallet

What Trump’s next pick to lead the Federal Reserve means for your wallet

No institution has more influence over what Americans can afford than the Federal Reserve, one most people rarely follow but feel every month in their finances. That influence isn’t always obvious. The Fed doesn’t decide what groceries or cars cost, but it does determine how expensive it is to borrow money to pay for them. And right now, borrowing is costly. High interest rates mean larger monthly payments on mortgages, car loans and credit cards, even if the sticker price of a home or vehicle hasn’t changed. That makes the Fed’s leadership especially consequential. On Friday, President Donald Trump nominated Kevin Warsh to succeed Federal Reserve Chair Jerome Powell, a move that could alter how aggressively the central bank approaches interest rates. TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIR. Trump has blamed Powell for not cutting rates more aggressively, even as he has repeatedly described the economy as strong. Historically, rate cuts have usually been reserved for times of economic weakness, not growth. That disagreement over rates has real-world consequences. For many Americans, the effects are most visible in the housing and auto markets, two of the biggest expenses for most families. You’re not paying more because the home or car suddenly costs more. You’re paying more because the money to buy it does. Those elevated borrowing costs are acting like a form of second inflation, pushing mortgages, car loans and credit card bills to levels that stretch household budgets thin. That’s why everyday life can still feel more expensive. Prices may not be climbing as quickly anymore, but the cost of paying for big purchases continues to rise. THE PRICE OF BUILDING A HOME KEEPS CLIMBING — AND UNCERTAINTY ISN’T HELPING Economists say affordability will not meaningfully improve until the Fed begins cutting rates and keeps them low long enough to ease pressure on long-term borrowing. That backdrop has become a political liability for Trump, who campaigned on restoring affordability and easing household financial strain but now faces growing voter skepticism over whether those promises are materializing. A recent Fox News poll underscores the stakes. When voters were asked what President Donald Trump’s top priorities should be, nearly four in 10 cited either the economy overall (19%) or prices (17%). Affordability concerns are also giving Democrats an early edge in the generic congressional ballot, which asks voters which party they would support in their U.S. House race this November. While largely hypothetical at this stage, the question offers an early baseline for the coming election, according to Republican pollster Daron Shaw, who said the poll is an early read, not a forecast.  “We ask about it at this point simply to get a sense of how short-term forces might play out in the general election,” Shaw said. YEAR IN REVIEW: HOW PRESIDENT TRUMP’S ECONOMIC AGENDA IS SHAPING UP SO FAR Democrats leaned heavily on affordability themes in state and local elections this fall, and it paid off. In places like Virginia, New York and New Jersey, where voters have been squeezed by high housing costs and utility bills, Democratic candidates seized on Trump’s early economic moves, including his trade policy, to argue that his policies were worsening the affordability crisis rather than easing it. They promised to rein in energy costs, expand affordable housing and protect middle-class wages, a message that resonated with voters and, analysts say, reflects a broader trend. In an economy where many still feel stretched thin, the party that speaks most directly to people’s pocketbooks often wins. The Fed’s decision about rate cuts will shape the economy’s trajectory and how affordable life feels for millions of Americans in the new year.

Potential Walz successor unleashes on state’s sanctuary policies: ‘The rule of law matters’

Potential Walz successor unleashes on state’s sanctuary policies: ‘The rule of law matters’

EXCLUSIVE: Minnesota GOP gubernatorial candidate Patrick Knight slammed Gov. Tim Walz and other leading Democrats, saying the state is “cratering” under their leadership as they treat the law like a “buffet.” In an interview with Fox News Digital, Knight criticized the sanctuary policies in his state, saying, “The law is not a buffet table where you just pick and choose which laws you’re going to enforce today and which laws you’re going to ignore.” “The rule of law matters,” he said.   A Marine veteran of 20 years and a former manufacturing CEO, Knight is one of nearly a dozen candidates running for the Republican nomination to succeed Walz in the Minnesota governor’s mansion. TIM WALZ ACCUSES TRUMP OF ‘ORGANIZED BRUTALITY’ IN IMMIGRATION CRACKDOWN, SAYS ICE TACTICS ARE ‘UN-AMERICAN’ His decision to run comes as the state is reeling from a recently exposed massive fraud scandal, involving state programs, that is believed to have cost taxpayers billions of dollars. The fraud crisis, which saw heavy involvement from Minnesota’s Somali immigrant community, prompted a federal immigration crackdown that has in turn sparked widespread unrest. Two anti-ICE activists, Renee Good and Alex Pretti, both 37, have been killed by federal officers during confrontations with law enforcement. Addressing these deaths, Knight said, “The loss of any life is tragic, and there should be a full and transparent investigation with both the state and the federal government participating and let the facts drive the accountability.” Knight went on to say that for too long the people of Minnesota have been “the ones picking up the pieces” left by irresponsible state and local leadership. “Things could have been easier as they are in other states,” he said. “When the federal government, in a reasonable manner, enforces immigration law and the city and state cooperate, that’s when it works. It’s when egos get involved and political theatrics get involved where it spins out of control.” DEMOCRATS DIG IN ON IMMIGRATION ENFORCEMENT, THREATENING GOVERNMENT SHUTDOWN “When Gov. Walz testified before Congress, he stated openly that he would, the state would cooperate with ICE. And then, two weeks later, he is at the University of Minnesota Law School graduation where he is calling ICE the ‘modern day Gestapo.’” Connecting this to a broader pattern of Walz and other Minnesota politicians prioritizing politics over the people, saying, “Minnesota is cratering on the fundamentals.” “We’re just going on the wrong way on every, not just some, every fundamental. Crime, education, economy, affordability, not to mention good governance,” he said. “For the past six years, we’ve just been the center of political theater. We just can’t escape it, and I think Minnesotans are tired of it, I certainly am, and we need to just focus on fixing the basics, the fundamentals.” Knight frames his platform around a five-point plan he jokingly titled the “big, beautiful, basic, boring” plan that focuses on the economy, affordability, education, rule of law and building a smaller, more efficient state government. LEAVITT SAYS TRUMP SPOKE TO WALZ, DEMANDS MINNESOTA ‘WORK TOGETHER PEACEFULLY’ WITH ICE: ‘LET COPS BE COPS’ His argument is that the North Star State has lost its way and now needs to move away from the excitement of the current political climate to focus on the basics and ending the fraud. “It’s a cultural issue that needs to be changed and it starts at the top.” “I say it’s a simple fix,” Knight concluded. “Get a strong, competent governor.”

Dems score big in typically red Texas district that Trump easily won in 2024

Dems score big in typically red Texas district that Trump easily won in 2024

Democrats notched another special election upset Saturday after Taylor Rehmet won a Texas state Senate race in a district long dominated by Republicans. Rehmet, a labor union leader and Air Force veteran, defeated Republican Leigh Wambsganss, a conservative activist, in the Fort Worth-area district. With nearly all votes counted, Rehmet led by more than 14 percentage points, and The Associated Press projected him as the victor. “This win goes to everyday working people,” Rehmet told supporters. The result marked another strong showing for Democrats in special elections this cycle, fueling party claims that voters are pushing back against Republicans during President Donald Trump’s second term. Democratic National Committee Chairman Ken Martin called the outcome “a warning sign to Republicans across the country.” WHY 2026 SHOULD TERRIFY REPUBLICANS AFTER TENNESSEE SPECIAL ELECTION The seat opened after longtime GOP Sen. Kelly Hancock resigned to take a statewide post. Republicans had held the district for decades, and Hancock won four terms with little opposition. The district is even more Republican than its home county of Tarrant. Trump won the county by five points in 2024, but carried the district with a 17-point victory. Trump weighed in on the race Saturday, urging voters to back Wambsganss on social media and praising her as a strong supporter of the MAGA movement. Rehmet, however, benefited from heavy national Democratic backing, including support from the DNC and veterans group VoteVets, which said it spent about $500,000 on advertising. DEMOCRATIC STRATEGIST SAYS TENNESSEE NOMINEE WAS ‘FRINGE OF A FRINGE,’ DOOMED PARTY’S CHANCES Rehmet, who works as a machinist, campaigned on lowering costs, protecting jobs and supporting public education. Democrats have gained momentum in elections since Trump returned to the White House, winning high-profile races in Virginia and New Jersey in November and special elections in Kentucky and Iowa. Even in a recent Tennessee House special election, Republicans won by a slimmer margin than expected. Rehmet’s term will run only until January. He must win the November general election to hold the seat for a full four-year term. Republicans will still maintain a comfortable majority in the Texas Senate,. The Associated Press contributed to this report.