WASHINGTON (AP) — After a late-night vote and last-minute ruling, the Federal Reserve began a key meeting on interest rate policy Tuesday with both a new Trump administration appointee and an official the White House has targeted for removal.
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Stephen Miran, a top White House economist who was confirmed by the Senate with unusual speed late Monday, was sworn in Tuesday as a member of the Fed’s board of governors. He will vote on the Fed’s interest rate decision on Wednesday, when the central bank is expected to reduce its key rate by a quarter-point. Miran may dissent in favor of a larger cut.
Also attending the meeting is Fed governor Lisa Cook, whom the Trump administration has sought to fire in an unprecedented attempt to reshape the Fed, which historically is considered independent of day-to-day politics. An appeals court late Monday upheld an earlier ruling that the firing violated Cook’s due process rights. A lower court had earlier also ruled that President Donald Trump did not provide sufficient “cause” to remove Cook.
Stephen Miran testifies during a Senate Banking Committee hearing on his nomination to be a member of the Board of Governors of the Federal Reserve System, on Capitol Hill Thursday, Sept. 4, 2025, in Washington. (AP Photo/Mariam Zuhaib)
With both officials in place, the Fed’s two-day meeting could be unusually contentious for an institution that typically prefers to operate by consensus. It’s possible that as many as three of the seven governors could dissent from a decision to reduce rates by just a quarter-point in favor of a half-point. That would be the first time since 1988 that three governors have dissented. Economists also say that one of the five regional Fed bank presidents who also vote on rates could dissent in favor of keeping rates unchanged.
On Tuesday, the White House said it would appeal Cook’s case to the Supreme Court, though did not specify when.
“The President lawfully removed Lisa Cook for cause,” White House spokesman Kush Desai said. “The Administration will appeal this decision and looks forward to ultimate victory on the issue.”
NEW YORK (AP) — U.S. stocks are hanging around their record heights on Tuesday as the countdown ticks toward what Wall Street expects will be the first cut of the year to interest rates by the Federal Reserve.
The S&P 500 edged down by 0.1%, coming off its latest all-time high. The Dow Jones Industrial Average was down 131 points, or 0.3%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was virtually unchanged.
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Stocks have run to records on expectations that the Fed will announce the first of a series of cuts to rates on Wednesday afternoon in hopes of giving the economy a boost. The job market has slowed so much that traders believe Fed officials now see it as the bigger danger for the economy than the threat of higher inflation because of President Donald Trump’s tariffs.
A report on Tuesday said shoppers increased their spending at U.S. retailers by more last month than economists expected. A chunk of that could simply be due to shoppers having to pay higher prices for the same amount of stuff. But it could also indicate solid spending by U.S. households could continue to keep the economy out of a recession.
The data did little to change traders’ expectations for a cut to interest rates on Wednesday, followed by more through the end of the year and into 2026.
Such high expectations have sent stocks to records, but they can also create disappointment if unfulfilled. That’s why more attention will be on what Fed Chair Jerome Powell says in his press conference following Wednesday’s decision than on the decision itself. Fed officials will also release their latest projections for where they see interest rates and the economy heading in upcoming years, which could provide another potential flashpoint.
For now, global fund managers are tilting their portfolios toward stocks at the highest level in seven months, according to the latest survey by Bank of America. That’s even though a record 58% of them are also saying that stocks look too expensive at the moment.
Steel Dynamics was another winner and climbed 5.1% after it said it’s seeing improved earnings across its three business units. It credited strong demand for steel from the non-residential construction and auto industries, among other things.
Chipotle Mexican Grill added 1.2% after its board said the company could buy back an additional $500 million of its stock. Such a move can send cash directly to investors and boost per-share results.
On the losing end of Wall Street was the Dave & Buster’s entertainment chain, which fell 16.9% after it reported a weaker profit for the latest quarter than analysts expected.
Ralph Lauren sank 2% and got a tepid reception to the unveiling of its long-term financial plan, which it titled “Next Great Chapter: Drive.” As part of it, the company said it expects compounded annual growth over the next three years for revenue to be in the mid-single digit percentages.
New York Times Co. fell 2.9% after Trump filed a $15 billion defamation lawsuit against the newspaper and four of its journalists on Monday. The lawsuit points to several articles and a book written by Times journalists and published in the lead up to the 2024 election as “part of a decades-long pattern by the New York Times of intentional and malicious defamation against President Trump.”
In stock markets abroad, indexes fell in Europe following a mixed showing in Asia.
Japan’s Nikkei 225 added 0.3% to finish at another record. The rally comes despite political uncertainty after Japanese Prime Minister Shigeru Ishiba said he is stepping down. An election within the ruling Liberal Democratic Party to pick a new leader is expected Oct. 4.
In the bond market, the yield on the 10-year Treasury eased to 4.03% from 4.05% late Monday.
AP Business Writers Yuri Kageyama and Matt Ott contributed.
During the winter of 2024, Rachel Martin came to a startling realization: She spent most of her free time staring at screens. “I couldn’t really think of hobbies or things that I did that took a break from the digital world,” she said.
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With pastimes like watching television, playing video games and creating digital art, Martin, 33, sometimes spent more than 12 hours per day looking at screens. She longed for an analog alternative.
After some trial and error, she found one: journaling with fountain pens and specialty inks. “It’s quite a cool tactile experience,” she said, and one that unexpectedly turned social when she started attending meetups for fountain pen enthusiasts in her city of Sydney, Australia.
“It’s something that I definitely didn’t expect to love,” she said, “but that actually really helped me with going (mostly) screen-free.”
Martin had extra motivation for avoiding devices — she has chronic migraines, and screens are a trigger for her — but many people share her goal.
Adopting a new hobby can be an effective way to get a break from screens. (Martin is even looking into selling her TV.) And as an added bonus, enjoyable pastimes can reduce stress and improve mental and physical health, research suggests.
Finding a screen-free hobby that sticks, though, can be easier said than done. Here’s where to start:
A mix of enjoyable activities is fine
Some people feel pressured to find the “ideal” hobby that will perfectly optimize their free time — but there’s no such thing, said Sarah Pressman, a professor of psychological science at the University of California, Irvine who has studied leisure time.
“Having a mix of small enjoyable activities — a little bit of pickleball, cooking something new, chatting with a friend over coffee, spending some time in your garden — can have a cumulative effect on your mood and health,” she said. “So rather than putting pressure on yourself to find the perfect pastime, just ask, ‘What brings me a little joy today?’”
Similarly, hobbies don’t have to fill hours upon hours of time to be beneficial, said Matthew Zawadzki, an associate professor of psychological sciences at the University of California, Merced who has studied hobbies.
Start small by thinking about activities that would be fulfilling for 20, 10 or even five minutes at a time.
“We really need to embrace small engagements with our leisure,” he said, particularly given how many other demands there are on our time.
A pastime may not reset your life, “but instead it’s going to reset the next hour,” Zawadzki said.
Try lots of things
Cast a wide net.
“Test out a few activities for 30 minutes each and just notice how they make you feel,” Pressman said. “Think of it like dating. You may have to go on a few first dates before you find your match.”
Think about how activities you loved as a child could be adapted for adulthood, or about things that you naturally lose track of time while doing, she suggested.
It can also be helpful to consider what you’re missing, or want more of, in your daily routine, Zawadzki said. If you feel too sedentary, try a new form of fitness. If you need to get out of your head, pick up an engrossing book. If you feel starved for social connection, join a club or volunteer. If you haven’t used your creative muscles in a while, pick up a paintbrush.
“It’s about being more intentional about how you use your time,” Zawadzki said.
Ask for recommendations
“It’s hard to think past what we currently do,” Zawadzki said. So, outsource your search.
Just as you’d ask a friend for a book or movie recommendation, ask your loved ones which activities they’d recommend for someone with your interests and tastes. Make sure they’re aware of any financial, time or space constraints, too.
Make your hobbies as accessible as screen time…
If you’re used to spending your evening in front of the TV, it can be hard to put those hours to new use —even once you’ve found a rewarding hobby.
“Screens are so easy,” said Gabriela Tonietto, an associate professor of marketing at Rutgers Business School who has studied leisure time.
So, keep your sketchpad or crossword puzzle in plain sight rather than stored away, Pressman suggested, and flow directly from work or dinner into hobby time before you get distracted by screens.
Setting specific goals (not just, “I want to reduce screen time,” but something like, “I will read for an hour before bed”), carving out designated time for your activity, and enlisting a hobby buddy for accountability can all help you stick to your pastime, Tonietto said.
…but don’t beat yourself up if the screens sometimes win
Screen time isn’t inherently bad, Zawadzki said. Watching a movie with your family can be a bonding activity — especially if you talk about it afterward — and catching up with a juicy TV show on the treadmill may motivate you to exercise.
“Any kind of activity has the potential to be positive,” he said. “But you have to optimize it a little bit to serve your goals,” and set a cap on how much time you spend vegging out.
So don’t be too hard on yourself if you can’t totally quit your screen-based hobbies. They may have some benefits too — and recognizing them is half the battle. Tonietto’s research suggests that viewing leisure time as wasteful can make it less enjoyable and beneficial.
“Step one is actually experiencing that positivity when you engage in these activities,” Tonietto said. “The consequences of that are feeling more relaxed, feeling less stressed, feeling happier.”
By MELANIE LIDMAN, JON GAMBRELL and SAMY MAGDY, Associated Press
JERUSALEM (AP) — Israel launched its offensive in Gaza City on Tuesday, threatening to overwhelm a city already in ruins from nearly two years of raids and bombardment. Vehicles strapped with mattresses and other belongings clogged a coastal road as thousands of Palestinians fled, but hundreds of thousands more remain.
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The operation into the largest Palestinian city further escalates a conflict that has roiled the Middle East and likely pushes any ceasefire farther out of reach. The military wouldn’t offer a timeline for the offensive, which it says aims to “destroy Hamas’ military infrastructure,” but Israeli media suggested it could take months.
It began the same day that independent experts commissioned by the United Nations’ Human Rights Council accused Israel of committing genocide in Gaza. Israel rejected the allegation, calling the report “distorted and false.”
Israeli Defense Minister Israel Katz declared that “Gaza is burning” as the operation began. Heavy bombardment battered the city overnight and into the morning.
One woman, Saud al-Sakani, said her daughter, son-in-law and their children were killed in a strike that flattened their home with about 40 people inside. “An entire family!” she cried, weeping over their bodies at Shifa Hospital’s morgue. “Many are still under the rubble.”
On a brief visit to the region, U.S. Secretary of State Marco Rubio warned that there was a “very short window of time in which a deal can happen” to end the war.
Israel also bombed Yemen’s port city of Hodeida in response to drone and missile fire from Iran-backed Houthi rebels, who say they are acting in solidarity with the Palestinians.
Smoke rises to the sky following an Israeli military strike in the Gaza Strip, as seen from southern Israel, Monday, Sept. 15, 2025. (AP Photo/Leo Correa)
Displaced Palestinians flee northern Gaza by foot and in vehicles, carrying their belongings along the coastal road toward southern Gaza, Monday, Sept. 15, 2025. (AP Photo/Abdel Kareem Hana)
An Israeli armored vehicle moves along the Israeli-Gaza border as seen from southern Israel, Tuesday, Sept. 16, 2025. (AP Photo/Leo Correa)
An Israeli army flare drifts over buildings destroyed during the Israeli ground and air operations in the northern Gaza Strip, as seen from southern Israel, Monday, Sept. 15, 2025. (AP Photo/Leo Correa)
An Israeli armored vehicle moves along the Israeli-Gaza border as seen from southern Israel, Tuesday, Sept. 16, 2025. (AP Photo/Leo Correa)
An Israeli soldier prays at a staging area on the border with Gaza Strip, as seen from southern Israel, Tuesday, Sept. 16, 2025. (AP Photo/Leo Correa)
Displaced Palestinians flee northern Gaza along the coastal road toward the south, after Israel’s military says its expanded operation in Gaza City has begun and warns residents to leave, Tuesday, Sept. 16, 2025. (AP Photo/Abdel Kareem Hana)
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Smoke rises to the sky following an Israeli military strike in the Gaza Strip, as seen from southern Israel, Monday, Sept. 15, 2025. (AP Photo/Leo Correa)
Israeli forces have carried out multiple large-scale raids into Gaza City over the course of the war, causing mass displacement and heavy destruction, only to see fighters regroup later. This time, Israel has vowed to take control of the entire city, which experts say is experiencing famine.
An Israeli military official, speaking on condition of anonymity in line with military guidelines, said that the “main phase” of the Gaza City operation had begun. Airstrikes have pounded Gaza City for weeks, knocking down several high-rises.
The official said the Israeli military believes there are approximately 2,000 to 3,000 Hamas fighters left in Gaza City, as well as tunnels used by the group. Hamas’ military capabilities have been vastly diminished over nearly two years of war, and nowadays it mainly carries out guerrilla-style attacks, with small groups of fighters planting explosives or attacking military outposts before melting away.
Ismail Zaydah, 39, said he fled from his home in Gaza City’s Sheikh Radwan neighborhood to an area near the coastal road. He said trucks carrying people south to an Israeli-designated humanitarian zone charge around $1,000, even as many families in Gaza City are starving.
“We fled with nothing but a few pieces of clothing. People are pitching their tents in western Gaza City, and they are sleeping among human waste because there is no place for them to go,” he said.
An estimated 1 million Palestinians were living in the Gaza City region before warnings to evacuate began ahead of the offensive, and the Israeli military estimates 350,000 people have left the city.
A U.N. estimate on Monday, however, said that over 220,000 Palestinians have fled northern Gaza over the past month.
By the end of the current operation, an Israeli military graphic suggested its troops hope to control all of the Gaza Strip except for a large swath along the coast.
At least 69 Palestinians killed in Gaza City
Palestinian residents reported heavy strikes across Gaza City on Tuesday morning, with hospitals in the city saying there were at least 69 deaths.
“A very tough night in Gaza,” Dr. Mohamed Abu Selmiya, the director of Shifa Hospital, told The Associated Press. “The bombing did not stop for a single moment.”
Several women gathered at the hospital’s morgue, where AP footage showed many dead in body bags.
Shifa received the bodies of 49 people, including 22 children, according to Dr. Rami Mhanna, a hospital official, who said dozens of wounded had also come into the facility. Al-Ahli Hospital received 17 bodies, and Al-Quds three.
The Israeli military did not immediately respond to requests for comment on the deadly strikes but in the past has accused Hamas of building military infrastructure inside civilian areas.
The war in Gaza began when Hamas-led fighters stormed into southern Israel on Oct. 7, 2023, killing around 1,200 people, mostly civilians, and abducting 251. Forty-eight hostages, fewer than half believed to be alive, remain in Gaza.
Israel’s retaliatory offensive has killed more than 64,900 Palestinians, according to Gaza’s Health Ministry, which doesn’t say how many were civilians or combatants. The ministry, which is part of the Hamas-run government and staffed by medical professionals, says women and children make up around half the dead.
Families of hostages beg Netanyahu to halt the operation
Overnight, families of the hostages still being held in Gaza gathered outside of Prime Minister Benjamin Netanyahu’s residence, imploring him to stop the offensive.
“Netanyahu gave the order to bomb my child,” said Anat Angrast, whose son is held in Gaza. “He knows that Matan is in immediate danger due to the Gaza operation, yet he decided to bomb him to death. He is the only one who will decide whether Matan lives or dies.”
Israel believes around 20 of the hostages are alive. Hamas has said it will only free remaining captives in return for Palestinian prisoners, a lasting ceasefire and an Israeli withdrawal from Gaza.
On a visit to Israel, Rubio suggested that there might still be time for a negotiated end the war.
“At some point, this has to end. At some point, Hamas has to be defanged, and we hope it can happen through a negotiation,” he said. “But I think time, unfortunately, is running out.”
Rubio thanked Qatar, which has been a key negotiator in efforts to reach a ceasefire, for playing that role, according to a statement from his office, which did not directly acknowledge the Israeli strike. He also highlighted the countries’ close ties.
Egypt, which has had a peace deal with Israel for decades and has also served as a mediator in the war, appears to be losing its patience.
Egypt’s president, Abdel-Fattah el-Sissi, described Israel as “an enemy” in a fiery speech at the Qatar summit Monday. It was the first time an Egyptian leader used the term since the two countries established diplomatic ties in 1979, said Diaa Rashwan, head of Egypt’s State Information Service.
Egypt was the first Arab country to establish ties with Israel and their peace treaty is seen as a cornerstone for stability in the volatile region.
El-Sissi’s “enemy” comment played prominently across Egyptian newspapers’ front pages on Tuesday and while Cairo has taken no steps to change its status with Israel, the Egyptian government likely is trying to signal just how seriously it takes Israel’s recent actions.
Gambrell reported from Dubai, United Arab Emirates, and Magdy from Cairo. Associated Press writers Matthew Lee in Munich, Germany, and Josef Federman in Jerusalem contributed to this report.
