By FATIMA HUSSEIN, Associated Press

WASHINGTON (AP) — The Federal Reserve is expected to cut short-term rates in 2026, with its key interest rate settling at 3.4% towards the end of President Donald Trump’s term in office in 2028, according to a new report released Thursday by the nonpartisan Congressional Budget Office.

Despite the Fed’s cuts, however, the budget office projects the yield on 10-year Treasury notes to increase gradually, from 4.1% in the fourth quarter of 2025 to 4.3% in the fourth quarter of 2028. The 10-year Treasury yield is a benchmark for mortgage rates, so the forecast suggests mortgage borrowing could get more expensive over the next two years.

The CBO on Thursday released new economic projections for the next three years, taking into account Trump’s tariffs, immigration policies and last year’s federal government shutdown, among other factors.

“Together, those adjustments affected the near-term path of GDP, employment, and inflation but did not materially change the overall economic outlook through 2028,” the report states.

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Jobless rates are expected to increase before they improve over the next two years, the report states.

The CBO expects the unemployment rate to peak at 4.6% in 2026 but then ease to 4.4% in 2028 — affected largely by the impacts of Trump’s tax and spending law, passed by Congress and signed in July, as well as fewer migrants in the country.

Also, the budget office projects that real gross domestic product growth is expected to rise to 2.2% in 2026, supported by the tax and spending law and a rebound from the late-2025 shutdown. GDP growth is then set to slow to an average of 1.8% in 2027 and 2028 as fiscal support wanes and labor force growth slows. The forecasts are similar to those made by the Federal Reserve, though the Fed expects growth will reach 2% in 2027 and 1.9% in 2028.

Last September, when the CBO released an updated three-year outlook, it issued the same projection for GDP growth for the next three years.

Inflation is expected remain above the Fed’s 2% target in the near term, the CBO says, due to tariffs and stronger demand, gradually falling to 2.1% in 2028.

On Wednesday, the CBO released data that predicts the U.S. population is projected to grow by 15 million people in 30 years, a smaller estimate than in previous years, due to Trump’s hardline immigration policies and an expected lower fertility rate.

Lawmakers established the Congressional Budget Office more than 50 years ago to provide objective, impartial analysis to support the budget process.

Associated Press writer Chris Rugaber contributed to this report.

Instead of sending flowers this Valentine’s Day, Como Park Zoo and Conservatory suggests dining among them instead.

Reservations are open through Jan. 23 for Como’s popular Valentine’s Day dinners in St. Paul.

From Feb. 13-15, sweethearts can dine after hours and by candlelight in the indoor gardens at the Marjorie McNeely Conservatory.

For $210 per couple, diners will receive a gourmet dinner (with two glasses of wine or beer per person) while sitting in the warmth and humidity, listening to string musicians and lingering among the plants and flowers in the Sunken Garden, the North Garden or the Palm Dome.

Before or after the meals, couples can stroll through the Tropical Encounters exhibit while sipping wine.

Seating is limited and advance reservations are required; these dinners do usually sell out.

Get details about menu options, dates and times and make reservations at comozooconservatory.org/como/2026valentinedinner.

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By FARNOUSH AMIRI, Associated Press

NEW YORK (AP) — The top United Nations official on Thursday said the United States has a “legal obligation” to keep paying its dues that fund U.N. agencies after the White House announced that it is withdrawing support from more than 30 initiatives operated by the world body.

Secretary-General Antonio Guterres said he regretted President Donald Trump’s decision to withdraw from 31 U.N.-related agencies, including the U.N.’s population agency and the U.N. treaty that establishes international climate negotiations. The U.S. also will depart dozens of other global organizations or initiatives not affiliated with the U.N.

“As we have consistently underscored, assessed contributions to the United Nations regular budget and peacekeeping budget, as approved by the General Assembly, are a legal obligation under the UN Charter for all Member States, including the United States,” Stephane Dujarric, a spokesperson for Guterres, said in a statement.

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He added that despite the announcement, the U.N. entities targeted will keep doing their work: “The United Nations has a responsibility to deliver for those who depend on us.”

The U.N. and several entities affected said they learned about the withdrawal through news reports and the White House social media post Wednesday. There has been no formal communication from the Trump administration outlining the announcement, Dujarric told reporters.

Many U.N. officials refused to comment on the impact the move would have on their agencies because they had not been given details or official word from anyone in the U.S. government.

Following a yearlong review of participation in and funding for all international organizations, Trump signed an executive order suspending American support for 66 groups, agencies and commissions.

Many of the targets are U.N.-related agencies, commissions and advisory panels that focus on climate, labor, migration and other issues the Trump administration has categorized as catering to diversity and “woke” initiatives.

Some of the agencies impacted, including the U.N. Population Fund, an organization that provides sexual and reproductive health services worldwide, has long been a lightning rod for Republican opposition, and Trump cut funding for it during his first term.

The withdrawal from the U.N. Framework Convention on Climate Change, or UNFCCC, came as less of a surprise as Trump and his allies had previously withdrawn U.S. support from other climate initiatives.

The 1992 agreement between 198 countries to financially support climate change activities in developing countries is the underlying treaty for the landmark Paris climate agreement. Trump withdrew from that agreement soon after returning to the White House.

Simon Stiell, UNFCCC executive secretary, warned the U.S. that the decision to pull back will harm “the US economy, jobs and living standards, as wildfires, floods, mega-storms and droughts get rapidly worse.”

“The doors remain open for the U.S. to reenter in the future, as it has in the past with the Paris Agreement,” he said in a statement. “Meanwhile, the size of the commercial opportunity in clean energy, climate resilience, and advanced electrotech remains too big for American investors and businesses to ignore.”

After filling U.S. Bank Stadium two years ago, country star Chris Stapleton will return to the metro July 29 to play the new Mystic Lake Amphitheater in Shakopee.

Tickets go on sale at 10 a.m. Jan. 16 via Ticketmaster. Citi cardholders and Verizon customers have access to presales that start at 10 a.m. Jan. 13. Singer/songwriter Allen Stone will open.

Initially known as the songwriter and frontman of the SteelDrivers, Chris Stapleton established himself as a solo star with the release of his debut, “Traveller,” in 2015. Not only did it go platinum seven times, it helped Stapleton fill a few shelves with awards. The 47-year-old Kentucky native has won 11 Grammy Awards, 11 Academy of Country Music Awards and 15 Country Music Association Awards.

His best-known include “Tennessee Whiskey,” “Broken Halos,” “Nobody to Blame,” “Millionaire,” “Starting Over” and “You Should Probably Leave.”

Stapleton released his most recent album “Higher” in 2023. He co-wrote the single “White Horse” with Semisonic’s Dan Wilson, who has won Grammys for his work with Adele and the Chicks. Stapleton opened for George Strait at U.S. Bank Stadium in 2021 and headlined Xcel Energy Center in 2017 and 2022.

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