The Federal Reserve held interest rates steady yesterday after three cuts last year, saying the job market was showing signs of stabilizing. The lack of action suggests a brightening economic outlook for 2026. Many analysts still expect one or two rate cuts in the latter part of the year, especially if core inflation, hovering near 3%, edges down toward the Fed’s 2% target. Meanwhile, the price of gold hit a record high, surging above $5,500 per ounce.

Amazon announced 16,000 corporate layoffs as the artificial intelligence race accelerates. The second-largest private employer in the United States had already slashed 14,000 roles in October and is working to keep up with the likes of Microsoft, Google, and OpenAI by pouring money into AI development. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” CEO Andy Jassy wrote to employees last year.

Detained Minnesota refugees must be released, a federal judge ruled yesterday. The government this month said it was targeting 5,600 lawfully admitted refugees in Minnesota for potential fraud. The judge ordered the Department of Homeland Security to refrain from arresting more refugees who have “followed the rules.” The ruling comes amid an aggressive immigration enforcement surge that has killed two U.S. citizens in Minneapolis. Two border agents involved in the shooting of Alex Pretti have been placed on leave.

Texas Gov. Greg Abbott ordered state agencies and public colleges and universities to stop sponsoring H-1B visas for highly skilled workers, saying in a letter “the economy of Texas should work for the benefit of Texas workers.” The move mirrors President Donald Trump’s “America First” reforms, which include a $100,000 fee for the visas. Mr. Abbott, a Republican, accused “bad actors” of taking advantage of the program and not doing enough to hire American workers.

A federal judge allowed construction to resume on a wind farm off the coast of Massachusetts. The Trump administration suspended work on Vineyard Wind and four other offshore wind projects in December, citing national security risks. Judge Brian E. Murphy said the project, which is 95% complete, poses no immediate risk and allowed it to continue alongside litigation. Three other projects have also been given permission to resume work.

Japan has no giant pandas for the first time since 1972, after the four-year-old Tokyo-born twins Xiao Xiao and Lei Lei arrived in China yesterday. China lends the bears to other countries as a form of diplomacy, and pandas born overseas normally return to China for breeding. But amid current tensions between Beijing and Tokyo over Taiwan, no agreement has yet been reached for China to send more pandas.

Sarah Mullally became archbishop of Canterbury, making her the first woman to lead the Church of England. The archbishop is also seen as the spiritual head of the Anglican Communion, a worldwide network of churches including the Episcopal Church in the United States. In remarks posted online before the ceremony, she said she hopes to nurture “confidence in the gospel” and to “be a shepherd.”

– From Monitor writers around the globe

The seizure of Nicolás Maduro has encouraged Venezuelans, especially in terms of economic growth, but they are unsure what it means for the state of democracy in the South American nation.

The newest National Defense Strategy is attracting global attention for pledging “more limited” U.S. support to friendly nations. It envisions deterring China “through strength, not confrontation.”

Immigration enforcement involves a slew of federal agencies. Amid some calls to “abolish ICE,” here’s more information about the roles various departments play.

President Donald Trump is pushing hard for a security deal between longtime U.S. ally Israel and emerging partner Syria. But suspicions about President Ahmed al-Sharaa and concerns over the status of Syrian Kurds and Druze are giving many Israelis pause.

Instruments like violins and trombones can be hard for students to procure in the Republic of Congo, and classical music is often unfamiliar to Congolese audiences. But for a dedicated group of young musicians, their orchestra is a cherished opportunity of a lifetime.

On Feb. 12, the heads of the European Union’s 27 member states will gather in an emergency summit at the request of Germany and Italy. Why the urgency? The bloc’s economic competitiveness continues to falter – especially in tech innovation such as artificial intelligence – in what is seen as an overly regulated market.

The EU’s growth rate in productivity per worker is less than a quarter of that of the United States, based on latest figures. In 2024, the EU collected more in fines from U.S. tech companies than in total taxes on its own tech firms.

Such comparisons, notably the productivity gap, are not the only thing driving the EU into a round of introspection over how to further unleash the talents of its 450 million inhabitants.

Criticism from its closest friends has also grown louder. Surprisingly, the foreign rebukes are welcomed by many Europeans.

At the recent World Economic Forum in Davos, Switzerland, President Volodymyr Zelenskyy of Ukraine said Europe “avoids taking action” on the continent’s future. “Instead of becoming a truly global power,” he said, “Europe remains a beautiful but fragmented kaleidoscope of small and middle powers.” Officials from the Trump administration were equally critical of Europe’s declining economic prowess.

To be sure, the EU is doing much to boost competitiveness. On Tuesday, for instance, it struck a trade deal with India to reduce tariffs, a signal of Europe’s desire to be less dependent on a less-reliable United States. Yet it has made little progress based on a 2024 blueprint for boosting competitiveness, written by former European Central Bank President Mario Draghi.

“I think we have heard quite a lot of European bashing the last few days,” said Christine Lagarde, the current ECB president, in Davos. “But if anything it has been good, and we should say thank you to the bashers, because I think it has given us a complete realization of the fact that we have to be more focused” on innovation and productivity.

In a similar vein, European Commission President Ursula von der Leyen said, “Whether on trade or business, capital or energy – Europe needs an urgency mindset.” She admitted that too many European companies “have to look abroad to grow and scale up – partly because they face a new set of rules every time they expand into a new member state.”

As the EU’s top executive, Ms. von der Leyen often invokes humility as essential to the bloc’s tasks, such as during the pandemic. She sees the trait as essential for being open and trusting – something many startup tech firms tap for ingenuity and collaboration.

As C.S. Lewis is often credited with stating: “Humility is not thinking less of yourself, but thinking of yourself less.”

Europe was once at the frontier of inventing technologies, from the printing press to television. It still has many world-class companies. Yet, now, with its emergency summit next month, it might be entering a period of earnest reflection. And it is doing so with gratitude for those nudging it along.