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 only 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

Mounting costs on builders ultimately get passed on to buyers, pricing many out of the market. (Matthew Busch/Bloomberg/Getty Images)

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

President Donald Trump has begun a nationwide tour to address economic concerns. (Daniel Torok/Official White House Photo)

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.

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New York City Mayor Zohran Mamdani placed affordability at the center of his campaign to helm America’s largest city. (Andrew Lichtenstein/Corbis/Getty Images)

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.

A casi un mes de la captura de Nicolás Maduro, Donald Trump confirmó que EE.UU. mantuvo un primer acercamiento con las autoridades cubanas.

En declaraciones a bordo del Air Force One el sábado por la noche, el presidente estadounidense afirmó: “Estamos empezando a hablar con Cuba”.

Leé también: A 100 años del nacimiento de Fidel, Trump busca a la “Delcy Rodríguez cubana” para terminar con la Revolución

Se trata de la primera confirmación del inicio de un diálogo entre ambos países en medio de las persistentes amenazas de Trump que busca asfixiar económicamente a la isla para acabar con la Revolución. El mandatario republicano no dio más detalles sobre este acercamiento con La Habana, aunque la prensa opositora cubana afirma que el contacto se celebró en México.

“¡Patria o Muerte, venceremos!»

Mientras dialoga con Trump, el gobierno cubano se refugia puertas adentro en su emblemático lema de cabecera “¡Patria o Muerte, Venceremos!“, creado por Fidel Castro al comienzo de la Revolución, para resistir a esta nueva ofensiva de Trump que busca cerrar la canilla del suministro petrolero para provocar un colapso en la isla.

“Enfrentaremos la nueva arremetida con firmeza, ecuanimidad y seguridad de que la razón está absolutamente de nuestra parte. La decisión es una: “¡Patria o Muerte, Venceremos!“, concluyó una nota oficial publicada este fin de semana en la prensa oficialista.

El gobierno de Miguel Díaz-Canel, acorralado por la peor crisis social y económica de la historia de la Revolución, volvió a insistir en la necesidad de mantener un “diálogo serio” basado en el respeto de la soberanía.

“Está ampliamente documentada la disposición histórica de Cuba a sostener con el gobierno de los Estados Unidos un diálogo serio, responsable, basado en el Derecho Internacional, en la igualdad soberana, en el respeto mutuo, en el beneficio recíproco, sin injerencia en los asuntos internos y con absoluto respeto a la independencia y a la soberanía de los Estados”, afirmó el comunicado.

Sin embargo, al mismo tiempo no deja de mostrar sus armas. Este sábado realizó un nuevo ejercicio de defensa por cuarto fin de semana consecutivo.

¿Hay negociaciones secretas en México?

Trump viene sosteniendo que el gobierno cubano debe llegar a un acuerdo “antes de que sea demasiado tarde”. El jueves, firmó una orden ejecutiva que establece que Estados Unidos podrá imponer aranceles a los bienes procedentes de países que vendan o proporcionen petróleo a Cuba.

“Considero que la situación con respecto a Cuba constituye una amenaza inusual y extraordinaria para la seguridad nacional y la política exterior de EE.UU., y por la presente declaro una emergencia nacional con respecto a esa amenaza”, argumentó.

No es una amenaza más de las que viene sufriendo la isla desde hace 67 años. El presidente estadounidense viene de concretar un ataque a Venezuela que incluyó la captura de Nicolás Maduro el 3 de enero. Desde entonces el chavismo, bajo orden de Washington, suspendió todos los envíos petroleros a Cuba y dejó a la isla al borde del colapso energético. La Revolución perdió a su aliado más preciado que mantenía la débil economía cubana aferrada a un salvavidas.

Trump quiere asfixiar a Cuba y obligarla a iniciar una transición como está ocurriendo con la Venezuela post-Maduro bajo el comando de la presidenta encargada, Delcy Rodríguez.

“No tiene por qué haber una crisis humanitaria. Creo que probablemente vendrán a nosotros y querrían hacer un trato. Así que Cuba volverá a ser libre. Vendrán a nosotros y harán un trato”, aseguró el viernes antes de confirmar el primer contacto.

La Revolución vive su hora más crítica. Con apagones masivos y diarios, sin combustible, escasez de toda clase de productos y servicios, el descontento crece entre los cubanos que atraviesan un éxodo sin precedentes solo aminorado por las políticas migratorias del propio Trump.

En ese escenario, el periodista cubano exiliado en España Carlos Cabrera Pérez, que trabajó en el diario Granma, órgano oficial del Partido Comunista de Cuba, reveló que el general Alejandro Castro Espín, el único hijo varón del expresidente Raúl Castro, mantuvo conversaciones secretas en México con un importante enviado de la CIA.

Según esa versión publicada en sitios del exilio cubano, no confirmada oficialmente en La Habana ni Washington, habrían llegado a “un principio de acuerdo” para iniciar una “transición” que incluiría una “amnistía” para presos políticos, según una fuente no precisada del gobierno de Claudia Sheinbaum.

Leé también: El Gobierno reafirma su alineamiento con EE.UU. y recomienda no viajar a Cuba

Se trata de una concesión ya otorgada por el nuevo gobierno de Caracas y que aún debe ser aprobada por la Asamblea Nacional (Parlamento) chavista.

Siempre según la versión, el proceso de liberación de más de 800 presos cubanos comenzaría este miércoles próximo. Por lo pronto el sitio opositor 14ymedio, que dirige la periodista disidente Yoani Sánchez, reveló que el tribunal municipal de ciudad de Matanzas postergó sin fecha los juicios contra las disidentes Alina Bárbara y Jenny Pantoja que estaba previsto para fines de enero. Bárbara dio una entrevista con TN poco días antes del inicio del proceso y denunció la “crítica situación” que afronta la isla.

Pero desde el gobierno cubano se busca mostrar firmeza y determinación para enfrentar a la Casa Blanca, más allá del inicio de negociaciones.

“Se confunde el imperialismo cuando confía en que con la presión económica y el empeño en provocar sufrimiento a millones de personas, se va a doblegar su determinación de defender la soberanía nacional y de impedir que Cuba caiga, una vez más, bajo el dominio estadounidense”, afirma la nota publicada el sábado en la prensa oficial.

En sintonía con el histórico discurso de fuerza y combate, la nota advirtió: “Tiene ante sí la comunidad internacional el reto ineludible de definir si un crimen de esta naturaleza podrá ser el signo de lo que está por venir o si prevalecerán la cordura, la solidaridad y el rechazo a la agresión, la impunidad y el abuso”.

A pair of Senate Republicans are pushing their House counterparts to reject the Trump-backed shutdown deal unless it includes Homeland Security funding and election integrity legislation. 

Sens. Rick Scott, R-Fla., and Mike Lee, R-Utah, are calling on House Republicans to push back against the Senate-passed funding package, which includes bills to fund five agencies, including the Pentagon, as a partial government shutdown continues. 

They contended that the package needs to be retooled, and must include a modified version of the Safeguarding American Voter Eligibility Act, dubbed the SAVE America Act, and the Homeland Security (DHS) funding bill, which was stripped out after Senate Democrats threatened to blow up the government funding process. 

HOUSE DEMOCRATS MUTINY SCHUMER’S DEAL WITH WHITE HOUSE, THREATENING LONGER SHUTDOWN

Doing so could extend what was expected to be a short-term shutdown.

Scott said congressional Democrats would «NEVER fund DHS» and Immigration and Customs Enforcement (ICE). He voted against the package twice, arguing that the spending levels would further bloat the nation’s eye-popping $38 trillion national debt, and that the billions in earmarks betrayed Republicans’ previous vows of fiscal restraint.

«If House Republicans don’t put the DHS bill back in, add the SAVE America Act and remove the wasteful earmarks, Democrats win,» Scott said. «We must protect our homeland, secure our elections and end the reckless spending NOW!»

HOUSE CONSERVATIVES THREATEN EXTENDED SHUTDOWN OVER ELECTION INTEGRITY MEASURE

Sen. Mike Lee wants House Republicans to push back against the Trump-backed government funding deal, and demanded that it include DHS funding and his voter ID legislation. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

Lee also rejected the package in the Senate because of earmarks. He also agreed with Scott, and pushed for his SAVE America Act, which he introduced alongside Rep. Chip Roy, R-Texas, to be included.

«To my friends in the House GOP: Please put DHS funding back in, then add the SAVE America Act,» Lee wrote on X. 

The updated version of the SAVE Act would require that people present photo identification before voting, states obtain proof of citizenship in-person when people register to vote and remove noncitizens from voter rolls. 

But their demands run counter to the desire of President Donald Trump, who brokered a truce with Senate Minority Leader Chuck Schumer, D-N.Y., to strip the DHS bill following the fatal shooting of Alex Pretti during an immigration operation in Minneapolis in order to ram the funding package through the Senate.

GOVERNMENT SHUTS DOWN AGAIN AFTER DEMOCRATS REVOLT OVER DHS FUNDING

Speaker Mike Johnson walks from the chamber after the final vote to bring the longest government shutdown in history to an end, at the Capitol, Nov. 12, 2025. (J. Scott Applewhite/AP Photo)

And any changes to the deal, like including the SAVE America Act or adding the DHS bill, would send the package back to the Senate, where Schumer and his caucus would likely reject it. 

That would create a back-and-forth between the chambers that would further prolong what was meant to be a temporary shutdown.

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Their demands also place House Speaker Mike Johnson, R-La., in a precarious position, given that several House Republicans want to extract concessions from congressional Democrats. Rep. Anna Paulina Luna, R-Fla., is already leading a charge to include the SAVE Act in the funding package. 

Johnson will have to shore up any resistance among his conference, given that House Minority Leader Hakeem Jeffries, D-N.Y., made clear to the speaker that any attempt to fast-track the legislation on Monday, when the House returns, would fail.