Digest

Powell holds ground despite criticism

WASHINGTON — Federal Reserve Chair Jerome Powell on Tuesday stuck to his position that the central bank will keep its key rate on hold while it waits to see how President Donald Trump's tariffs affect the economy, despite the steady stream of criticism from the White House, which wants lower borrowing costs.

Powell also said that U.S. inflation is likely to pick up later this summer, though he acknowledged that the timing and magnitude of any price increase from the duties is uncertain. But he said the Fed will keep rates on hold while it evaluates the impact of tariffs on the U.S. economy.

"As long as the economy is in solid shape, we think the prudent thing to do is to wait and see what those effects might be," Powell said, referring to the sweeping duties Trump imposed this year.

Trump officials dismiss pro-Iran cyberattack

WASHINGTON — Pro-Iran hackers threatened to release emails supposedly stolen from people connected to President Donald Trump, according to a news report, a move that federal authorities called a "calculated smear campaign."

The United States warned of continued Iranian cyberattacks following American strikes on Iran's nuclear facilities and the threats those could pose to services, economic systems and companies.

The Cybersecurity and Infrastructure Security Agency said late Monday that the threat to expose emails about Trump is "nothing more than digital propaganda."

BRIEFLY

EMPLOYMENT: U.S. employers posted 7.8 million vacancies in May, the Labor Department reported Tuesday, up from 7.4 million in April and the highest since November's 8 million, when former President Joe Biden was still in the White House.

UKRAINE WAR: A Ukrainian drone struck a Russian industrial plant about 800 miles from Ukraine, a local official said Tuesday, after Ukraine President Volodymyr Zelenskyy prioritized the weapon's development and Russia pounded Ukraine with a monthly record of drones in June.

TRANSGENDER ATHLETES: The University of Pennsylvania agreed Tuesday to ban transgender women from its women's sports teams to resolve a federal civil rights case that found the school violated the rights of female athletes. The deal is part of the Trump administration's broader attempt to remove transgender athletes from girls' and women's sports.

ACA LAWSUIT: The mayors of Baltimore, Chicago and Columbus, Ohio, sued the Department of Health and Human Services on Tuesday over new Trump administration rules that give millions of people a shorter timeframe to sign up for the Affordable Care Act's health care coverage.

SPY SUSPECTS: Two Chinese nationals were charged with spying inside the United States on behalf of Beijing, including taking photographs of a naval base, coordinating a cash dead-drop and participating in efforts to recruit members of the military who they thought might be open to working for Chinese intelligence. The case was unsealed Monday.

HOUSING: California Gov. Gavin Newsom signed a bill Monday that will remake California's landmark environmental protection rules, an overhaul that he says is essential to address the state's housing shortage and resulting homelessness crisis.

— Associated Press