1. Federal Reserve Holds Rates Amid Inflation Concerns

On December 18, the Federal Reserve announced it would hold interest rates steady, citing persistent inflationary pressures and uneven labor market performance. Chair Jerome Powell emphasized that while inflation has cooled compared to earlier in 2025, it remains above the Fed’s target, requiring caution before any rate cuts. The decision followed weeks of speculation that the Fed might ease policy to stimulate growth.

Markets reacted with volatility, as investors had priced in at least one rate cut before year’s end. Economists warned that holding rates could slow consumer spending and housing activity, but also acknowledged that premature easing might reignite inflation. Analysts stressed that the Fed’s decision reflects the delicate balance between stabilizing prices and sustaining economic momentum heading into 2026.

2. Pentagon Expands Maritime Strikes

The Pentagon confirmed another strike on a suspected drug-smuggling vessel in the eastern Pacific, killing four people. This marked the 26th such strike since September, bringing the reported death toll to 99.

Democrats attempted to force congressional approval for these operations, but House Republicans rejected war powers resolutions. Analysts warned that bypassing Congress raises constitutional concerns and risks escalating tensions with Venezuela.

3. Severe Storms Leave 333,000 Without Power

Severe storms battered the Pacific Northwest and Rocky Mountains, leaving more than 333,000 homes and businesses without electricity. Utilities in Colorado and Washington were hardest hit, with crews working around the clock to restore service.

Residents faced dangerous conditions, with freezing temperatures compounding the crisis. Analysts stressed that extreme weather events highlight vulnerabilities in U.S. infrastructure and the urgent need for climate resilience planning.

4. North Carolina Plane Crash Kills Seven

A Cessna Citation II crashed while landing at Statesville Regional Airport in North Carolina, killing seven people, including NASCAR driver Greg Biffle and his family. Investigators are probing mechanical failure and weather conditions as possible causes.

The tragedy shocked the racing community and raised questions about aviation safety standards. Analysts noted that small aircraft accidents remain a persistent challenge in U.S. aviation oversight.

5. U.S. Approves $11.1 Billion Arms Sale to Taiwan

The United States approved its largest-ever arms deal with Taiwan, valued at $11.1 billion. The package includes ballistic missiles, drones, and howitzers, signaling Washington’s commitment to Taiwan’s defense.

China condemned the sale, warning of “serious consequences.” Analysts stressed that the deal underscores growing U.S.–China tensions and could reshape security dynamics in the Asia-Pacific region.

6. Immigration Restrictions Expanded

President Trump signed a proclamation further restricting entry from countries with weak vetting systems. The expanded list includes Afghanistan, Burma, Chad, Congo, Eritrea, Haiti, Iran, Libya, and Somalia.

Immigration advocates condemned the move, arguing that it unfairly targets vulnerable populations. Universities warned that international students could be disproportionately affected, disrupting academic programs and research.

7. Immigration Enforcement Intensifies

Reports highlighted that more than 65,000 people remain in detention centers, with 605,000 expulsions recorded in 2025. ICE raids continued across major cities, including incidents in Illinois where families were separated.

Advocates described 2025 as one of the “cruelest years” for migrants. Analysts warned that aggressive enforcement erodes trust between immigrant communities and law enforcement, raising humanitarian concerns.

8. Violence Against Tourists and Expats

International advisories warned tourists about rising gun violence in the United States. Countries including Canada and Australia urged citizens to exercise caution, particularly in urban centers.

Expats echoed concerns, citing daily exposure to shootings and insecurity. Analysts stressed that declining tourism could impact local economies, particularly in cities reliant on international visitors.

9. Lavrov Criticizes U.S. Interference in Europe

Russian Foreign Minister Sergei Lavrov criticized U.S. involvement in European politics, responding to comments by European Commission President Ursula von der Leyen. Lavrov accused Washington of “electoral neocolonialism.”

Analysts noted that the remarks reflect growing tensions between the U.S. and Russia over democracy and sovereignty. The exchange underscores the geopolitical challenges facing Washington in Europe.

10. Cambodia–Thailand Conflict Draws U.S. Attention

Cambodia accused Thailand of bombing Poipet despite a truce announced by President Trump. The incident highlights the fragility of regional peace efforts.

Analysts warned that U.S. involvement in Southeast Asian conflicts could complicate diplomatic relations. Observers stressed that maintaining credibility in peace negotiations remains a challenge for Washington.