Business

Ford CEO Worried About Tariffs

Could blow a hole in the US auto industry.

Many are concerned about the incoming tariffs President Donald Trump plans to impose, including the U.S. auto industry. Ford CEO Jim Farley warned on Tuesday that those tariffs could “blow a hole” in the industry.

Farley explained how the tariff push has already brought “a lot of cost and a lot of chaos” to the auto industry, despite the president’s attempt to help. 

“Trump has talked a lot about making our U.S. auto industry stronger, brining more production here, more innovation to the U.S., and if this administration can achieve that, it would be one of the most signature accomplishments,” Farley said, while speaking at an analyst conference in Detroit. “So far, what we’re seeing is a lot of cost and a lot of chaos.”

Farley believes that the 25% tariffs on Mexico and Canada (long term) would allow Asia and Europe to benefit, while blowing that hole in the U.S. auto industry. Japanese and European companies are already bringing 1.5-2 million vehicles into the U.S. and those wouldn’t be subject to the new tariffs. 

Ford wouldn’t be as affected by the tariffs as General Motors or Stellantis (parent company of Jeep and Dodge), who rely on those countries more. 90% of Ford’s steel comes from the U.S., while the other 10% comes from Canada. The company's aluminum is also primarily sourced domestically. Steel and aluminum are included in the tariffs.

The tariffs were originally planned to take effect in early February, however, President Trump decided to delay them until at least March after Canada and Mexico had announced border security measures. 

In the meantime, Ford is considering areas in which it can build up its inventory in preparation for the increased tariffs. 

Around the Water Cooler:

🍫 Chocolate lovers feel the price pinch this Valentine's Day.

⌛ Joann to close about 500 fabric and craft stores nationwide.

Tech

Sam Altman Brushes Off Elons Offer

Thanks but no thanks, Altman squashes the rumor in an email to staff.

The battle between two tech leaders lingers on, as Elon Musk is now attempting to get control of OpenAI. However, in a letter to the company’s staff on Monday, CEO Sam Altman made it clear that he had no interest in Musk’s offer, even putting the words “bid” and “deal” in scare quotes. 

“Our structure exists to ensure that no individual can take control of OpenAI,” Altman explained in the letter. “Elon runs a competitive AI company, and his actions are not about OpenAI’s mission or values.”

Musk has not made his official offer yet, but it seems he can save his time, as the board said they plan to reject the bid. 

Musk had surprised many when he announced on Monday that he, and a group of investors, put together an unsolicited offer to buy all of OpenAI’s assets for $97.4 billion. Musk’s competing AI company, xAI, is backing the bid. 

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk explained. “We will make sure that happens.”

Musk was an original investor in the company, before having a falling out with Altman. The two have sparred since, with Musk even filing multiple recent lawsuits against OpenAI. 

Musk is not fond of the company's plan to convert to a for-profit as a public benefit corporation. OpenAI is currently valued at $157 billion, however, it’s been in talks with SoftBank about a $40 billion investment that would bring the company’s valuation up to $300 billion.

“Elon’s bid establishes a floor for the value of those assets. At the very least, it makes it much more complicated for OpenAI to spin off the assets into a for-profit controlled by Sam Altman,” explained Samuel D. Brunson, a law professor at Loyola University Chicago who specialties in nonprofit organizations. 

What’s New:

🤖 More Than One AI Revolution? Yann LeCun On Tech Trajectories.

💥 DeepSeek hasn’t just disrupted OpenAI. Chinese tech giants are being upended too.

Politics

FEMA Ignores Judges Order, Requests Funding

Actually they demanded funding, didn’t know you could do that.

Things are getting ugly around FEMA, as four aides were fired this week for being “deep state activists.”

A senior official at FEMA (Federal Emergency Management Agency) instructed subordinates to free funding for a wide array of grant programs, despite a federal judge ordering the Trump administration to stop such pauses (for a second time).

Stacey Street, the director of the agency’s Office of Grant Administration, told her team to freeze funding for grant programs, including those focused on emergency preparedness, homeland security, firefighting, protecting churches from terrorims and tribal security. She did so with an email that included the subject line: “URGENT: Holds on awards.”

“There’s a lot of people who are running scared and trying to appease [the new administration]. This is a violation of the court order,” said the snitch… err, employee who leaked the email to NBC News. 

The courts issued a temporary block until they can more fully determine wether the president has exceeded his legal authority or not. Those in between are caught in a tough spot, as they face firing by the Trump administration if they defy him… but also face potential legal sanctions if they don’t… pick your poison. 

The four employees were fired for “circumventing leadership to unilaterally make egregious payments for luxury NYC hotels for migrants,” Tricia McLaughlin, spokesperson for Homeland Security Secretary Kristi Noem, told NBC News. “Under President Trump and Secretary Noem’s leadership, DHS will not sit idly and allow deep state activists to undermine the will and safety of the American people.”

FEMA is the latest target of Elon Musk and DOGE. They turned their attention to the agency over the weekend, with Musk posting on X that they had broken the law by continuing to fund a temporary housing program for noncitizen migrants, claiming that $59 million had been illegally spent in recent weeks on luxurious hotels for migrants.

From The Hill:

🖐️ Inside the GOP’s careful pushback to Musk’s DOGE effort.

👍 Senate votes to confirm Tulsi Gabbard as top U.S. intelligence official.

U.S. News

Strongest Storm in a Year Heads to L.A.

As if the fires were not enough.

California just can't catch a break in 2025, when it comes to weather. The strongest storm in a year is set to hit Southern California, with forecasters warning of potential widespread flooding and the chance of (more) landslides.

There have been some modest storms in recent weeks that have brought beneficial rain to Southern California. However, this is anticipated to be far more severe, with forecasters suggesting that people avoid traveling today. 

The storm is expected to bring 1.5-3 inches of rain across much of Los Angeles, Ventura and Santa Barbara counties, with 3-6 inches expected in the mountains. 

So much for that Albert Hammond song about never raining in Southern California… 

“[Expect] lots of slick roads, lots of traffic accidents. There will be some roadway flooding… certainly more than we’ve seen this winter so far,” warned Ryan Kittell, a meteorologist with the National Weather Service in Oxnard, California.

The National Weather Service said the next few days could end up delivering the wettest storm of the entire winter. It’s also been estimated that there is a 50-70% chance of debris flows in the region, which is a type of landslide in which water rapidly flows downhill, moving as fast as 35 MPH and picking up not only mud, but also rocks, branches, and sometimes even boulders and/or cars.

Around the Country:

🥚 ‘No signs of slowing’: US egg prices soar as avian flu rips across farms.

👋 US no longer ‘primarily focused’ on Europe’s security, says Pete Hegseth.

Economy

Powell is in No Rush to Lower Rates.

Jerome Powell told congress the central bank is well positioned for uncertanties.

As expected, the Federal Reserve appears to be in no rush to cut interest rates. In fact, they’ve even said so.

Federal Reserve Chair Jerome Powell told a Senate Committee Tuesday that with a strong job market and with inflation still elevated, he and his colleagues “do not need to be in a hurry” to cut interest rates. Because of the state of the economy, the Fed can take its time to decide when, and whether, to lower interest rates.

“We’re in a pretty good place with this economy. We want to make more progress on inflation. And we think our policy rate is in a good place, and we don’t see any reason to be in a hurry,” Powell explained.

He also noted that the central bank had lowered its benchmark interest rate by a full percentage point last year. Further cuts will likely have to wait until inflation cools further, or until there’s a notable softening of the job market. 

Still, there remains questions about how Trump’s tariff policies could impact prices. Will they drive up prices? Which would then make it harder for the central banker to lower rates. 

Powell was also questioned about complaints that the Fed, and other bank regulators, discouraged banks from working with certain businesses (such as crypto businesses) as political favor during the Biden administration. 

Powell responded by saying the Fed will take a “fresh look” at its bank supervision manual.

From The Street:

📈 U.S. inflation increases to 3 percent, groceries and gasoline prices heading higher.

💰 Trump calls for lower borrowing costs, hinting at potential clash with Fed.

World News

Ceasefire to End in Middle East

If Hamas does not return hostages by Saturday, the Cease Fire may come to an end.

It hasn’t taken long for the two sides to each cry foul in the Israel and Hamas ceasefire. In fact, only three weeks… but each side is accusing the other of violating the deal they agreed to.

So far, 16 of the 33 hostages scheduled for release have been freed by Hamas, while 656 Palestinian prisoners from a list of nearly 2,000 have been released by Israel. 

However, the weekly exchanges may now be disrupted after Hamas accused Israel of violating the agreement and said it would postpone Saturday’s hostage release “until further notice.” Ruh-roh.

Israel has responded, saying that the ceasefire will end if Hamas does not release the hostages as planned.

“If Hamas does not return our hostages by Saturday noon - the ceasefire will end, and the IDF will return to intense fighting until Hamas is completely defeated,” Israel’s Prime Minister Benjamin Netanyahu said in a video.

President Trump has suggested dismissing the multi-staged approach of the deal altogether and giving Hamas an ultimatum to release all hostages at once. 

Some Israeli politicians have endorsed this idea, however, Netanyahu has not explicitly agreed to it… yet, atleast. 

In the meantime, the two sides will continue to tread on rocky footing.

Around the World:

🙏 Marc Fogel, American teacher held in Russia for 3.5 years, back in U.S. after release.

🫤 Canada and Mexico tariffs risk inflating US housing crisis, Trump is warned.