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Capital One $425 million settlement with depositors should be rejected, US states say

Summary

  • 18 states oppose ‘s $425M
  • Deal covers account holders since 2019
  • States say depositors get just $54 of $717 in losses
  • Bank could avoid more than $2.5B in payouts

(Reuters) -A bipartisan group of 18 U.S. states told a federal judge that Capital One’s $425 million settlement with depositors who felt cheated out of high should be rejected, because it lets the bank continue short-changing customers.

Led by New York Attorney General , the states objected in a filing made public on Wednesday in in Alexandria, Virginia, where U.S. District Judge David Novak granted preliminary settlement approval in June.

Capital One and a lawyer for the depositors had no immediate comment.

Capital One did not admit wrongdoing under the settlement.

The May 16 settlement addressed claims that Capital One froze rates at 0.3% on its “high interest” 360 Savings accounts, while quietly offering rates exceeding 4% to new customers on similarly named 360 Performance Savings accounts.

Capital One, based in McLean, Virginia, agreed to pay 360 Savings depositors $300 million to cover interest they missed out on, plus another $125 million in interest if the depositors still held their accounts.

STATES SAY SETTLEMENT WOULD SAVE BANK MORE THAN $2.5 BILLION

But the states told Novak that 360 Savings depositors would earn just 0.78% under the settlement, below the 3.5% that Capital One now offers 360 Performance Savings depositors.

The states said this would save the sixth-largest U.S. commercial bank more than $2.5 billion, while providing typical depositors just $54 of the $717 in interest lost.

They also complained that Capital One wouldn’t have to change its behavior. They said Novak should reject Capital One’s claim that the settlement preempted James’ own lawsuit on behalf of 360 Savings depositors in her state.

The settlement covers depositors with 360 Savings accounts at any time since September 18, 2019. A hearing to consider final settlement approval is scheduled for November 6.

Other states objecting to the settlement include Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Oregon, Rhode Island and Washington.

The U.S. Consumer Financial Protection Bureau filed a similar lawsuit against Capital One in January.

It dropped that case in February, after took office and the White House largely ended the ‘s enforcement activity.

The case is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.

 

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

 

Area Development ranks Virginia No. 1 for workforce training

The Virginia Partnership’s has been ranked the top training program in the nation by magazine.

Area Development is an executive magazine that has been covering corporate site selection and relocation since 1965. Its 15th annual Top States for Doing Business report was based on results from a survey of expert consultants advising companies on site location.

The Virginia Talent Accelerator Program (VTAP) is a workforce initiative that accelerates new facility startups by providing fully customized recruitment and training services. The program services, meant to incentivize job creation, are provided at no cost to qualified new and expanding companies.

Area Development says Virginia’s workforce training program was followed by Georgia, South Carolina, Tennessee and North Carolina, which it said were “all states with well-regarded, state-supported programs that align closely with employer needs.”

Virginia ranked seventh overall in the 2025 Top States for Doing Business report, up two spots from its ranking the previous year.

“Virginia doesn’t follow, we lead, and our Virginia Talent Accelerator Program is leading the nation in workforce training,” said in a statement. “For many companies, this program is a major factor in choosing to invest in Virginia, because it provides tailored training that equips employees with the right skills from day one. More Virginians are stepping into the workforce and we’re making sure they are prepared to seize the incredible opportunities available in the commonwealth.”

The talent accelerator program’s latest recognition comes on the heels of also being ranked No. 1 in the nation in the annual Business Facilities Rankings Report for the third consecutive year.

“By collaborating directly with companies to provide fully tailored recruitment and training solutions, we give employers the certainty to grow and thrive in every region of the commonwealth,” said President and Jason El Koubi in a statement. “Area Development’s acknowledgement of the Talent Accelerator affirms the program’s impact and showcases the dedication of our team to making Virginia the premier destination for business.”

Launched in 2019, the Virginia Talent Accelerator Program was created by the VEDP in collaboration with the . Since its launch, it has helped secure more than 17,000 jobs across the state.

Hillsville manufacturer to close, leaving 68 out of work

SUMMARY:

  • to close facility Oct. 9
  • 68 workers will lose jobs Oct. 24
  • Rising energy costs cited as reason for shuttering

Parkdale, a manufacturer that bills itself as one of the world’s largest providers of spun yarns, plans to close its Hillsville facility, with 68 employees losing their jobs by Oct. 24, according to a notice sent to the state in compliance with the Worker Adjustment and Retraining Notification Act.

The facility will close Oct. 9 “as a result of the declining economic environment created by rapidly rising energy costs,” which created “an unsustainable business model,” Karen Menting, vice president of human resources for Parkdale, wrote in a letter to Virginia Works, also known as the Virginia Department of and Advancement.

Parkdale did not respond to a request for comment. Carroll County Administrator Michael Watson confirmed the Wednesday.

On Oct. 9, 2023, Parkdale closed three of four Carroll County facilities, according to news reports. That time, 326 employees lost their jobs.

For July, Carroll County had a 4.2% rate, a historically low figure. “So, a lot of them, they’ll be able to find jobs within the area,” Watson said of the laid-off Parkdale workers.

In February, U.K. business development firm Oasthouse Ventures, which specializes in environmentally sustainable endeavors, announced plans to invest $104.8 million to build its first U.S.-based controlled environment agriculture operation in Carroll, a project expected to create 118 jobs initially. The venture, which now goes by the name Pluck’d, expects to begin harvesting tomatoes at a 65-acre sustainable greenhouse in January, according to the company website.

Watson said he has not been told what Parkdale plans to do with its facilities.

“It’s about a million dollars’ worth of tax revenue to the county that we no longer will collect,” he said. “It’s a pretty good hit to [the county] budget.”

Founded in 1916, Parkdale is headquartered in Gastonia, North Carolina. The company purchased U.S. Cotton in 2008 and has facilities in the United States, Mexico and South America.

15 Virginia schools make U.S. News’ 2026 universities list

 

SUMMARY:

  • 15 Va. schools made U.S. News and World Report’s 2026 Best National list
  • U.Va. was the highest-ranked Virginia school on the list
  • 16 Va. schools made the Best National Liberal Arts Colleges list, led by

Fifteen Virginia schools ranked on the U.S. News & World Report’s 2026 Best National Universities list released Tuesday. Multiple Virginia schools were noted on other from the media company, including 16 on the Best National Liberal Arts Colleges list.

The led Virginia schools in the national universities rankings for at least the sixth consecutive year, although it dropped from No. 24 to No. 26. It tied with the University of North Carolina at Chapel Hill.

For U.S. News & World Report’s Best Colleges lists, researchers evaluated more than 1,500 using up to 17 measures of academic quality and graduate success for its national universities list and 13 indicators for the national liberal arts colleges list. Measures include graduation rates, first-year retention rates, peer assessment and other data.

Here are the 15 Virginia universities on the 2026 Best National Universities list:

  • No. 26 U.Va. (tie)
  • No. 51 (tie)
  • No. 51 (tie)
  • No. 117 George Mason University (tie)
  • No. 139 (tie)
  • No. 151 James Madison University (tie)
  • No. 273 (tie)
  • No. 273 Marymount University (tie)
  • No. 293 Old Dominion University (tie)
  • No. 301 Shenandoah University (tie)
  • No. 329 Radford University (tie)
  • No. 329 University of Lynchburg (tie)
  • No. 373 Regent University (tie)
  • No. 384 Mary Baldwin University (tie)
  • No. 395-434 Liberty University

The University of Virginia tied for fourth on U.S. News & World Report’s Top Public Schools list, maintaining its ranking from last year, and tied with UNC Chapel Hill.

“U.Va. continues to offer a world-class education that provides exceptional value and return on investment for our graduates,” Paul Mahoney, U.Va.’s interim president, said in a statement.

Virginia Tech and William & Mary tied for 21st in the top public schools rankings. George Mason University was No. 57, tied with Arizona State University, Iowa State University of Science and Technology, San Diego State University, University of Central Florida and University of New Hampshire.

Virginia Commonwealth University tied with California State University, Fullerton, for No. 72, and James Madison University made No. 79, tying with Colorado State University, University of Massachusetts Lowell, University of Rhode Island and University of Utah.

Old Dominion University ranked No. 159 (tied with Bowling Green State University, University of Puerto Rico, Rio Piedras Campus, University of Toledo and Western Michigan University), and Radford University was 178th and tied with eight schools.

Four Virginia schools made U.S. News & World Report’s Historically Black Colleges and Universities list. Hampton University ranked No. 7 again this year. Virginia State University tied with Bowie State University in Maryland for 11th, a jump from 23rd last year. Norfolk State University was No. 26, while Virginia Union University tied for the 43rd slot. VUU tied with Southern University and A&M College in Louisiana.

Sixteen Virginia colleges made the Best National Liberal Arts Colleges list:

  • No. 21 Washington and Lee University
  • No. 22 University of Richmond (tie)
  • No. 65 Virginia Military Institute (tie)
  • No. 96 Randolph-Macon College (tie)
  • No. 107 Hampden-Sydney College (tie)
  • No. 107 Patrick Henry College (tie)
  • No. 126 Roanoke College (tie)
  • No. 131 University of Mary Washington (tie)
  • No. 135 Hollins University (tie)
  • No. 156 Randolph College (tie)
  • No. 164 Sweet Briar College (tie)
  • No. 167 Bridgewater College (tie)
  • No. 167 University of Virginia’s College at Wise (tie)
  • No. 178 Virginia Wesleyan University (tie)
  • No. 183-201 Southern Virginia University
  • No. 183-201 Virginia Union University

Redhorse taps new CEO

Arlington County and data science service provider is promoting its president, , to .

Redhorse serves federal agencies, the U.S. (also known as the Department of War), homeland security and the intelligence community, providing data insights and cyber analytics. The company leverages artificial intelligence and helps agencies integrate digital technology into their business.

In a Monday LinkedIn post announcing the promotion, Redhorse said Klemm has more than 20 years of experience in national security, data exploitation, artificial intelligence and machine learning. Klemm joined Redhorse in 2022 as chief delivery officer, and became its president in January, following the retirement of previous Redhorse CEO John Zangardi.

“The demand for trusted partners who can apply advanced data and AI technologies to mission challenges has never been greater,” Redhorse Founder and Chairman David Inmon said in the LinkedIn post. “Noah’s experience leading complex organizations and executing growth strategies makes him the right leader for Redhorse’s next phase.”

Before Redhorse, Klemm spent more than two decades at Novetta, which was acquired by Accenture Federal Services in 2021. He has a bachelor’s degree in international affairs and international politics from James Madison University.

Founded in 2008, Redhorse has between 201-500 employees, according to its company LinkedIn profile.

Trump administration rehires hundreds of federal employees laid off by DOGE

Summary

  • Hundreds of laid-off federal workers offered
  • Employees must decide by week’s end on return offers
  • Recalled staff to report back on Oct. 6
  • Rep. questions cost savings from cuts

Hundreds of who lost their jobs in Elon Musk’s cost-cutting blitz are being asked to return to work.

The General Services Administration has given the employees — who managed government workspaces — until the end of the week to accept or decline reinstatement, according to an internal memo obtained by The Associated Press. Those who accept must report for duty on Oct. 6 after what amounts to a seven-month paid vacation, during which time the in some cases racked up high costs — passed along to taxpayers — to stay in dozens of properties whose leases it had slated for termination or were allowed to expire.

“Ultimately, the outcome was the agency was left broken and understaffed,” said Chad Becker, a former GSA real estate official. “They didn’t have the people they needed to carry out basic functions.”

Becker, who represents owners with government leases at Arco Real Estate Solutions, said GSA has been in a “triage mode” for months. He said the sudden reversal of the downsizing reflects how Musk and his Department of Government Efficiency had gone too far, too fast.

Rehiring of purged federal employees

GSA was established in the 1940s to centralize the acquisition and management of thousands of federal workplaces. Its return to work request mirrors rehiring efforts at in several agencies targeted by DOGE. Last month, the IRS said it would allow some employees who took a resignation offer to remain on the job. The Labor Department has also brought back some employees who took buyouts, while the National Park Service earlier reinstated a number of purged employees.

Critical to the work of such agencies is the GSA, which manages many of the buildings. Starting in March, thousands of GSA employees left the agency as part of programs that encouraged them to resign or take early retirement. Hundreds of others — those subject to the recall notice — were dismissed as part of an aggressive push to reduce the size of the federal . Though those employees did not show up for work, some continue to get paid.

GSA representatives didn’t respond to detailed questions about the return-to-work notice, which the agency issued Friday. They also declined to discuss the agency’s headcount, staffing decisions or the potential cost overruns generated by reversing its plans to terminate leases.

“GSA’s leadership team has reviewed workforce actions and is making adjustments in the best interest of the customer agencies we serve and the American taxpayers,” an agency spokesman said in an email.

Democrats have assailed the ‘s indiscriminate approach to slashing costs and jobs. Rep. Greg Stanton of Arizona, the top Democrat on the subcommittee overseeing the GSA, told AP there is no evidence that reductions at the agency “delivered any savings.”

“It’s created costly confusion while undermining the very services taxpayers depend on,” he said.

DOGE identified the agency, which had about 12,000 employees at the start of the Trump administration, as a chief target of its campaign to reduce fraud, waste and abuse in the federal government.

A small cohort of Musk’s trusted aides embedded in GSA’s headquarters, sometimes sleeping on cots on the agency’s sixth floor, and pursued plans to abruptly cancel nearly half of the 7,500 leases in the federal portfolio. DOGE also wanted GSA to sell hundreds of federally owned buildings with the goal of generating billions in savings.

GSA started by sending more than 800 lease cancellation notices to landlords, in many cases without informing the government tenants. The agency also published a list of hundreds of government buildings that were targeted for sale.

DOGE’s massive job cuts produced little savings

Pushback to GSA’s dumping of its portfolio was swift, and both initiatives have been dialed back. More than 480 leases slated for termination by DOGE have since been spared. Those leases were for offices scattered around the country that are occupied by such agencies as the IRS, Social Security Administration and Food and Drug Administration.

DOGE’s “Wall of Receipts,” which once boasted that the lease cancellations alone would save nearly $460 million, has since reduced that estimate to $140 million by the end of July, according to Becker, the former GSA real estate official.

Meanwhile, GSA embarked on massive job cuts. The administration slashed GSA’s headquarters staff by 79%, its portfolio managers by 65% and facilities managers by 35%, according to a federal official briefed on the situation. The official, who was not authorized to speak to the media, provided the statistics on condition of anonymity.

As a result of the internal turmoil, 131 leases expired without the government actually vacating the properties, the official said. The situation has exposed the agencies to steep fees because property owners have not been able to rent out those spaces to other tenants.

The public may soon get a clearer picture of what transpired at the agency.

The Government Accountability Office, an independent congressional watchdog, is examining the GSA’s management of its workforce, lease terminations and planned building disposals and expects to issue findings in the coming months, said David Marroni, a senior GAO official.

As Boeing’s stock rises on a new foreign deal, US officials signal China may be next to order planes

Summary

  • to buy up to 22 787 Dreamliners
  • Trump valued the deal at $8B but misstated the plane total
  • Ambassador David Perdue says China talks in “final” stages
  • Potential China deal would be Boeing’s first major sale in years
  • closed 2% higher, up 22% year-to-date
  • Company seeks rebound after 2024 setbacks, strike, and fraud charge

Boeing’s stock climbed Tuesday after the American aerospace giant announced a significant jetliner order from Uzbekistan and as optimism builds around a potentially larger aircraft sale to China.

David Perdue, the U.S. ambassador to China, said he thinks negotiations over a possible deal involving Boeing and China are likely in their “final” days or weeks.

“This is a huge order, and it’s very important to the president, very important to Boeing,” Perdue said Tuesday while visiting China with a group of U.S. lawmakers. The ambassador did not give details on the pending transaction.

Perdue’s comments came a day after Boeing said that Uzbekistan Airways would buy up to 22 of its 787 Dreamliners. The Central Asian nation’s flag carrier plans to acquire 14 of the widebody passenger planes and reserved options for adding eight more to the order, Boeing said.

Boeing said the purchase would help the airline expand its international routes, including to the United States, while also “supporting nearly 35,000 U.S. jobs.”

Boeing’s stock price closed 2% higher on Tuesday, bringing its gain for the year so far to 22.2%.

, in a social media post Monday evening, valued the Uzbekistan Airways deal at over $8 billion but erroneously said the order was for 22,787 planes.

Boeing declined to comment on Trump’s Truth Social post and referred questions to the White House. The White House did not respond to multiple emailed requests from The Associated Press seeking to clarify the numbers that the president cited.

Meanwhile, the potential aircraft deal with China would mark the first sale to the country in years. Although Boeing was still delivering planes to China, its business there plummeted in 2019, when the country became the first to ground all 737 Max planes following two crashes that killed 346 people less than five months apart. Chinese airlines did not resume Max flights until January 2023, much later than other carriers in other countries.

“It’s been a while since Boeing airplanes have been sold here in China,” U.S. Rep. Adam Smith, the top Democrat on the House Armed Services Committee, said in Beijing on Tuesday. “We’d like to get that deal done.”

Boeing refused to comment on a potential order from China or Chinese companies. The commercial and military aircraft maker has been seeking to reverse its fortunes and public image after a calamitous 2024. In January of last year, a panel called a door plug blew off a 737 Max shortly after takeoff from Portland, Oregon.

In July, federal prosecutors revived a criminal fraud charge against the company in connection with the deadly 737 Max crashes in 2018 and 2019. A nearly eight-week strike by the machinists who assemble the 737 Max and two other Boeing planes in Washington state halted production and further dented the company’s finances.

Since Trump returned to the White House this year, his administration has made Boeing a focus of its plans to revive U.S. .

Trump has said he would meet Chinese leader Xi Jinping at a regional summit taking place at the end of October in South Korea and intends to visit China in the “early part of next year,” following a lengthy phone call between the two on Friday.

Virginia employers face new costs from Trump’s $100k H-1B visa fee

SUMMARY:

    • President Trump’s $100,000 fee on new could affect Virginia employers
    • Nearly 25,000 H-1B visas were approved for workers tied to Virginia in 2024
    • Virginia’s U.S. senators oppose the change

With nearly 25,000 H-1B visas approved for workers tied to Virginia in 2024, the commonwealth’s companies and universities have a lot at stake following the Trump administration’s move to impose a $100,000 annual fee on the visas for skilled workers.

The Trump administration’s latest plan to overhaul the American immigration system, the $100,000 fee went into effect Sunday. In a Sept. 19 proclamation, said that companies have “abused” the program, which, he wrote, “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.” In particular, Trump singled out information technology companies for outsourcing jobs and paying lower wages to .

Under the new program, companies would foot the bill for the $100,000 fee for a worker visa, which previously cost between $1,700 to $5,000. The $100,000 fee is scheduled to expire after a year, but it could be extended if the government determines that keeping it is in the interest of the United States.

The top employers with H-1B visa workers tied to Virginia last year were .com, which had about 15,000 H-1B visa beneficiaries, and subsidiaries of McLean-based Financial, which had 748 H-1B beneficiaries, according to U.S. Citizenship and Immigration Services data. CGI Technologies and Solutions, a subsidiary of CGI, which offers IT services and consulting, had 655 H-1B workers.

For H-1B visas, the state listed is the mailing address of the employer, which is not necessarily where the employee will work. Nationally, Amazon has been the employer with the most H-1B workers approved each year since 2020, according to the Pew Research Center.

CGI declined to comment about the new fee on H-1B visas, and Amazon and Capital One did not immediately respond to requests for interviews.

However, , Virginia’s junior Democratic senator, thinks the fee will wallop Virginia’s economy.

“Slapping a $100,000 fee on H-1B petitions is bad for our economy, especially for startups and small businesses that rely on these visas to hire workers with specialized skill sets,” he said in a statement. “Having a diverse , including workers from all around the world, has been critical to Virginia’s economic growth and success over the years.”

The newly announced H-1B visa fees left some immigrant workers and their employers confused over the weekend, forcing the White House on Saturday to scramble to clarify that a new $100,000 fee on visas for skilled tech workers only applies to new applicants and not to current visa holders.

“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” White House press secretary Karoline Leavitt said in a posting on X. “This applies only to new visas, not renewals, and not current visa holders.”

The White House in a social media post also sought to make clear the new rule “does not impact the ability of any current visa holder to travel to/from the U.S.”

But immigration attorneys said that the White House move threatened to upend the lives of many skilled workers and has far-reaching impact on American business.

Kathleen Campbell Walker, an immigration attorney with Dickinson Wright based in El Paso, Texas, said in a posting on LinkedIn that the White House move “inserts total chaos in existing H-1B process with basically a day’s notice.”

Lutnick on Friday told reporters that the fee would be an annual cost for companies.

But a White House official said Saturday that it’s a “one-time fee.” Asked if Lutnick’s comments sowed confusion, the official, who was not authorized to comment publicly about the matter and spoke on the condition of anonymity, said the new fee “currently does not apply to renewals but that policy is under discussion.”

The change and the confusion could discourage skilled workers in other countries from considering the H-1B visa program altogether.

“I fear that steps like this — that have a whole lot more to do with the Trump administration’s hostility toward immigrants than what’s best for our economy — will only take us backward,” Kaine said in his statement.

Virginia’s universities were also scrambling to assess the change this week.

Virginia Tech has 298 employees with H-1B visa out of 9,300 total employees, according to Mark Owczarski, university spokesperson. As of now, Virginia Tech’s understanding is that the fee does not apply to university employees with H-1B visas who need extensions or need to amend petitions for changing job locations or duties, Owczarski noted. It also does not appear to apply to individuals who are currently outside of the country and need to apply for a new H-1B visa prior to returning.

“At Virginia Tech, all H-1B requests for extensions and amendments are currently being processed as normal,” Owczarski said in a statement.

Meanwhile, the is also working to understand and asses the impact, if any, of Trump’s proclamation on its workforce.

“Based on our preliminary analysis, we have informed current employees who hold H-1B visas that they are free to travel internationally, but that they should do so with caution,” U.Va. spokesperson Bethanie Glover said in a statement. “We will share more information with that population and others who are interested as we learn more.”

Virginia Commonwealth University has about 150 employees with H-1B visas, according to Michael Porter, the university’s associate vice president for public relations.

“Many are employed in highly specialized STEM or medical teaching and research roles,” Porter said in an statement. “After the guidance was announced last week, VCU’s Global Education Office sent an email to VCU’s H-1B visa workforce informing them of the proclamation and the need to receive additional clarification.”

Critics: H-1B visas undercut American workers

H-1B visas, which require at least a bachelor’s degree, are meant to hire foreign workers for high-skilled jobs that tech companies find difficult to fill. However, Critics say the program undercuts American workers, luring people from overseas who are often willing to work for as little as $60,000 annually. That is well below the $100,000-plus salaries typically paid to U.S. technology workers.

At least 60% of H-1B visas approved since 2012 have been for computer-related jobs, according to the Pew Research Center. But hospitals, banks, universities and a wide range of other employers can and do apply for H-1B visas.

The number of new visas issued annually is capped at 65,000, plus an additional 20,000 for people with a master’s degree or higher. Those visas are handed out by a lottery. Some employers, such as universities and nonprofits, are exempt from the limits, though.

Trump on Friday insisted that the tech industry would not oppose the move. Lutnick, meanwhile, claimed “all big companies” are on board. Representatives for the biggest tech companies, including Apple, Google and Meta, did not immediately respond to messages for comment. Microsoft declined to comment.

Lutnick said the change will likely result in far fewer H-1B visas than the 85,000 annual cap allows because “it’s just not economic anymore.”

“If you’re going to train people, you’re going to train Americans,” Lutnick said on a conference call with reporters. “If you have a very sophisticated engineer and you want to bring them in … then you can pay $100,000 a year for your H-1B visa.”

Critics say H-1B spots often go to entry-level jobs, rather than senior positions with unique skill requirements. And while the program isn’t supposed to undercut U.S. wages or displace U.S. workers, critics say companies can pay less by classifying jobs at the lowest skill levels, even if the specific workers hired have more experience.

As a result, many U.S. companies find it cheaper to contract out help desks, programming and other basic tasks to consulting companies such as Wipro, Infosys, HCL Technologies and Tata in India and IBM and Cognizant in the U.S. These consulting companies hire foreign workers, often from India, and contract them out to U.S. employers looking to save money.

U.S. Sen. Mark Warner, Virginia’s senior Democratic senator, worries the fee will make the United States less competitive globally.

“[The] H1-B program is a critical tool that allows American companies and businesses to attract and retain the sharpest minds from around the world — especially those educated at American ,” Warner said in a statement. “This policy will punish skilled foreigners who add to our economy and critical industries and will push the American dream out of reach for many American companies and communities. The Trump administration is once again undermining American innovation and handing our adversaries a victory.”

 

Serco appoints new CEO

Michael LaRouche will succeed as of -based on Oct. 1.

According to a Monday news release, Watson is stepping down after seven years with Serco, the North American subsidiary of British parent company Serco Group. He became CEO in 2022, after four years as Serco’s senior vice president of defense business.

LaRouche most recently was founder and president of Emalar, a tech company focused on national security, according to his LinkedIn profile. He previously was president of the Science Applications International Corp. (SAIC) national security and space sector for five years.

Before joining SAIC, LaRouche was a vice president at Raytheon (now part of RTX) for 11 years. Before that, he held leadership roles at Lockheed Martin and Hughes Network Systems.

“Michael is an excellent appointment for Serco, and I am delighted to welcome him as our CEO for North America,” Serco Group CEO Anthony Kirby said in a statement. “Michael is a strategic leader and has deep experience in growing businesses, in the United States and internationally.”

LaRouche serves on the board of directors for the Intelligence and National Security Alliance, a nonprofit association focused on advancing intelligence and national security through public-private-academic partnerships. He previously served a three-year term that began in 2020.

He earned an undergraduate degree in electrical engineering from the University of Michigan and a master’s degree in the same subject from the University of Colorado.

Serco has more than 100 sites across North America and more than 10,000 employees across the U.S. and Canada. In May, it completed its $327 million purchase of Northrop Grumman’s mission training and satellite ground network communications software business. Parent company Serco Group reported almost 4.8 billion pounds — about $6.4 billion as of Tuesday — in 2024 revenue.

Powell signals Federal Reserve to move slowly on interest rate cuts

SUMMARY:

  • S&P 500 and Nasdaq slip while Dow inches higher after records
  • Nvidia drops 2% after rally tied to OpenAI partnership news
  • rises on Dreamliner order
  • Kenvue rebounds after Trump’s Tylenol-autism remarks
  • Gold hits record $3,800, up 45% this year on Fed rate-cut bets
  • Powell to speak following Fed’s first rate cut of 2025

WASHINGTON (AP) — Chair on Tuesday signaled a cautious approach to future interest rate cuts, in sharp contrast with other Fed officials who have called for a more urgent approach.

In remarks in Providence, Rhode Island, Powell noted that there are risks to both of the Fed’s goals of seeking maximum employment and stable prices. But with the rate rising, he noted, the Fed agreed to cut its key rate last week. Yet he did not signal any further cuts on the horizon.

If the Fed were to cut rates “too aggressively,” Powell said, “we could leave the job unfinished and need to reverse course later” and raise rates. But if the Fed keeps its rate too high for too long, “the labor market could soften unnecessarily,” he added.

Powell’s remarks echoed the caution he expressed during a news conference last week, after the Fed announced its first rate cut this year. At that time he said, “it’s challenging to know what to do.”

His approach is in sharp contrast to some members of the Fed’s rate-setting committee who are pushing for faster cuts. On Monday, , whom appointed to the Fed’s governing board, said that the Fed should quickly reduce its rate to as low as 2% to 2.5%, from its current level of about 4.1%. Miran is also a top adviser in the and expects to return to the White House after his term expires in January, though Trump could appoint him to a longer term.

And earlier Tuesday, Fed governor Michelle Bowman also said the central bank should cut more quickly. Bowman, who was appointed by Trump in his first term, said inflation appears to be cooling while the job market is stumbling, a combination that would support lower rates.

When the Fed cuts its key rate, it often over time reduces other borrowing costs for things like mortgages, car loans, and business loans.

“It is time for the (Fed) to act decisively and proactively to address decreasing labor market dynamism and emerging signs of fragility,” Bowman said in a speech in Asheville, North Carolina. “We are at serious risk of already being behind the curve in addressing deteriorating labor market conditions. Should these conditions continue, I am concerned that we will need to adjust policy at a faster pace and to a larger degree going forward.”

Yet Powell’s comments showed little sign of such urgency. Other Fed officials have also expressed caution about cutting rates too fast, reflecting deepening divisions on the rate-setting committee.

On Tuesday, , president of the Federal Reserve’s Chicago branch, said in an interview on CNBC that the Fed should move slowly given that inflation is above its 2% target.

“With inflation having been over the target for 4 1/2 years in a row, and rising, I think we need to be a little careful with getting overly up-front aggressive,” he said.

Last week the Fed cut its key rate for the first time this year to about 4.1%, down from about 4.3%, and policymakers signaled they would likely reduce rates twice more. Fed officials said in a statement that their concerns about slower hiring had risen, though they noted that inflation is still above their 2% target.