Arctic Blast, Shutdown Fix, Fed Hold: What To Know Now

Here are five developments shaping the day: a dangerous Arctic blast is gripping tens of millions across the Eastern U.S., Congress has ended a brief partial shutdown, the Federal Reserve held interest rates steady, Canada-U.S. trade tensions are back in focus, and India reports a contained Nipah virus cluster.

Bitter Cold Deepens

An intense winter storm and subsequent Arctic air extended from the Carolinas up the East Coast, snarling travel and knocking out power in pockets of the South. Forecasters warned of hazardous wind chills through the weekend in some areas, while Charlotte, North Carolina, saw one of its heaviest snowfalls in years and parts of West Virginia plunged well below zero. Officials urged residents to limit exposure and check on vulnerable neighbors as utilities worked to restore service.

Shutdown: One Hurdle Cleared

After a weekend lapse in funding, the House passed a narrow spending package on February 3 to end a partial government shutdown, and President Donald Trump signed it into law. The deal funds most agencies through September 30 but gives the Department of Homeland Security just two more weeks, setting up another deadline for negotiations over immigration enforcement policies. The Senate had cleared the package 71–29 on January 30, but the House’s later schedule triggered the brief shutdown before final passage.

Fed Holds Rates Steady

The Federal Reserve left its benchmark rate unchanged, signaling patience as inflation remains somewhat elevated and the job market appears to stabilize. The target range stays at 3.5%–3.75% after three cuts in late 2025. Policymakers emphasized they will watch incoming data before considering any further moves, with two officials dissenting in favor of a small cut. Markets broadly expected the hold.

Canada Tariffs Back In Focus

Trade tensions are again in the spotlight after renewed U.S. tariff threats against Canada. Ottawa previously rolled back many of its retaliatory measures in 2025 while keeping some duties tied to metals and autos, but is prepared to respond if Washington escalates. Trump’s recent warning of potential 100% tariffs on Canadian imports has injected fresh uncertainty into supply chains closely integrated across the border.

Nipah Cases Contained

Indian health authorities say they have contained a Nipah virus cluster in West Bengal after confirming two cases among hospital staff. All identified contacts—nearly 200 people—tested negative, and enhanced surveillance and infection-control measures remain in place. While Nipah is a high-fatality zoonotic virus, officials stress there is no evidence of wider community transmission in this episode.

Sources

• Snow hits the Carolinas as low temps compound power outage woes elsewhere from last weekend’s ice — Associated Press (January 31, 2026)
• Senate passes funding deal, but short-term shutdown still expected — Washington Post (January 30, 2026)
• Trump signs bill to end partial government shutdown, setting stage for next fight — Associated Press (February 3, 2026)
• Fed Holds Interest Rates Steady, Nods to ‘Stabilization’ in Jobless Rate — Bloomberg (January 28, 2026)
• Canada’s response to U.S. tariffs — Government of Canada (September 1, 2025)
• India says it has contained Nipah virus outbreak as some Asian countries ramp up health screenings — Associated Press (January 28, 2026)