INDIANAPOLIS (WISH) — Here’s a look at Monday’s business headlines with Jeff Vaughn, who has the latest on interest rates, flight cancellations, and a big week on Wall Street.
Fed decision expected this week
The Federal Reserve is expected to announce its next interest rate decision this week after it holds its first meeting of 2026 on Tuesday. Economist Mark Zandi with Moody’s predicts the Fed may move quickly and look for three rate cuts in 2026.
On Wednesday, each of the “American Magnificent 7” tech companies will deliver earnings reports. Traders expect earnings to increase by almost 17%.
Winter storm wreaks havoc
Over 3,700 flights have already been canceled for Monday due to the winter storm that impacted the U.S. from New Mexico to New England. U.S. airlines canceled more than 10,000 flights on Sunday, according to FlightAware.
At 8 a.m., there were 63 canceled flights and 9 delayed flights at Indianapolis International Airport.
Power outages, electric bills rise as temps drop
Power outages are rising as temperatures drop, with major blackouts reported in Texas, Mississippi, and Tennessee.
The recent winter storm has caused power prices to spike. According to Reuters, some customers across the East and Mid-Atlantic saw electricity prices surge to above $3,000 per megawatt hour, up from $200 earlier in the day. At the center of the strain is the nation’s heavy dependence on natural gas, which fuels roughly 40% of U.S. electricity generation.
Larger tax refunds on the way
The Tax Foundation reports that the average tax refund will grow from $3,052 in 2024 to $3,800 for tax year 2025. The “Big Beautiful Bill,” which passed in July, extended 2017 tax cuts and enacted new measures, including deductions for Social Security benefits, an increase in the child tax credit, and deductions for taxes on tips and overtime.