BERLIN (AP) — The German government on Wednesday trimmed its 2026 forecast for the country's economy, Europe's biggest, as growth picks up more slowly than previously hoped.
Chancellor Friedrich Merz's government now expects gross domestic product to expand by about 1% this year and 1.3% in 2027, Economy Minister Katherina Reiche said. In October, it had predicted growth of 1.3% and 1.4% respectively.
The economy returned to modest growth of 0.2% last year after shrinking for two years in a row, according to preliminary official figures released two weeks ago.
Merz's governing coalition took office in May, with revitalizing the economy as one of its priorities. It launched a program to encourage investment, set up a 500 billion-euro ($596 billion) fund to pour money into Germany’s creaking infrastructure over the next 12 years and cleared the way for increased defense spending. It is moving to subsidize energy prices for heavy industry, cut red tape and speed up the country’s lagging digitization.
“The background to the somewhat cautious estimate is the fact that the expected impetus from the financial and economic policy measures wasn't realized quite as quickly and to the extent that we assumed,” Reiche told reporters. But she said data now points to a “clear recovery.”
Germany for years expanded exports and dominated world trade in engineered products like industrial machinery and luxury cars. But it has suffered from increasing competition from Chinese companies, higher energy costs following Russia's full-scale invasion of Ukraine and many other factors that have increased risks, including U.S. President Donald Trump’s tariffs and trade threats.
German Chancellor Friedrich Merz arrives for the cabinet meeting at the chancellery in Berlin, Germany, Wednesday, Jan. 28, 2026. (AP Photo/Markus Schreiber)
Secretary of State Marco Rubio plans to warn Congress that President Donald Trump is ready to take new military action against Venezuela if the country’s interim leadership strays from U.S. expectations.
In prepared testimony for a hearing before the Senate Foreign Relations Committee, Rubio says the U.S. is not at war with Venezuela and that its interim leaders are cooperating, but notes that the Trump administration won't rule out using additional force if needed following its raid to capture former President Nicolás Maduro and bring him to New York City for trial.
Also, Homeland Security Secretary Kristi Noem faces rising calls for her firing or impeachment. From Democratic Party leaders to the nation’s leading advocacy organizations to even the most centrist lawmakers in Congress, the calls are mounting for her to step aside. At a defining moment in her tenure, few Republicans are rising to Noem’s defense.
And a man has been arrested after spraying an unknown substance on Democratic U.S. Rep. Ilhan Omar. The man was tackled to the ground Tuesday during a town hall in Minneapolis after Omar had called for the abolishment of ICE and for Noem to resign or face impeachment. Omar insisted on continuing to speak after the attack, saying she would not be intimidated by bullies.
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The president said on Truth Social that Minneapolis Mayor Jacob Frey is “PLAYING WITH FIRE” by not participating in the Trump administration’s federal immigration crackdown.
After talking Tuesday with Trump’s border czar Tom Homan, Frey said he “appreciated the conversation” but repeated that his “main ask” is for Homeland Security to end its operation in the city “as quickly as possible.”
“Minneapolis does not and will not enforce federal immigration laws,” Frey said. “We will remain focused on keeping our neighbors and streets safe.”
Trump asserted Wednesday in his social media post that “this statement is a very serious violation of the Law.”
Local authorities in the U.S. typically do not arrest people solely for immigration violations. Some local law enforcement agencies voluntarily assist federal operations. Trump has pressured and threatened so-called “sanctuary cities” to more aggressively take part in its immigration crackdown.
Prices for gold and silver soared early Wednesday ahead of an interest rate decision by the U.S. Federal Reserve. The expectation is that the central bank will hold its main interest rate steady for now.
The price of gold jumped 3.5% to $5,263 per ounce and silver’s price jumped 6.2%, to $112.50, putting both near record highs. Precious metal prices are rising as investors including major central banks sell dollars and park their money in assets considered to be relatively safe in times of turmoil.
The dollar has weakened since Trump threatened tariffs against European countries opposed to his taking control of Greenland. Such threats, along with worries about the U.S. government’s heavy debt, have periodically pushed global investors to step back from U.S. markets.
The caucus is calling on Republicans to “de-escalate the dangerous rhetoric that fuels attacks” like the one against their Democratic colleague.
“There is absolutely no excuse for violence and intimidation in our politics,” a caucus statement says. “Despite being subjected to constant right-wing attacks, she continues to lead and represent Minnesota’s 5th District with dignity and courage.”
The attack on Omar is the second in less than a week against a caucus member. Democratic Rep. Maxwell Frost of Florida, who identifies as Afro-Latino, was allegedly punched in the face by a man who said Trump was going to deport him.
A man sprayed an unknown substance on Democratic Rep. Omar and was tackled to the ground Tuesday during a town hall in Minneapolis.
The audience cheered as the man was pinned down and his arms were tied behind his back. In video of the incident, someone in the crowd can be heard saying, “Oh my god, he sprayed something on her.”
Just before that, Omar had called for the abolishment of ICE and for Secretary Noem to resign or face impeachment.
“ICE cannot be reformed,” Omar said, seconds before the attack.
Minneapolis police said officers saw the man use a syringe to spray an unknown liquid at Omar. They immediately arrested him and booked him at the county jail for third-degree assault, spokesperson Trevor Folke said. Forensic scientists responded to the scene.
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Two federal officers fired shots during the encounter that killed ICU nurse Alex Pretti over the weekend in Minneapolis, a Customs and Border Protection official told Congress in a notice sent Tuesday, while Ecuador’s minister of foreign affairs filed an objection saying immigration agents tried to enter the country’s consulate in the city without permission.
Officers tried to take Pretti into custody and he resisted, leading to a struggle, according to a notification to Congress obtained by The Associated Press. During the struggle, a Border Patrol agent yelled, “He’s got a gun!” multiple times, the official said.
A Border Patrol officer and a CBP officer each fired Glock pistols, the notice said.
Investigators from CBP’s Office of Professional Responsibility conducted the analysis based on a review of body-worn camera footage and agency documentation, the notice said. The law requires the agency to inform relevant congressional committees about deaths in CBP custody within 72 hours.
The developments came a day after Trump ordered border czar Tom Homan to take over his administration’s immigration crackdown in Minnesota.
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Homeland Security Secretary Kristi Noem speaks about the man in Minneapolis who was killed by a federal immigration officer earlier in the day during a news conference at the Federal Emergency Management Agency headquarters, Saturday, Jan. 24, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)
A groundswell of voices have come to the same conclusion: Kristi Noem must go.
From Democratic Party leaders to the nation’s leading advocacy organizations to even the most centrist lawmakers in Congress, the calls are mounting for the Homeland Security secretary to step aside after the shooting deaths in Minneapolis of two people who protested deportation policy. At a defining moment in her tenure, few Republicans are rising to Noem’s defense.
“The country is disgusted by what the Department of Homeland Security has done,” top House Democratic Reps. Hakeem Jeffries of New York, Katherine Clark of Massachusetts and Pete Aguilar of California said in a joint statement.
“Kristi Noem should be fired immediately,” the Democrats said, “or we will commence impeachment proceedings in the House of Representatives.”
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Rubio plans to warn that the Trump administration is ready to take new military action against Venezuela if the country’s interim leadership strays from U.S. expectations.
In prepared testimony for a hearing before the Senate Foreign Relations Committee, Rubio says the U.S. is not at war with Venezuela and that its interim leaders are cooperating, but he notes that the Trump administration would not rule out using additional force if needed following a raid to capture former President Nicolás Maduro early this month.
As he often is called to do, Rubio, a former Florida senator, will aim to sell one of Trump’s more contentious priorities to former colleagues in Congress. With the administration’s foreign policy gyrating between the Western Hemisphere, Europe and the Middle East, Rubio also may be called to smooth alarm that has emerged in his own party lately about efforts like Trump’s demand to annex Greenland.
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White House deputy chief of policy Stephen Miller walks from Marine One after arriving on the South Lawn of the White House, Tuesday, Jan. 27, 2026, in Washington. (AP Photo/Alex Brandon)
Rep. Ilhan Omar, D-Minn., speaks during a town hall in Minneapolis, Tuesday, Jan. 27, 2026. (Richard Tsong-Taatarii/Star Tribune via AP)
President Donald Trump waves as he walks from Marine One after arriving on the South Lawn of the White House, Tuesday, Jan. 27, 2026, in Washington. (AP Photo/Alex Brandon)
FILE - Secretary of State Marco Rubio speaks to reporters while meeting with Armenian Foreign Minister Ararat Mirzoyan at the State Department in Washington, Jan. 13, 2026. (AP Photo/Cliff Owen, File)
