Good Morning! Today’s edition is 926 words, a 4-minute read.

What’s on tap: 

• Grok gets blocked

• Trump announces Iran tariffs

• Best US cities for job prospects

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Big Stories

Powell Faces Criminal Probe

• The Justice Department issued grand jury subpoenas to the Federal Reserve as part of a criminal investigation into Chair Jerome Powell, alleging he misled Congress about cost overruns in the Fed’s $2.5 billion building renovation.

• Powell says the renovation claims are misleading and insists the probe is a pretext to pressure the Fed over interest rates. He warned that the threat of charges is retaliation for setting rates based on economic data rather than the preferences of President Trump. Trump denied knowledge of the investigation but criticized Powell's performance.

• Lawmakers from both parties called the investigation an attack on Fed independence, with some vowing to block future Fed nominees. Powell says he will remain in office and continue setting policy without political influence, warning that undermining the Fed risks higher borrowing costs and economic instability. Powell's term as chair ends in May 2026.

NYC Nurses Strike

• About 15,000 nurses at three major New York City hospital systems went on strike Monday after weekend negotiations failed to produce contract agreements. Nurses at NewYork-Presbyterian, Mount Sinai, and Montefiore are demanding better staffing levels, improved workplace safety, limitations on AI use, and protection of health benefits they say hospitals are trying to roll back.

• The strike follows a 2023 walkout that secured nurses a 19% pay raise over three years and staffing improvements. The union says hospitals are now retreating on those staffing guarantees while cutting benefits. Hospitals counter that union demands are too costly, with Montefiore claiming the union is pressing "$3.6 billion in reckless demands."

• The hospitals hired droves of temporary nurses to fill the labor gap and remain fully operational. Mount Sinai alone lined up 1,400 temporary nurses. The hospitals said they were prepared to deliver care "no matter how long the strike lasts."

Countries Block X's Grok

• Indonesia and Malaysia temporarily blocked X's chatbot Grok over the weekend, and the UK media regulator Ofcom launched an investigation Monday that could result in a ban.

• Grok had been generating sexually explicit images of real people, including women and children, without their consent. Users discovered they could tag the chatbot in comments with prompts like "put her in a bikini," and Grok would edit existing photos to comply. The issue gained widespread attention in late December as the volume of such images surged on X.

• X responded by restricting the feature to paying subscribers at $8 per month rather than removing it entirely. The company said users creating illegal content would face consequences, but advocates say X is abdicating responsibility by blaming users for a tool it built.

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Quick Stories

US News

• President Trump announced 25% tariffs on countries trading with Iran, as his administration pressures Tehran during nationwide anti-government protests. (More)

• A judge changed course and will hold a hearing on whether police legally searched Luigi Mangione's backpack during his arrest for killing UnitedHealthcare's CEO. (More)

• Former Representative Mary Peltola entered Alaska's Senate race, giving Democrats a credible candidate against Republican Dan Sullivan. (More) | Senator Mark Kelly sued the Pentagon after Defense Sec. Hegseth censured him for a video urging troops to resist illegal orders. (More)

World

• Police arrested an alleged mastermind of Canada's biggest gold heist Monday at the same Toronto airport where thieves stole 6,600 gold bars worth $15 million in April 2023. (More)

• Britain will develop 300-mile-range missiles for Ukraine that can strike Russian targets and withdraw within minutes before counterattack. (More)

• Meta removed over 550,000 Australian accounts of users under 16 to comply with a new law banning social media for youth that took effect in December. (More)

Business & Economy

• US stock markets closed higher on Monday (S&P +0.16%, Nasdaq +0.26%, Dow +0.17%). Stocks rallied to record highs despite the DOJ opening a criminal investigation into Fed Chair Powell. (More)

• Alphabet reached $4 trillion in value after Apple chose Google's Gemini AI to power Siri, becoming the fourth tech giant to hit that mark. (More)

• Meta hired Dina Powell McCormick as president and vice chairman, a former Trump national security advisor who briefly served on Meta's board before resigning in December. (More)

Sports & Entertainment

• Brooks Koepka will return to the PGA Tour at the Farmers Insurance Open in late January under a new program letting some LIV Golf players rejoin. (More)

• The WNBA and its players union agreed to a business moratorium after failing to reach a new labor deal, freezing free agency while they negotiate over revenue sharing. (More)

• The Steelers lost 30-6 to Houston, extending Mike Tomlin's playoff losing streak to seven games and possibly ending Aaron Rodgers' career with two fourth-quarter turnovers returned for touchdowns. (More)

Science, Health, & Tech

• Astronauts' brains tilt upward and shift backward in their skulls during spaceflight by a couple of millimeters, enough to cause balance issues. (More)

• Exercise works as well as antidepressants for depression, a review of 73 studies found, but doctors still underprescribe it even though it's cheap, safe, and boosts brain chemistry. (More)

• Your stomach produces acid strong enough to dissolve metal, but it protects itself with a thick, alkaline mucus layer that constantly renews to shield the lining from digestion. (More)

Extra Credit

What time you should wake up depends on your chronotype.

Comic that introduced the world to Superman sells for $15M.

Mattel adds an autistic Barbie to doll line.

Ranking US cities for job prospects in 2026.