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Economy: The Federal Reserve is likely to leave interest rates unchanged at a 23-year high as it concludes its two-day policy meeting today, putting the focus on what, if anything, is said about when rates may be lowered. The central bank releases its policy statement at 2 p.m., and Fed Chair Jerome Powell will hold a news conference at 2:30 p.m.

Israel-Hamas War: The question of who should govern Gaza after Hamas is one of the toughest political decisions that Israeli Prime Minister Benjamin Netanyahu has faced during his long career, but so far he is dodging it.

The GOP-led House Homeland Security Committee voted along party lines, charging that Mayorkas has failed to properly enforce the nation’s immigration laws, reports Michelle Hackman. Mayorkas is accused of demonstrating a “willful and systemic refusal to comply with the law” and “breaching the public trust”—which critics of both parties say don’t amount to impeachable crimes. The committee action could set up an impeachment vote in the full House as soon as next week. Mayorkas is expected to be acquitted by the Democratic-controlled Senate and remain in office.

The deal—which would revive business tax breaks and expand the child tax credit—sailed through the House Ways and Means Committee 40-3 this month, with the only votes against it coming from Democrats, report Richard Rubin and Lindsay Wise. Then, the plan started picking up Republican opposition, with some saying that the proposed expansion of the child tax credit would undermine incentives to work and others saying that immigrants who are in the country unlawfully could get some of the benefits. House Speaker Mike Johnson (R., La.) said Tuesday that he is working toward a consensus. He hasn’t scheduled a vote yet, though it could come as soon as this week.

In other politics news...

• Nathan Wade, Prosecuting Trump in Georgia, Reaches Deal That Avoids Testimony in Divorce (Read)

• He Taught AP History. Now He Targets Teachers for Being Too Woke. (Read)

The declining quits rate will limit how fast wages grow, as companies are less pressured to attract and keep workers, said Brett Ryan, senior U.S. economist at Deutsche Bank, reports Austen Hufford. That could be good for the Federal Reserve, which has been working to tame inflation, but not appreciated by workers seeking raises.

• Home-Price Growth Accelerated in November (Read)

In other economic news...

• Negative Takes on China’s Economy Are Getting Pulled Offline (Read)

• China’s Economic Pain Worsens as Real-Estate Sales Plummet (Read)

Senior European leaders are starting to discuss how to prepare for and react to a potential change of U.S. administration, but are struggling to agree on the steps to take, reports Daniel Michaels. The question they face is whether the continent can convince Trump it isn’t free-riding, as he has said it is. Campaigning in Las Vegas on Saturday, Trump criticized Europeans for insufficient military spending.

The leader of Iranian-backed Kataib Hezbollah called the move temporary and warned against “hostile American action,” report David S. Cloud and Ken Thomas. The announcement underscored the growing alarm in the region that U.S. reprisal for the attack that killed three American soldiers could escalate into a wider clash. President Biden said Tuesday that he had decided on the U.S. response, emphasizing that the U.S. held Iran responsible but didn’t seek war with Tehran.

• ▶️Video: Disguised Israeli Forces Storm West Bank Hospital (Watch)

In other world news...

• Venezuela Threatens to Stop Accepting Venezuelans Deported from U.S. (Read)

Meta's Mark Zuckerberg could take heat in a Senate Judiciary Committee hearing today over internal Meta documents released by two lawmakers that show top company officials asking him to invest in additional protections for children on their platforms, report John D. McKinnon and Ryan Tracy. Those requests weren't granted. The Wall Street Journal has highlighted persistent dangers to children on social-media platforms in recent years, including how Instagram’s algorithms connect a network of pedophiles and how TikTok’s algorithm serves teens weight-loss videos and other concerning content. The industry also faces a wave of lawsuits from people who say they have been harmed by social media and from state attorneys general making similar claims.

In other regulatory news...

• Missing Boxes, an Email From China: How a Chip Shipment Sparked a U.S. Probe (Read)

• Business Groups Sue California to Block Climate Disclosures (Read)

The Missouri Democratic representative said federal prosecutors are reviewing her spending records on security services, report Katy Stech Ferek and Sadie Gurman. Bush, a Democrat elected in 2020 who has aligned herself with “the squad” of outspoken House progressives, married security guard Cortney Merritts in 2023. She said she is cooperating with that investigation and denied improperly spending campaign money.

In other legal news...

• Elon Musk’s $55.8 Billion Tesla Pay Package Struck Down by Judge (Read)

• Rep. Jamaal Bowman (D., N.Y.) promoted conspiracy theories about 9/11 on his personal blog during his previous career as a middle school principal. (Daily Beast)
• Proposals aimed at dismantling diversity, equity and inclusion programs on college campuses have been introduced in 21 states since 2021, and nine of the states have approved such laws. (Axios)
• Congress is moving closer toward using frozen Russian assets for Ukraine reparations, raising complex legal questions about the seizure and repurposing of the foreign assets of a country with which the U.S. isn't at war. (National Journal)

Yesterday, we asked how the U.S. should respond to the attacks by Iran-based militias on American forces in the Middle East.

The recent attack on our base in Jordan and the loss of three of our service people needs to be answered. It should be swift and strong, albeit measured. The targets should include any and all Iranian and proxy naval vessels supplying radar and other information regarding vessel movements in the Red Sea; Iranian Guard-based and manned positions in Iraq, Syria and Yemen; and supplies of drones, missiles and offensive attack materials in these areas. All should be hit at once in a coordinated attack, which should send the needed message that enough is enough.
–Kenneth J. Goldstein, Maine

It all comes down to eliminating their source of money, used for sponsoring terrorism. Reinstitute the Trump sanctions and bomb their major ports. Then say, "We don't want war. This is just a response to Iran's sponsoring of terrorism. We can end it here."
–Camille Harris, California

Iran is the source of the attacks on Americans in the Middle East. Iran’s mullahs rely on oil revenues to support their terrorism efforts. Attacks that disable Iran’s refineries and oil-exporting facilities will most certainly get the mullahs' attention. Civilian casualties will be minimal from such attacks.
–Jim Miller, Texas

Responses have been condensed and edited.

Do the accusations against Homeland Security Secretary Alejandro Mayorkas amount to impeachable offenses?

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