What if Sen. Bernie Sanders is right and Federal Reserve Chair Jerome Powell is wrong?

What if the AI revolution causes mass layoffs of American workers, as the Vermont senator warned in a recent Fox News op-ed? And what if Powell is wrong that the softening labor market is due primarily to supply issues — lower immigration and a lower labor participation rate — rather than AI-produced ‘efficiencies’?

What will be the response of policymakers? What should it be?

AI will soon become a political battleground. Democratic socialist Sanders, ever the class warrior, has already questioned whether AI will help all Americans or only ‘a handful of billionaires.’ Like the trade deals that sent millions of jobs overseas, Sanders worries that the massive investment flowing into AI could result in up to 100 million Americans losing their jobs over the next decade. He could be right; imagine the repercussions.

Young people are already losing faith in capitalism and cozying up to socialism. Two-thirds of Democrats now view socialism more positively than capitalism. Nothing could undermine our capitalist system faster than widespread job losses stemming from a tech breakthrough cheered by the investor class.

This is the critical issue of our day — one getting scant attention, even from self-described ‘data-driven’ Powell, who is perennially looking backward rather than forward. In his latest press conference, Powell answered one question about employment by saying, ‘The supply of workers has dropped very, very sharply due to mainly immigration, but also lower labor force participation. So, and that means there’s less need for new jobs, because there’s — there isn’t this flow into the pool of labor where people need jobs.’ Excuse me, what?

The economy is growing, yet hiring is declining. Though the government shutdown has blocked the usual monthly labor reports, plenty of data suggests the job market is weakening. Companies are increasingly citing AI investment as a factor in lower headcounts.

Corporate America is spending tens of billions of dollars on AI, promising shareholders great gains in productivity. But where will that productivity come from, other than reducing headcounts? Certainly, people armed with artificial intelligence can deliver information and analyses more rapidly, making themselves and their organizations more productive. But ultimately, it will also make some people redundant and slow new hiring. The impact on America’s labor market will be profound — and is largely being ignored.

Amazon recently announced it was laying off 14,000 employees. A top human resources official at the firm sent a note titled ‘Staying nimble and continuing to strengthen our organizations.’ She wrote that ‘the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before.’

What kinds of workers are at risk? Factory workers and truck drivers, for sure, who are already being replaced by robots and AI — but also white-collar employees. Fortune notes that the Amazon layoffs ‘show it’s coming for middle management first.’ The world’s largest retailer employs about 1.5 million people; 14,000 is a drop in the bucket. But the trend is worrisome — and for those 14,000 people, devastating.

Amazon is not alone. UPS recently announced it has cut 48,000 jobs this year — 14,000 management positions and 34,000 in operations. UPS started the year with about 500,000 employees. Target also made headlines recently, saying it will cut 8% of its corporate workforce — its first significant layoffs in a decade.

Outplacement firm Challenger, Gray & Christmas cites market and economic conditions as the main reason for most corporate layoffs to date but also points to AI. That makes sense. After all, the economy is growing briskly — second-quarter real GDP growth was 3.8%, and it looks like we’ll see robust expansion for the third quarter as well.

There has never been a faster adoption of new technology. Already, an estimated one-third of Americans use AI; ChatGPT receives 5.4 billion visits per month. Global AI revenues are expected to total $391 billion this year and could reach $3.5 trillion by 2033. These estimates may be optimistic, but top tech firms are investing about $400 billion this year alone to expand capacity, according to The Wall Street Journal. They clearly believe the projections.

Bernie Sanders aside, no one should want to halt the AI revolution. Artificial intelligence promises extraordinary advances in medicine and other sciences — and could radically improve education for America’s children.

It’s also largely American companies that will benefit from the explosion in AI spending, reaping the profits and influence that come with global dominance of a new technology. Rising productivity will spur hiring in certain industries and boost real wages. It will also allow for the retirement of the 20-plus million baby boomers still working.

But there may well be a period of adjustment when layoffs exceed job creation. Unemployment may rise, fueling anger at the innovations producing more out-of-work Americans and resentment toward the companies behind the disruptions.

Lawmakers and financial leaders need to be prepared for this possibility — one that could deepen voters’ growing affection for socialism and rejection of capitalism. That would be a disaster for a country that has outperformed every other nation on Earth, producing unprecedented opportunity and wealth.

Otherwise, it will be Bernie Sanders and his left-wing colleagues dictating the response. Sanders advocates a 32-hour workweek with no loss in pay, giving workers significantly more power and imposing a ‘robot tax’ on big tech companies. Such measures would slow American competitiveness and growth, as they have in Europe.

We cannot allow that to happen.

The Department of Justice on Monday urged a federal court to reject former FBI Director James Comey’s bid to dismiss his case, arguing that his claims of selective prosecution are unfounded.

The DOJ, in its 48-page filing, also denied that President Donald Trump’s September Truth Social post calling on U.S. Attorney General Pam Bondi to prosecute prominent political adversaries, including Comey, Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James, had any influence on the decision to bring charges.

‘These posts reflect the President’s view that the defendant has committed crimes that should be met with prosecution. They may even suggest that the President disfavors the defendant. But they are not direct evidence of a vindictive motive,’ prosecutors argued.

‘The defendant spins a tale that requires leaps of logic and a big dose of cynicism, then he calls the President’s post a direct admission,’ they continued. ‘There is no direct admission of discriminatory purpose. To the contrary, the only direct admission from the President is that DOJ officials decided whether to prosecute, not him.’

Trump wrote in a Sept. 20 post on his Truth Social platform that ‘nothing is being done’ to Comey, Schiff or James.

‘They’re all guilty as hell,’ he said. ‘They impeached me twice, and indicted me (5 times!), OVER NOTHING. JUSTICE MUST BE SERVED, NOW!!!’

The Wall Street Journal reported that the public Truth Social post was intended as a private message to Bondi.

Comey was indicted by a federal grand jury in late September on charges of false statements and obstructing a congressional proceeding. He pleaded not guilty.

His legal team filed a motion on Oct. 20 to dismiss the indictment on grounds of vindictive and selective prosecution. They also argued that Lindsey Halligan, the interim U.S. Attorney for the Eastern District of Virginia, was unlawfully appointed.

Halligan, Trump’s former personal attorney, was appointed by the president after Erik Siebert, the former U.S. Attorney for the Eastern District of Virginia, resigned. Siebert reportedly resigned amid mounting pressure from the White House to bring charges against Comey and James.

‘The official who purported to secure and sign the indictment was invalidly appointed to her position as interim U.S. Attorney. Because of that fundamental constitutional and statutory defect, the indictment is a nullity and must be dismissed,’ Comey’s legal team wrote.

The Justice Department maintains that Halligan’s appointment as interim U.S. attorney was lawful, arguing that it was in line with federal statute and the Constitution’s Appointments Clause.

Comey’s trial is scheduled to begin in January 2026.

While President Donald Trump is pressuring Senate Republicans to nix the filibuster, Senate Majority Leader John Thune, R-S.D., said during an interview on Fox News Radio’s ‘Guy Benson Show’ that ‘there just simply aren’t the votes’ to eliminate the ’60-vote threshold.’

While Republicans hold the majority in the upper chamber, the procedural hurdle serves as a check on the majority party’s power due to the threshold required to advance matters towards a vote in the chamber.

Thune suggested that there is likely no more than 10 to 12 of the 53 GOP senators who would vote to eliminate the filibuster.

The senator said it had been an ‘important tool’ for Republicans when they had the minority, noting that last year they ‘blocked a whole host of terrible Democrat policies’ due to ‘the 60-vote threshold.’

While Thune suggested that Democrats would vote to eliminate the filibuster if they have the majority, he warned that if Republicans ‘do their dirty work for them,’ Republicans will ‘own all the crap’ Democrats would later do.

President Donald Trump is pushing Republicans to end the procedural hurdle.

‘The Democrats are far more likely to win the Midterms, and the next Presidential Election, if we don’t do the Termination of the Filibuster (The Nuclear Option!), because it will be impossible for Republicans to get Common Sense Policies done with these Crazed Democrat Lunatics being able to block everything by withholding their votes. FOR THREE YEARS, NOTHING WILL BE PASSED, AND REPUBLICANS WILL BE BLAMED. Elections, including the Midterms, will be rightfully brutal,’ the president declared in a portion of a lengthy Truth Social post.

‘TERMINATE THE FILIBUSTER NOW, END THE RIDICULOUS SHUTDOWN IMMEDIATELY, AND THEN, MOST IMPORTANTLY, PASS EVERY WONDERFUL REPUBLICAN POLICY THAT WE HAVE DREAMT OF, FOR YEARS, BUT NEVER GOTTEN. WE WILL BE THE PARTY THAT CANNOT BE BEATEN – THE SMART PARTY!!!’ he declared.

As the ceasefire between Israel and Hamas continues to play out, the USAID Office of the Inspector General (USAID OIG) pursues its investigation into allegations of U.S. taxpayer dollars being diverted to foreign terrorist organizations.

A U.S. diplomatic official briefed on USAID OIG’s ongoing investigations told Fox News Digital that the OIG’s office ‘received and continues to receive reports directly from aid workers and other parties on the ground that counters the sanitized narrative that Hamas was never involved in the theft of American funded aid.’ The official reported that reports are still being ‘sent in by whistleblowers and aid workers who are fed up with the U.N.’s failure to identify Hamas as the culprit.’

USAID OIG issued its first warnings about the possible diversion of American aid to Gaza in Nov. 2023, noting that it was an ‘investigative priority to ensure that assistance does not fall into the hands of foreign terrorist organizations (FTOs), including, but not limited to, Hamas.’

In a July 30 update, USAID OIG reported that it was ‘investigating credible allegations of Hamas interference, diversion, and theft of humanitarian aid in Gaza, as well as allegations of smuggling contraband into Gaza through humanitarian aid shipments.’

The United Nations has admitted that most of the aid it sent into Gaza after May 2025 was diverted by armed actors and hungry Gazans. Yet the United Nations Office for the Coordination of Humanitarian Affairs has stated that Hamas was not responsible for widespread aid diversion.

In July, Reuters reported that a USAID analysis found little evidence of Hamas theft of Gaza aid, something the State Department and the White House disputed. Anna Kelly, a White House spokesperson, told Reuters that it ‘was likely produced by a deep state operative,’ seeking to discredit President Donald Trump’s ‘humanitarian agenda.’

Over half of USAID programming is obligated to U.N. organizations. However, the USAID OIG reported in July 2024 that since October 2023, it had received ’17 reports of alleged misconduct from five USAID-funded implementers,’ only two of which were submitted by U.N. organizations.

The OIG also noted that U.N. organizations were exempt from USAID’s partner vetting process, which ‘creates risk to USAID’s programs.’

The diplomatic source also reported seeing U.N. duplicity over food deliveries into Gaza firsthand. The source attended Joint Coordination Board meetings where officials from the Israel Defense Forces, U.S. Army, U.S. aid organizations, the U.N. and the International Committee of the Red Cross had ‘robust, extensive, and productive’ discussions about aid deliveries and appeared to share ‘a sense of mission.’

‘It was shocking then to read press releases by those same U.N. agencies, the very next day totally body-slamming the government of Israel for failing to coordinate delivery of aid,’ the official said.

Much of the USAID OIG’s effort since the outbreak of war following Hamas’ Oct. 7 attacks has concerned Hamas’ infiltration of the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

The office concluded an investigation in April 2025 that found three UNRWA members were connected with the Oct. 7 attack and another 14 were affiliates of Hamas.

UNRWA previously fired nine employees for their association with the attacks, according to reports.

In July, USAID OIG reported being ‘unable to obtain from UNRWA’ the names of the personnel it fired.

The diplomatic source said that the USAID OIG investigators ‘opened an independent investigation, obtaining information that UNRWA refused to provide through other sources and methods,’ with the goal of ensuring ‘that UNRWA officials associated with Hamas do not recirculate to other U.S. taxpayer-funded organizations operating in Gaza,’ the official said.

Chairman of the House Oversight and Government Reform Committee, Rep. James Comer, R-Ky., has begun an investigation into UNRWA staff participation in the Oct. 7 attacks, which led to over 1,200 Israelis and 32 Americans being killed and 251 people taken hostage.

In an open letter to U.N. Secretary-General António Guterres dated Oct. 27, Comer requested unredacted copies of a U.N. Office of Internal Oversight Services (OIOS) report into UNRWA participation in the deadly attack and asked for correspondence and other details about staff who were investigated for their possible roles.

Comer noted that the U.S. provides 22% of the U.N.’s general budget, 40% of its humanitarian budget and 25% of its peacekeeping budget, in addition to providing $343 million in 2022 and $422 million in 2023 to UNRWA. ‘The requested documents and communications are required for verification that no U.N. entity or NGO receiving American taxpayer funds employs individuals affiliated with or supporting terrorist entities,’ Comer said.

Stéphane Dujarric, spokesperson for Guterres, told Fox News Digital that the U.N. has been ‘sharing information with the United States government on matters raised in the letter. We are presently considering the committee’s request and intend to respond with relevant information.’ Dujarric said he would ‘not say anything more publicly at this time.’

William Deere, director of the UNRWA Representative Office in Washington, D.C., told Fox News Digital that ‘the United Nations provided the USAID IG with an unredacted copy of the U.N. Office of Internal Oversight Services (OIOS) investigation report months ago. To suggest information is being withheld from the U.S. is simply disingenuous. Following the government of Israel’s initial allegations in January of 2024 of potential UNRWA staff misconduct, Commissioner-General Lazzarini immediately terminated the appointments of the named staff ‘in the interest of the Agency,’ to protect UNRWA’s ability to deliver humanitarian assistance.’

Deere claimed that, ‘regrettably, since that time the government of Israel has failed to provide the United States, the United Nations, or UNRWA with the information and evidence that would substantiate its claims against UNRWA employees. Significantly, the government of Israel has also failed to take action against any of the named individuals in their own judicial system. The record is clear, UNRWA investigates every claim brought to it of potential employee misconduct, as evidenced by the multiple requests the agency has made to the Israeli government for the information in these cases.’

The U.S. diplomatic official familiar with UNRWA’s investigation disputes the U.N.’s assertion that members of Hamas do not remain on UNRWA’s payroll, saying that ‘Perhaps ‘some’ of the Oct. 7 terrorists were removed, but UNRWA continues to employ Hamas members, there is no question. They are a subsidiary of Hamas.’

A report on Monday by the Washington Free Beacon said a confidential copy of the U.N. Office of Internal Oversight Services (OIOS) report on UNRWA members’ participation in the Oct. 7 attack claimed to show that OIOS dismissed the evidence provided by Israeli intelligence of intercepted calls between Hamas personnel and UNRWA staff as ‘likely authentic’ but ‘insufficient’ proof of cooperation to support the firing of 10 additional UNRWA employees. Additionally, the report said that the U.N. ‘did not investigate ties to Hamas outside participation in the Oct. 7 attacks.’

Foundation for Defense of Democracies Senior Advisor Richard Goldberg told Fox News Digital that ‘UNRWA was Hamas in Gaza. It remains a terror and radicalization threat elsewhere. When Israel banned UNRWA in Gaza, it was quickly replaced by other U.N. agencies and NGOs. UNRWA proved neither indispensable nor irreplaceable — a lie repeated by many.’

‘We also need to dismantle the entire agency in the context of deradicalization,’ Goldberg said. ‘Oct. 7 will keep happening again and again so long as UNRWA exists. The Trump plan will fail where UNRWA is present. Arab countries are making peace with Israel. UNRWA is still waging the war of 1948.’

USAID OIG confirmed that its ‘investigations of UNRWA officials affiliated with Hamas are active and ongoing, and intended to prevent the recirculation of terrorists to other U.S.-funded organizations operating in Gaza.’

In response to questions about whether the State Department had utilized the USAID OIG report on UNRWA members’ participation in Oct. 7 attacks, a spokesperson told Fox News Digital that ‘As a general matter, the department does not comment on internal or investigative reports, nor on actions that may be under consideration. UNRWA was complicit in Oct. 7 and is unfit for purpose. Our policy is that it will not play a role in Gaza again.’

Senate Democrats blocked Republicans’ attempt to reopen the government for a 14th time, all but ensuring that the government shutdown becomes the longest in U.S. history.

The move to again reject the House-passed continuing resolution (CR) comes as winds of optimism and exhaustion have swept through the upper chamber. Lawmakers are engaging in more bipartisan talks, and more believe that an off-ramp is in sight.

Still, Tuesday morning’s vote against the CR came as the shutdown matched the previous 35-day record set in 2019, and it all but ensured that it would surpass that unfortunate milestone later on in the evening.

Senate Minority Leader Chuck Schumer, D-N.Y., and his Democratic caucus are still largely entrenched in their position that unless an ironclad deal on expiring Obamacare subsidies is struck, they won’t reopen the government.

During a speech on the Senate floor, Schumer squarely placed the blame for the healthcare issue on Republicans and President Donald Trump as Americans got notices of increased premiums over the weekend. 

‘The only plan Republicans have for healthcare seems to be to eliminate it, and then to tell working people to go figure it out on their own,’ he said. ‘That’s not a healthcare plan. That’s cruel.’ 

However, his caucus’ resolve showed signs of weakening on Monday, when a group of nearly a dozen Senate Democrats met behind closed doors to discuss a way out.

Senate Majority Leader John Thune, R-S.D., said he was optimistic about the shutdown coming to an end soon, but he wasn’t confident that it would be by the end of this week.

He noted that Republicans have made a plethora of options available to Senate Democrats, including guaranteeing a vote on the expiring subsidies, or ‘whatever their Obamacare bill is,’ after the government reopens. When asked if he believed lawmakers were close to reaching an end, he said, ‘I hope close.’ 

‘But the pressures, the cross pressures that everybody’s feeling, are great,’ Thune said. ‘But I think there are people who realize this has gone on long enough and that there’s been enough pain inflicted on the American people, and it’s time to end it. So we’ll see whether that’s, you know, sufficient numbers are there.’

Then there’s the reality that the current end date of Nov. 21 for the House-passed CR doesn’t give lawmakers enough time to advance funding bills, which has been a primary objective for Thune and others. And, many don’t want to reopen the government just to see it close back down a few weeks later.

Lawmakers are mulling extending the current CR, either by amending it or with a new bill, which would give them enough time to finish spending bills and avoid a colossal, year-end omnibus spending bill. Some are eyeing January, while others would prefer an extension into December. A trio of spending bills, known as a minibus, could also be tied to the revamped extension.

Those talks are happening parallel to discussions on Obamacare, but neither side has so far made a move to fully construct an off-ramp out of the shutdown.

When asked if he believed that the shutdown could end this week, Sen. Mike Rounds, R-S.D., who has routinely engaged in bipartisan talks since the shutdown began, said, ‘I don’t know, I hope so.’

‘Bottom line is they can stop all this with one vote and get back into it and get back to work on a bipartisan basis,’ he said. ‘Again, that’s what we’re hoping.’

Both sides recognize that changing the subsidies, either through reforms or impacting the rates, will be difficult given that insurers already released rates and guidance over the weekend in line with the start of open enrollment.

Still, lawmakers are discussing a path forward on the subsidies. Sen. Lisa Murkowski, R-Alaska, who has been involved in bipartisan talks, said that her proposal for the subsidies would extend them for two years.

She noted that it would be, ‘Really, really hard to do any reforms right now,’ because the insurance rates had been released, and that her proposal was one of many in the mix.

Ultimately, it’ll come down to the right blend of ideas to build an off-ramp for the subsidies. Murkowski said that changing the income cap, which was eliminated when the subsidies were enhanced under former President Joe Biden, and changes to the low-cost premium contribution were just a couple ideas on the table.

‘There’s no highly brand-new thing that anybody’s really talking about,’ she said. ‘It’s just what’s the right concoction?’

But some Senate Democrats are frustrated that Trump has not gotten more involved and argue that unless he gives an explicit greenlight, any deal crafted on the Hill doesn’t matter.

Trump has agreed to meet with Schumer and House Minority Leader Hakeem Jeffries, D-N.Y., only after the government reopens. And over the weekend, he demanded that Senate Republicans nuke the 60-vote filibuster threshold, something that is unlikely to happen any time soon, if ever.

‘At no point since Oct. 1 has Donald Trump agreed to sit down with Democratic leaders,’ Sen. Andy Kim, D-N.J., said. ‘So, he can talk all he wants about the filibuster, but until he actually puts some skin in the game and sits down and talks to us, like, that is all meaningless to me. And I honestly, like, don’t care about him pontificating this stuff on social media. Like, if he’s got time to tweet, he’s got time to just come and talk to us.’