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Bank of Israel Makes Surprise Rate Cut as Inflation Moderates and Shekel Gains

The Bank of Israel building is seen in Jerusalem, June 16, 2020. Photo: REUTERS/Ronen Zvulun

The Bank of Israel unexpectedly cut its interest rate by 25 basis points on Monday, a second successive cut after lowering it in November for the first time in nearly two years, citing an improving inflation environment after the Gaza ceasefire.

The benchmark short-term rate was reduced to 4.00% from 4.25%.

Bank of Israel Governor Amir Yaron said that despite the two cuts in a row, policymakers would remain cautious and mindful of economic and inflation developments and that the monetary committee’s base scenario was for the key rate to slip to 3.5% this year – two more 25 bps reductions.

He told a news conference that three factors contributed to the decision to lower rates again – easing inflation, a shekel that has reached a four-year peak versus the dollar and declining supply constraints.

SIGNS OF FEWER LABOR MARKET CONSTRAINTS

“Since the ceasefire [with terrorist group Hamas], there has been a change in the inflation environment,” Yaron said.

Supply constraints had stoked inflation during the two-year war in Gaza that ended with a US-brokered ceasefire in October 2025 but the annual inflation rate eased to 2.4% in November, within the government’s 1%-3% target range.

“While the labor market is tight, there are signs of moderation in supply constraints in the labor market,” Yaron said.

He also pointed to declining inflation expectations in the bond market and the stronger shekel, in which the currency’s appreciation supports lower inflation levels.

“These three factors together contributed to the decision to [cut] now rather than a bit later,” Yaron said, also noting that Israel‘s risk premium has moved back to near its pre-war level.

The bank‘s forecasters projected that there would be an increase in inflation when December’s data is released by the statistics office on Jan. 15, and it would then decline to around the midpoint of the policy target range.

NEXT DECISION DUE FEB. 23

Despite easing price pressures and a four-year high for the shekel against the dollar, nine of the 10 economists polled by Reuters had forecast the central bank would hold rates this month. One economist expected a quarter-point reduction.

The next decision is slated for Feb. 23, after both the December and January inflation figures are published.

The shekel was up 0.8% against the dollar at a 3.157 rate, its strongest since December 2021. Tel Aviv share indexes rose as much as 1.6%.

In updated forecasts, the central bank projected economic growth of 5.2% for this year after a 2.8% pace in 2025 that was held back by the war, and an inflation rate of 1.7% in the coming year.

Yaron also urged lawmakers to approve the 2026 budget. While it has received cabinet approval, it was not yet clear whether it will pass parliament due to political infighting. Failure to pass the budget by the end of March would trigger a new election.

Still, Yaron said the planned deficit target of 3.9% of GDP was too high.

“Complying with this deficit target depends on … there not being geopolitical developments that will require an additional increase in defense expenditures and that the assumptions in the revenue path will in fact materialize,” he said.

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Mamdani to attend Passover Seder as he navigates ties with Jewish groups amid rising antisemitism

New York City Mayor Zohran Mamdani is set to attend a Passover Seder on Monday night at the City Winery in Manhattan, stepping into a decades-old cultural tradition that doubles as a symbolic test of his relationship with the city’s Jewish community.

Mamdani is slated to appear alongside a liberal rabbi, an Israeli musician and an observant comedian at the annual Downtown Seder hosted by nightlife impresario and entrepreneur Michael Dorf. All net proceeds from the event will be donated to Seeds of Peace, a New York-based nonprofit founded in 1993 that helps young people from conflict regions build leadership skills and engage in dialogue.

Founded in 1991 and held at the East Village’s Knitting Factory and later at the Museum of Jewish Heritage, the Downtown Seder brings together artists, activists and public figures for a contemporary retelling of the Exodus story. Dorf, who is Jewish and launched City Winery in 2008, has described the gathering as a “supplement” to traditional seders. Passover begins Wednesday evening at sundown.

“The Seder is about asking urgent questions — about freedom, responsibility, and how we care for one another,” Dorf said in a statement. “Each year, we bring together voices who challenge, inspire, and reflect the world as it is — and as it could be.”

Featured guests this year include former CNN anchor Don Lemon, Israeli musician David Broza, and comedian Modi Rosenfeld. Former Mayor Eric Adams was the featured guest at the Seder in 2023.

A City Hall spokesperson said Mamdani will also host a private Passover dinner with city workers.

Mamdani’s participation at the Seder on Monday comes at a delicate political moment. A vocal critic of Israel who supports the boycott movement and has declined to recognize Israel specifically as a Jewish state, Mamdani has faced backlash from Zionist Jewish organizations, particularly after revoking executive orders tied to antisemitism and campus protests on his first day in office and his recent refusal to back legislation aimed at curbing disruptive protests outside synagogues and schools.

Reflecting his outreach efforts since taking office, his appearance at the Seder signals an ongoing effort to engage Jewish audiences drawn to themes of justice and coexistence and who are willing to be part of the conversation.

The event that Mamdani will speak at will also feature remarks from Rabbi Amichai Lau-Lavie, a rabbi and human rights activist, who will appear via video from Israel, according to the organizers.

Last week, Mamdani helped load cars with Passover food for Orthodox families at the annual Chasdei Lev distribution event in Brooklyn. He also met with Orthodox businessman Dov Bleich at his office, who showed him a Haggadah dating to the Civil War era in New York.

In his interview with the Forward last April, Mamdani framed the Exodus story as a call for collective liberation struggles. He invoked the biblical story of Moses confronting Pharaoh as a metaphor for present political challenges. “This moment with so many Pharaohs around us — whether they be Donald Trump, ICE or this troubling rise of antisemitism — we must take a lesson from those words of the necessity of not only having our lips not tremble or falter, but that the power in doing this comes in a shared belief in the possible,” Mamdani said. As a candidate,  Mamdani attended a Seder hosted by Jews for Racial and Economic Justice.

Jewish politicians mark Passover amid rising antisemitism

Other politicians have also sought to mark Passover in ways that resonate with Jews grappling with rising antisemitism.

New York City Council Speaker Julie Menin co-hosted an interfaith Seder with the Jewish Community Relations Council on Thursday at Tsion Cafe, an Ethiopian Jewish restaurant in Harlem that closed earlier this year, after the owner faced ongoing harassment and vandalism since the Oct. 7 Hamas attack on Israel. “The story of Passover is a story of hope, perseverance, grit and determination for the Jewish community,” Menin said in her remarks. She added that it is symbolic that this year all the major religious holidays — Ramadan, Lent, Easter and Passover — have converged around the same time. “This is what our city needs more of — focused on unity and inclusion,” she said.

Some see Menin’s role as the Council’s first Jewish speaker as a counterweight to Mamdani on Jewish communal issues. On Thursday, the Council passed two bills that direct the NYPD to craft a plan within 45 days for managing protests around houses of worship and schools.

Illinois Gov. JB Pritzker hosted a Seder with Jewish leaders last week at his official residence. Last year, Pritzker, among a handful of Jewish politicians in leadership roles offering the Democratic Party a path forward ahead of the midterm elections, invoked his family’s history and his role in building the Illinois Holocaust Museum & Education Center to criticize President Donald Trump’s policies, comparing them to authoritarian tactics.

Pennsylvania Gov. Josh Shapiro is set to hold a family Seder at his official residence and will mark the first anniversary of the arson attack on the first night of Passover last year by an intruder, who said he wanted to beat the governor with a sledgehammer over what he claimed was a lack of empathy toward Palestinians. Shapiro has since leaned into his Jewish identity and has spoken out on bipartisan platforms about rising hate-fueled violence.

The post Mamdani to attend Passover Seder as he navigates ties with Jewish groups amid rising antisemitism appeared first on The Forward.

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IDF Soldier from Connecticut Killed in Southern Lebanon Combat

Sgt. Moshe Yitzhak Hacohen Katz. Photo: courtesy.

i24 NewsThe Israel Defense Forces announced on Sunday morning the death of Sgt. Moshe Yitzhak Hacohen Katz, 22, originally from New Haven, Connecticut, who was killed during combat operations in southern Lebanon on Saturday.

According to the military, Katz was killed in a rocket attack targeting Israeli forces operating during efforts to expand a security zone in southern Lebanon. The IDF said the strike occurred overnight between Friday and Saturday, during a large-scale barrage aimed at units deployed in the area.

An initial military investigation found that one rocket directly hit an infantry unit from the 890th Battalion of the Paratroopers Brigade, killing Katz instantly. Three additional soldiers were wounded and are listed in moderate condition.

The IDF said the announcement of Katz’s death was delayed to ensure that all family members, including those in the United States, were properly notified.

The army also said that recent attacks have largely focused on the four IDF divisions operating in Lebanon. In the past 24 hours alone, approximately 250 rockets were launched toward Israeli positions, with 23 crossing into Israeli territory, according to military figures.

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AI-Generated Antisemitic Rabbi Racks Up Millions of Followers with Questionable Financial Advice

i24 NewsAn AI-generated character known as Rabbi Goldman has attracted millions of followers online by combining old antisemitic tropes with digital-age conspiracy theories. The avatar, presented as a caricature of a New York rabbi, plays off stereotypes of Jewish power and wealth while dispensing unsolicited “financial advice” and conspiracy-laden commentary about global elites.

In his videos, Rabbi Goldman claims that Jews have “known every secret for thousands of years,” weaving age-old prejudice into modern misinformation. Among his assertions: that the moon landing was faked, the US government will soon exert total control over its citizens, and billionaires stage yacht sinkings for insurance fraud—all allegedly foreknown by “the Jews.”

Before being removed on Sunday night, his Instagram account had racked up over 1.5 million followers. Yet the same page remains active on Facebook, which shares an owner with Instagram, with roughly 180,000 followers and thousands of interactions per post. The comments reveal an audience that is genuinely engaged with, and emboldened by, his vitriolic rhetoric.

Rabbi Goldman’s videos follow a simple formula designed to thrive in algorithm-driven ecosystems. They begin with a cryptic slogan implying secret knowledge or hidden wealth — invoking Jews as the keepers of these secrets — to draw viewers in and extend watch time, thus being featured on more people’s feeds. What follows is a cascade of AI-generated, factually dubious monologues, all culminating in a pitch: he can show you how to acquire the same “Jewish wisdom.”

That pitch leads to his website, where a manual titled How to Make and Invest Money sells for $9, and he claims it has been purchased by over 4,000 people. The real product, however, carries a fuller title — How to Make and Invest Money Like the Jews. The 62-page PDF amounts to generic, AI-spun financial advice labeled as “the Jewish method,” occasionally interspersed with random references to the Talmud. Just like the videos, it references how Jews have managed to be successful for thousands of years but offers little backup as to how that can translate to a real-world scenario.

Most of it plays off the stereotype of Jews being financially astute. But some lines, such as “Jews do not day trade… We buy the market — the entire market — and we hold it indefinitely,” remove the mask entirely.

Whether we like it or not, antisemitism thrives online—and platforms’ recent loosening of content restrictions under the banner of “free speech” has only amplified it. Social media has become an ideal environment for grifters to blend prejudice with profit. And that is, to their credit, what the creators of Rabbi Goldman have done.

They have clearly borrowed from the “manosphere” playbook—a cluster of influencers promoting hyper-masculine, materialistic lifestyles infused with misogyny and antisemitism. Like Andrew Tate and similar figures, Rabbi Goldman appeals to disaffected young men who feel alienated by the economy and society in which they live, eager to locate a scapegoat.

In Goldman’s case, the scapegoats are the elites and billionaires. But the framing of the Jews alongside the elites has, by proxy, made them the scapegoat too. By merging coded hatred with generic Instagram-style self-help language, the character transforms antisemitism into a marketable aesthetic.

So essentially, the creator of Rabbi Goldman has found a niche in an emerging market, playing off of antisemitism to sell cheaply produced slop to teenagers. Which is both entrepreneurial and morally awful. But the issue is that social media has bred the ground for this by rewarding shock content and letting antisemitism often go untouched. Even when they deleted his Instagram account, dozens of copycats popped up, including an absurdly ironic German-language version that uses the likeness of British politician Jeremy Corbyn.

And this is what happens when social media companies are reactive rather than proactive. They were chasing shadows after the account became so big. Instead, they need to cut it out at its source, be tougher on antisemitism, and be more vigilant with AI content.

And for social media users, it is hard to tell what’s real and what isn’t anymore. Just try not to get financial advice from an AI rabbi who thinks the moon landing was fake.

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