The Fed meeting, Starbucks earnings, Amazon layoffs and more in Morning Squawk

Good morning! As the trading day kicks off, here are the essential updates shaping the financial landscape today. Today marks a significant moment for investors as the Federal Reserve prepares to announce its interest rate policy at 2 p.m. ET. Following the announcement, Chair Jerome Powell will hold a press conference at 2:30 p.m. ET, which is highly anticipated by market watchers. In corporate news, Starbucks has seen a remarkable boost, with shares rising over 7% after the coffee giant delivered better-than-expected revenue for its first fiscal quarter. This marks an encouraging turnaround for the company, which reported an increase in customer traffic for the first time in two years. However, Starbucks did fall short of earnings estimates. CEO Brian Niccol highlighted that these results indicate the effectiveness of their business turnaround strategy, with same-store sales climbing for a second consecutive quarter, thanks in part to popular holiday offerings and the viral "Bearista" cup. Later today, attention will also be on major players like Meta, Microsoft, and Tesla as they prepare to release their earnings after the market closes. Additionally, IBM and ServiceNow will present their quarterly financial updates this afternoon. In political news, following a tragic incident involving federal agents in Minneapolis, House Democrats have announced plans to initiate impeachment proceedings against Homeland Security Secretary Kristi Noem unless former President Trump takes action against her. The Democrats are also threatening to cut funding for the Department of Homeland Security, potentially leading the government towards a partial shutdown this Saturday. Amid these tensions, Trump has called for a de-escalation and has demanded a thorough investigation into the fatal shooting of Alex Pretti by federal agents. Amazon has announced a significant workforce reduction, laying off approximately 16,000 corporate employees as part of their ongoing efforts to streamline operations. This marks the second wave of job cuts since October. In a related move, Amazon is also shuttering its Fresh supermarket and Go convenience store brands, converting some locations into Whole Foods stores. Grocery chief Jason Buechel informed staff that the company must make strategic decisions to enhance its market position. Lastly, in a major operational shift, Southwest Airlines has officially ended its open-seating policy after more than 50 years, responding to customer feedback. The airline will now offer more spacious, premium seating options at the front of its planes, which will be a key topic during its upcoming earnings call. Stay tuned for more updates as the market unfolds today!