Human Times

North American Edition

16th February 2026

THE HOT STORY

IRS reassigns staff to taxpayer services amid filing season workforce strain

The IRS has temporarily reassigned employees from IT and human capital offices to taxpayer services roles during the current filing season, as the agency grapples with staffing cuts. Affected staff have been placed on 120-day involuntary details as customer service representatives or tax examiners, with training beginning in late February. The move follows warnings from the Treasury Inspector General that the IRS has lost about 19% of its workforce since October 2025, including significant reductions in IT and filing-related staff, potentially jeopardizing system upgrades and modernization efforts. While the agency says the reassignments are intended to support taxpayers during its busiest period, some employees have raised concerns that diverting IT personnel could further delay technology projects and increase processing backlogs.

EdScoop

REMUNERATION

Citigroup raises chief executive Jane Fraser’s pay to record $42m

Citigroup has increased Jane Fraser’s pay by nearly a quarter to $42m, in a vote of confidence for the chief executive leading a high-stakes revamp of the Wall Street bank. Her compensation comprised a $1.5m base salary and a $40.5m bonus, in addition to a previously awarded $25m retention package vesting over five years. The pay rise follows a 66% surge in Citi’s share price during 2025 as the bank advanced an overhaul expected to eliminate 20,000 jobs and complete more than 80% of its transformation plan. Citi said the package reflects Fraser’s role in strengthening performance and positioning the bank for growth, with return on tangible common equity rising to 7.7%, though still short of its 10% target.

Financial Times

Reuters

Wall Street Journal

TAX

Mayor Mamdani proposes 2% tax increase on wealthy New Yorkers

New York City Mayor Zohran Mamdani has proposed a 2% tax increase for residents earning over $1m annually, alongside a rise in the corporate tax rate. During a budget hearing, he noted that the city's budget gap has narrowed from $12bn to $7bn, saying: "I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity." Mamdani's plan aims to address nearly half of the city's budget deficit. However, any tax increases would require approval from Democratic Governor Kathy Hochul, who has expressed opposition to tax hikes, and emphasized the need for transformative investments without increasing taxes.

Reuters

Wall Street Journal

ECONOMY

U.S. inflation cooled to 2.4% in January, boosting rate cut hopes

U.S. consumer prices rose 2.4% year-on-year in January, below expectations and down from the prior month, marking the lowest annual inflation rate since May 2025, according to Labor Department data. Core inflation, which excludes food and energy, increased 2.5% annually, in line with forecasts, while monthly headline CPI rose 0.2%. Shelter costs increased 0.2% on the month, energy prices fell 1.5%, and used vehicle prices dropped 1.8%, helping ease overall price pressures. The softer-than-expected reading lifted market expectations for a Federal Reserve rate cut in June, as inflation continues to trend lower despite remaining above the Fed’s 2% target.

CORPORATE

McKinsey hands over control of controversial in-house asset manager

McKinsey has agreed to transfer control of $20bn in alternative assets from its investment arm, MIO Partners, to Neuberger Berman following a strategic review. The move follows longstanding scrutiny of MIO over potential conflicts of interest with McKinsey’s consulting work, including a 2021 $18m SEC fine for inadequate internal controls. Under the deal, MIO’s 280 employees and its advisory business serving McKinsey partners will join Neuberger. MIO manages $26bn in total assets, though $6bn in passive investments are excluded from the transaction. The unit primarily runs multi-strategy and macro investment approaches and invests significantly in externally managed funds. The agreement, subject to client consent and regulatory approvals, is expected to close this year.

IREI

Financial Times

TECHNOLOGY

OpenAI alleges DeepSeek model copying

OpenAI has told U.S. lawmakers that Chinese AI startup DeepSeek is trying to replicate leading U.S. AI models and use them for its own training, according to a memo seen by Reuters. OpenAI said DeepSeek is using “distillation” and alleged attempts to bypass access controls, including “obfuscated third-party routers” that hide request origins. The memo claimed DeepSeek staff wrote code to programmatically obtain outputs for distillation. OpenAI also argued some Chinese models are “actively cutting corners” on safe training and said it removes users suspected of distillation.

Reuters

INTERNATIONAL

Italian prosecutors place Delivery Hero’s Glovo unit under judicial control

Italian prosecutors have placed Delivery Hero’s Italian food-delivery business under judicial control as part of a criminal investigation into alleged labor exploitation. A court-appointed administrator will oversee Foodinho, the Milan-based operator of Glovo in Italy, in a move aimed at halting what authorities described as an urgent and ongoing situation. Prosecutors allege that around 40,000 riders were paid compensation that was disproportionate to the work performed and in breach of collective labor rules, with many earning below the poverty threshold despite long hours. Delivery Hero said it is cooperating with judicial authorities.

Bloomberg

Reuters

Mexican inflation accelerates in January following new taxes

Inflation in Mexico sped up in January as the new year saw new taxes launched by the government on products deemed unhealthy, including soda, cigarettes and video games, alongside an increased minimum wage and new tariffs on China and other mainly Asian countries that the Central American nation does not have a free trade agreement with. "We believe the effects of the tariffs that took effect at the beginning of the year will gradually impact merchandise inflation throughout 2026. However, these upward pressures will be partially offset by currency appreciation, low producer price inflation (1.5% year-on-year in January), and modest economic growth," the Bank of Mexico said.

U.S. News

China charges former AstraZeneca executive Leon Wang

China has officially charged AstraZeneca's former regional head, Leon Wang, with illegal trading, unlawful collection of personal information and medical insurance fraud, alongside another former employee. Wang, who has been in detention since 2024, was the drugmaker’s most senior executive in China for a decade until his arrest.

Caixin Global

Financial Times

Reuters

OTHER

NY’s top judge backs family court reforms

New York Court of Appeals Chief Judge Rowan D. Wilson has said he wants to expand resources for families in a bid to ultimately “shrink the population needing family court.” Wilson, who oversees the state’s entire court system, said poverty and issues such as mental illness, which the courts struggle to deal with, drive many of the cases that end up in family court.

Bloomberg Law

New York Times

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