Hundreds of Palestinians in east Jerusalem set tires and garbage bins ablaze on Tuesday and hurled rocks at Israeli riot police, who responded with rubber bullets and tear gas. The heaviest clashes in months broke out as an American envoy abruptly canceled a visit, deepening a U.S.-Israeli diplomatic feud.

The Federal Reserve is expected to hold interest rates near zero on Tuesday and renew its pledge to keep rates very low for a long time, but it could note a brightening economic picture and hint at being closer to dropping the vow.

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