Hello from CNN, I'm Joe Beck, with the five things you need to know for Wednesday, May 7th.

As concerns of an all-out war grow, Pakistan's Prime Minister has authorized his military to respond to Indian airstrikes.

Shabaz Sharif's office says he's given the green light for, quote, corresponding actions

to avenge the loss of innocent Pakistani lives.

India struck what it described as terrorist infrastructure inside Pakistan and Pakistan administered Kashmir overnight.

CNN's Nick Robertson is in Islamabad.

What Pakistan did last night was take down, they say, five Indian fighter jets, at least

wreckage of what appears to be one plane, falling about 40 miles over the border on the Indian

side of Kashmir. And I think it's worth just stating here that the leader

of a militant group in Pakistan, Jashi Muhammad, said that 10 of his family members, including

children, were killed in the strike. New Delhi says its attack is in response to last month's

shooting of 26 civilians in India administered

Kashmir, which it accuses Islamabad of being involved in. Pakistan has denied that.

The disputed region of Kashmir has been a flashpoint between the two nuclear-armed rivals

for decades.

Its interest rates decision day for the Federal Reserve, and they're in a bit of a bind.

If they lower rates to guard against the economic downturn fueled by President Donald Trump's

tariffs, it could possibly push up inflation.

But raising rates to keep inflation down could lead to more people being out of a job.

Trump, for his part, has been clear what he wants Fed Chair Jerome Powell to do, as he explained

to NBC.

He should lower them.

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