Are the fleshly Jews still God's people ? No, for three days before Jesus was executed on a stake at the demands of the Jewish religious leaders, he said this about them while in the temple area: "The scribes and the Pharisees have seated themselves in the seat of Moses.......All the works they do, they do to be seen by men, for they broaden the scripture-containing cases that they wear as safeguards and lengthen the fringes of their garments. They like the most prominent place at evening meals and the front seats in the synagogues and the greetings in the marketplaces and to be called Rabbi by men."(Matt 23:2, 5-7)
Jesus now "rakes them over the coals", scathingly denouncing them by saying to the scribes and Pharisees: "Serpents, offspring of vipers, how will you flee from the judgment of Ge·henʹna (or everlasting destruction, same as "the lake of fire", Rev 20:14, 15) ? For this reason, I am sending to you prophets and wise men and public instructors. Some of them you will kill and execute on stakes, and some of them you will scourge in your synagogues and persecute from city to city, so that there may come upon you (or Judaism as part of the global false religious empire called Babylon the Great, Rev 17:5) all the righteous blood spilled on earth (that Babylon the Great has brought, being massively blood guilty, Rev 18:24), from the blood of righteous Abel to the blood of Zech·a·riʹah son of Bar·a·chiʹah, whom you murdered (or having the same murderous attitude as the Jews did during the reign of King Jehoash [898 -858 B.C.E.], who authorized the murder of Zechariah, 2 Chron 24:17-22) between the sanctuary and the altar."(Matt 23:33-35)
Now Jesus comes to the climax, telling the entire nation of fleshly Israel: "Jerusalem, Jerusalem (representing the nation), the killer of the prophets and stoner of those sent to her—how often I wanted to gather your children together the way a hen gathers her chicks under her wings ! But you did not want it. Look ! Your house (or the temple in Jerusalem) is abandoned to you. For I say to you, you will by no means see me from now until you say, ‘Blessed is the one who comes in Jehovah’s name !’”(Matt 23:37-39; Note: Jesus quoted from Ps 118:26, using God's name of Jehovah)
So, the nation of fleshly Israel was rejected, but a "remnant" was saved, for some Jews exercised faith in Jesus as the promised Messiah, while the rest of the nation of fleshly Israel did not.(Rom 9:27; see also Isa 10:22, 23) The apostle Paul wrote: "For I bear them (the fleshly Jews) witness that they have a zeal for God, but not according to accurate knowledge. For because of not knowing the righteousness of God but seeking to establish their own, they did not subject themselves to the righteousness of God."(Rom 10:2, 3)
The nation of fleshly Israel failed to "become my (or Jehovah God's) special property out of all peoples", failing to "become to me a kingdom of priests and a holy nation".(Ex 19:5, 6) As a result, Jehovah brought into the "fold" (John 10:16a) of 144,000 imperfect people (Rev 14:1-3) who are chosen for "a kingdom of priests and a holy nation", who are "being counted worthy of the Kingdom of God" (2 Thess 1:5), Gentiles or "people of the nations".(Rom 11:11)
When Jehovah began accepting Gentiles into the "fold" of 144,000 chosen ones for a heavenly government called God's Kingdom with Cornelius and his family being baptized in 36 C.E. (Acts 10), the apostle Paul said that "at that time you (or Gentiles) were without Christ, alienated from the state of Israel, strangers to the covenants of the promise; you had no hope and were without God in the world. But now in union with Christ Jesus, you who were once far off have come to be near by the blood of the Christ. For he is our peace, the one who made the two groups (Jew and Gentile) one and destroyed the (symbolic) wall in between that fenced them off. By means of his flesh he abolished the enmity (or hatred), the Law of commandments consisting in decrees (or Mosaic Law covenant), in order to make the two groups in union with himself into one new man and to make peace, and to reconcile fully both peoples in one body to God through the torture stake, because he had killed off the enmity by means of himself."(Eph 2:12-16)
These "two groups in union with himself " became "the Israel of God" (Gal 6:16), a new nation that would produce the "fruits" or righteous behavior of the Kingdom.(Matt 21:43; see also Matt 16:27)