- The FOMC voted unanimously to lift the federal funds rate to 3.75%-4% from 3.5%-3.75%, the first rate move in any direction since December 2025 and the first hike since July 2023.
- Fed Chair Kevin Warsh said inflation has run above target for more than five years and called the decision sober and responsible, while the majority of policymakers projected another hike to 4%-4.25% before year-end.
- President Donald Trump publicly demanded rates be cut to 1% or less, underscoring political friction with an independent Fed ahead of November midterms where affordability is a top voter concern.
- JPMorgan, KeyCorp and BNY raised their prime lending rate to 7% from 6.75%, lifting costs on credit cards and personal loans, while the average 30-year fixed mortgage stands at 6.76%.
- Global oil prices have surged since the start of the US-Israel war with Iran, pushing diesel to an all-time high and petrol above $4 a gallon on average, feeding the inflation the Fed is trying to contain.
Quotes
“inflation is too high and has been for too long”
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
“For more than five years, inflation has been running above target”
“part of the independence of the Federal Reserve is we stay in our lane”