- The FOMC voted unanimously to raise interest rates for the first time in three years, with Chair Kevin Warsh saying the move shows the Fed is serious about inflation above its 2% target for over five years.
- The Fed signaled it would likely raise rates again in December and twice in 2027; the 10-year Treasury yield rose above 5% and the S&P 500 closed 0.4% lower.
- White House economic adviser Kevin Hassett warned the Fed to stay out of elections, while President Trump demanded rates at 1% or less and threatened to stop trading with surplus countries.
- Treasury Secretary Scott Bessent is trying to pull interest rates down even as the Fed raises them, with the budget deficit likely to exceed $2tn this year.
Quotes
“Today's action starts to show that we're serious about this”
“if you want an independent Fed, then one thing the Fed does is it stays out of the way of elections”
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World”
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
“STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT”