Senator Susan Collins and other members of Congress are pushing back against a White House proposal to create a commission of political appointees to review National Institutes of Health research grants. The plan, pushed by OMB Director Russell Vought, has sparked concerns about politicization of federal biomedical research funding.
US producer price index rose 5.4% year-over-year in August, exceeding forecasts of 5.3%, as Brent crude topped $107 per barrel amid Middle East tensions, increasing pressure on the Federal Reserve ahead of its September meeting.
Consumer prices rose 3.4% annually in August, unchanged from July, as the Iran war pushed gasoline and diesel prices higher. The persistent inflation increases pressure on the Federal Reserve to raise interest rates next week.
Federal Reserve Chair Kevin Warsh warned at the Jackson Hole conference that inflation remains too high and suggested the central bank may need to raise interest rates in coming months, despite potential political pressure from President Trump.
Federal Reserve Chair Kevin Warsh delivered his first Jackson Hole keynote, stating inflation is still too high and suggesting the central bank may need to raise interest rates in coming months. Markets reacted with volatility as Bitcoin fell below $80,000.
Consumer prices rose 0.1% month-over-month in July, bringing the annual inflation rate to 3.4% from 3.5% in June. The slowdown, driven by moderating energy costs despite the Iran war, reduces pressure on the Federal Reserve to raise interest rates.
The White House has revived its attempt to remove Federal Reserve Governor Lisa Cook over mortgage fraud allegations she denies, two months after the Supreme Court allowed her to retain her position while fighting the termination effort. A letter from White House aide Dan Scavino gives Cook three weeks to respond to the allegations.
The Federal Reserve kept its benchmark rate unchanged at 3.50%-3.75% on July 29, but three policymakers voted for a 25-basis-point hike—the first three-member dissent since 2016. Markets had priced in roughly 35% odds of a surprise hike.
Federal Reserve Chairman Kevin Warsh testified before Congress for the first time on Tuesday, pledging to make high inflation "a thing of the past" and calling for "regime change" at the central bank. He also vowed to "do my job" if challenged by President Trump, his most direct comment yet on maintaining Fed independence.
Congressional leaders announced a bipartisan agreement on the 21st Century ROAD to Housing Act, which includes provisions barring the Federal Reserve from issuing a central bank digital currency until 2030. The Senate previously voted 89-10 in favor of similar CBDC restrictions.
The Federal Reserve maintained interest rates unchanged in what is expected to be Jerome Powell's final FOMC meeting as chairman, with a split 8-4 vote creating uncertainty around future policy. Kevin Warsh cleared Senate Banking Committee approval to become the next Fed chair.
The Department of Justice closed its criminal investigation into Federal Reserve Chair Jerome Powell, passing the matter to the Fed's inspector general. The move clears a potential obstacle for Senate confirmation of crypto-friendly Kevin Warsh as Powell's replacement.
