The Federal Reserve lifted its benchmark interest rate to 3.75% to 4.00%, its first hike since 2023, citing elevated inflation and geopolitical uncertainty. The move comes as fuel prices surge during the U.S.-Iran war and despite President Donald Trump’s demands for lower rates.
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The Federal Reserve is expected to raise its benchmark interest rate by a quarter percentage point Wednesday, its first increase in more than three years. Inflation remains above target as higher energy prices, including record diesel costs, pressure households and businesses.
The Congressional Budget Office estimated the Iran war has cost the U.S. about $38 billion and could add $2 billion to $3 billion per month if it continues. The report said the conflict is raising inflation and will leave missile-defense stockpiles reduced for years.
Census Bureau data show median U.S. household income reached $87,460 in 2025 while the official poverty rate fell to 10.2%. Analysts warned that cuts to SNAP, Medicaid and health coverage subsidies could affect future poverty and insurance figures.
U.S. Treasury yields have climbed to around 5% as oil prices surge above $108 a barrel amid escalating Middle East attacks. The rise is feeding inflation concerns and increasing expectations of further central bank rate hikes.
The full new UK state pension is expected to rise by 3.9% next April, taking it above £13,000 a year. The increase has revived debate over the triple lock’s cost and whether pensioners relying only on the state pension will face tax.
Kennedy Center leaders have warned the institution may be unable to meet payroll within weeks and could close its main building as soon as Tuesday. The financial warning comes amid litigation over efforts to add President Donald Trump’s name to the building.
Commerce Secretary Howard Lutnick said President Donald Trump’s proposed $5,000 dividend for U.S. adults would not come from tax money. Other administration officials have pointed to tariffs or congressional action as possible funding sources for a plan estimated to cost around $1 trillion or more.