Thursday, September 17th

What happened

The Federal Reserve unanimously raised its benchmark federal funds rate by 0.25 percentage points, setting a target range of 3.75% to 4.0%. It was the Fed’s first rate increase since July 2023. Fed Chair Kevin Warsh said inflation remains too high after years above target, while the economy can handle tighter credit. Renewed price pressure from the Iran war and higher energy costs helped drive the decision. President Donald Trump demanded rates of 1% or less, saying higher borrowing costs hurt investment. Warsh said Fed independence works both ways. Treasury yields rose immediately, raising pressure on consumer loans. Fed projections show another hike may come this year.

What happened

Macklemore pledged his full $1 million in net tour earnings to six groups aiding Palestinians after Ed Sheeran’s Loop Tour dropped him as an opener. The cut followed backlash over Macklemore’s pro-Palestinian comments at two New Jersey shows, and Sheeran’s other support acts later quit in solidarity. Macklemore said New England Patriots owner Robert Kraft blocked him from Gillette Stadium and pushed other venues; Sheeran said the promoter acted after venues threatened to pull shows. Kraft said Gillette Stadium would not host hate speech, citing what he called antisemitic rhetoric and imagery. He also said Sheeran asked him to commit $2 million in regional aid. The tour is still expected to continue, but new openers remain unclear.

What happened

European Commission President Ursula von der Leyen proposed creating a path for Canada to become the European Union’s first associate member, a status not now in EU treaties. The pitch would move Canada and the EU beyond their CETA trade deal into an Alliance for the Future on manufacturing, technology, defense, energy and economic security. Von der Leyen said the plan reflects shared democratic values and is not aimed at anyone. Canada has sought closer European ties as its U.S. trade fight worsens, with about 70% of its exports going south. Prime Minister Mark Carney welcomed the idea. Trump called it laughable and warned of heavy tariffs. The legal path remains undefined.