Good evening. Here’s the latest at the end of Wednesday.
The Fed raises interest rates to fight against inflationThe Federal Reserve raised interest rates today for the first time in more than three years. The move, which was supported by all 12 of the central bank’s voting members, is intended to contain inflation. “The plain fact is that inflation is too high and has been for too long,” Kevin Warsh, the Fed chairman, said. The decision puts Warsh at odds with President Trump, who picked him for the job earlier this year. After the central bank announced it would raise its benchmark rate to a range of 3.75 to 4 percent, the president called on the Fed to reverse course and cut rates to 1 percent: “LOWER THE INTEREST RATES,” he posted on social media. That seems unlikely anytime soon. A majority of Fed officials indicated today that they expected to raise rates at least once more this year. What it means for you: When the Fed raises rates, it makes short-term borrowing more expensive. Interest rates on credit card debt, personal loans and small-business loans will very likely jump up within a few billing cycles because they are usually pegged to the so-called prime rate, which tracks the Fed’s actions. Other loans, like mortgages, are not directly tied to the central bank's moves, though they are influenced by them. The Fed’s goal here is to create a domino effect, with less borrowing leading to less spending and more pressure on businesses to maintain or lower prices.
The Saudis are scrambling to restore their oil supplySaudi Arabia has been working to reroute millions of barrels of oil after a critical pipeline was damaged in an attack. Officials there also said today that they had come under attack from the Iran-backed Houthi militia, which has gained a chokehold on a key Saudi export route. Now, the world’s biggest oil exporter is running out of options. An extended disruption to its oil supply could cause a severe global energy crisis. In other Middle East news:
E.U. and Canada move closer, as their ties to the U.S. weakenWhen the European Union invited Canada today to work toward becoming its first “associate member,” the announcement was met with a standing ovation from European lawmakers. The title is meant to underscore the nation’s growing closeness to the 27-country bloc, which comes as relations with the U.S., traditionally an ally of the E.U. and Canada, have deteriorated. For more: My colleagues in Canada and Europe explain the obstacles ahead.
Senate considers new limits on the ‘Wild West’ of college sportsIn a strong bipartisan vote, the Senate agreed today to open debate on a bill that would limit the ability of college athletes to jump from school to school, establish new rules for pay and impose other standards across collegiate sports. Its backers, including Senator Ted Cruz of Texas, say it is needed to restore stability in a chaotic environment where universities engage in bidding wars for top athletes. Critics, including labor groups, argue the measure would limit the ability of college athletes to be financially rewarded for their work. For more: Extensive reporting by The Athletic found that top college football teams spend around $50 million per year on players. More top newsArtificial Intelligence
Other Big Stories
This question comes from a recent edition of the newsletter. Click an answer to see if you’re right. (The link is free.) Over the next couple of weeks, officials in some cities will be asking building owners to dim or turn off lights. What’s the reason?
Can Netflix turn a revered Polish novel into a hit show?In Poland, Boleslaw Prus’s epic 19th-century novel, “The Doll,” is thought of as a true masterpiece. Almost everywhere else, it’s hardly thought of at all. That could change today, with the release of a six-part adaptation on Netflix. The series is in Polish, but in the age of subtitles, it has the potential to reach an international audience looking for the next “Bridgerton.” The director told us he had approached it the way “Americans approach the myth of the Batman,” by adjusting and reinterpreting the story for an audience that’s far distant from the Polish aristocracy in the age of the Russian Empire.
Remembering Annie DillardAnnie Dillard was still in her 20s when she became one of the major voices in American literature. She journeyed into Virginia’s Blue Ridge Mountains and came out with a Pulitzer Prize-winning book on the wonders and horrors of creation, “Pilgrim at Tinker Creek.” But she didn’t stop there: Dillard delivered ruminations on life and nature, good and evil, a best-selling biography and a theory of literature over the next few decades. Dillard died yesterday at 81. Read about her life.
Dinner table topics
Bake these little harvest muffins, which make for a great grab-and-go snack. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
