Dow sinks 1,100 points after Fed holds off on hike
Source: The Hill News · Bias: Center
Summary
Stocks fell sharply Wednesday as the Federal Reserve held interest rates steady again despite continued inflation pressure. The Dow Jones Industrial Average closed down 1,153.18 points, or 2.19 percent, for its worst decline since April 2025 — when President Trump unveiled his sweeping “Liberation Day” tariffs. The S&P 500 dipped by 1.52 percent, falling to…
Dow sinks 1,100 points after Fed holds off on hike
Center
Stocks fell sharply Wednesday as the Federal Reserve held interest rates steady again despite continued inflation pressure. The Dow Jones Industrial Average closed down 1,153.18 points, or 2.19 percent, for its worst decline since April 2025 — when President Trump unveiled his sweeping “Liberation Day” tariffs. The S&P 500 dipped by 1.52 percent, falling to…
Today, the Federal Reserve held the federal funds rate steady at 3.50% to 3.75%, its fifth straight meeting without a move. For working families, this means no relief on mortgages, credit cards, or car loans. Although inflation briefly cooled in June, that temporary relief was driven by cheaper gas during a ceasefire that Trump derailed. Since then, gas prices have again crossed $4 per gallon and Trump’s new tariffs have increased the risk that inflation will accelerate. Despite mounting signs of labor market weakness, the Fed’s decision today signals they believe that the inflation Trump reignited is not done yet.Groundwork’s Chief Economist Breyon Williams shared his reaction:“The president’s reckless economic policies have done irreparable harm to working families’ budgets. Inflation remains elevated, with no immediate relief in sight for Americans. Even Trump’s hand-picked Fed chair, Wall Street sweetheart Kevin Warsh, knows the president’s actions are driving up prices for consumers and creating an influx of uncertainty for the economy. Today’s decision to hold rates steady is a reflection of a stalled labor market and persistent inflation.”To speak with Breyon or any of Groundwork’s experts about Warsh’s first meeting, reply to this email or reach out to press@groundworkcollaborative.org.BACKGROUNDInflation remains above the Federal Reserve's target, and the latest energy price shock has yet to show up in the data. Tomorrow's Personal Consumption Expenditures (PCE) report is expected to show prices increased 3.7% in June from a year ago, and largely reflects inflation before Trump dismantled his own ceasefire. Since then, gas prices have climbed back above $4 per gallon, creating renewed inflationary pressure that will not show up in tomorrow’s report. The San Francisco Fed warned this month that inflation remains "elevated and uncertain," citing renewed volatility in energy markets and accelerating core inflation. Trump is determined to keep prices high using tariffs. After the Supreme Court struck down most of Trump’s Section 232 tariffs, the administration fell back on temporary Section 122 tariffs, which expired last week. Instead of giving working families some relief, the administration immediately imposed new Section 301 tariffs to keep taxing everyday goods that consumers buy. And more tariffs are already on the horizon: Trump has signed an additional 50% tariff on a wide range of Canadian goods, scheduled to take effect next month, and a 100% tariff on patented drugs are planned in 2028. Businesses’ costs are still climbing. The latest wholesale inflation data suggest businesses are still contending with persistent cost pressures that have yet to fully reach consumers. Wholesale inflation rose 5.5% in June from a year ago. The Federal Reserve's July Beige Book found that contacts in 9 of the 12 Federal Reserve Districts reported price increases, with businesses repeatedly citing higher energy costs from the conflict in the Middle East and tariffs as key drivers. The Federal Reserve meets amid growing evidence that the labor market is losing momentum. The job market is frozen. Hiring has stalled and layoffs sit near historic lows, a labor market environment that leaves workers feeling stuck and job seekers feeling shut out. Recent job gains were sluggish, with employers adding just 57,000 jobs in June. Payroll gains in April and May were revised down by a combined 74,000 jobs. More Americans are leaving the workforce. A total of 720,000 people exited the labor force in June, pushing participation to its lowest level since March 2021. Workers are spending longer searching for jobs, and millions of Americans still cannot find full-time work. More than one in four unemployed Americans (27.3%) have been out of work for at least six months, up from 23.3% one year ago. About 4.7 million Americans are working part-time because they cannot find full-time jobs, pushing the broad U-6 unemployment rate, which captures workers who are unemployed, marginally attached, and part-time but want full-time jobs, to 7.9%. The economy is expected to grow at a slower pace, with AI investment propping up the headline numbers. The Atlanta Fed's GDPNow model estimates the economy grew at a 1.6% annualized rate in the second quarter, well below the 2.1% pace recorded in 2025. Much of the expected growth reflects continued investment in AI infrastructure and data centers rather than broad-based strength across the economy.
The Federal Reserve on Wednesday voted to keep rates unchanged.
The post JUST IN: Federal Reserve Leaves Rates Unchanged (Fed Chair Presser) appeared first on The Gateway Pundit.
The Federal Reserve voted Wednesday to hold its interest rate target steady following the second meeting under new Chairman Kevin Warsh, although three members of the Fed board dissented, preferring a rate hike. After a two-day meeting in Washington, the Fed’s monetary policy committee announced it would hold its rate target at a range of […]
Federal Reserve Chairman Kevin Warsh is holding a press conference on Wednesday afternoon after the central bank made its latest decision on interest rates. The Fed decided to keep its benchmark interest rates unchanged at 3.5%-3.75% for now. The decision was widely expected. FED HOLDS RATES STEADY, WITH THREE OFFICIALS DISSENTING “Economic activity is expanding […]
Acting Attorney General Todd Blanche stunned survivors of Jeffrey Epstein's abuse with shows of impatience during a meeting in which he snapped they should "get to the point," they said Wednesday. Dani Bensky, surrounded by fellow survivors of the notorious sex trafficker, revealed these chilling details in a conversation with MS NOW.Bensky contrasted Blanche's behavior to that of Sen. John Cornyn (R-TX), who listened to their pleas to keep President Donald Trump’s personal lawyer from getting a full Senate vote, she said. Then Bensky described their meeting with Blanche.“He was very condescending, it was a lot of talking in circles, a lot of arguing semantics," she said. "A lot of getting to the core points that we needed answers to.”Bensky left the meeting feeling unheard. “Basically we walked away with no answers and it felt like a no-win situation," she said. When reporters pressed for details of Blanche being "condescending," she provided them. “He actually said the words ‘get to the point’ to us," she said. "We’re survivors who have been waiting to meet with him for nine months, eight months.... He very much said, ‘Can you get to the point already? What are you getting at?'" - YouTube youtu.be
Saudi Defense Minister Prince Khalid bin Salman told Vice President Vance at the White House Wednesday that despite the joint U.S.-Saudi strike on pro-Iranian militias in Iraq, Saudi Arabia still favors de-escalation with Iran, a source familiar with the meeting told Axios.Why it matters: The source said the objective of the meeting was to deliver a message from Crown Prince Mohammed bin Salman (MBS) about the war with Iran and the situation in the region. Saudi Arabia is one of the key U.S. allies in the region. Despite tensions at several points over the last five months, the Saudis have managed to influence President Trump's Iran policy multiple times since the war began. Prince Khalid, the brother and close confidant of MBS, was supposed to visit Washington last week but delayed his trip because of the strikes in Iraq. Driving the news: On Tuesday, the Saudi military and U.S. Central Command (CENTCOM) conducted joint strikes against pro-Iranian militias in Iraq. CENTCOM said the strikes were in response to more than 30 drone attacks directed by the Islamic Revolutionary Guard Corps and carried out by militias against targets in Saudi Arabia over the previous 72 hours.Saudi Arabia's Defense Ministry later confirmed it participated in the strikes, saying they were coordinated with CENTCOM.Inside the room: A source familiar with the meeting said the Saudi defense minister told Vance that the attacks by the pro-Iranian Iraqi militias on Saudi infrastructure and energy facilities crossed a red line and the kingdom had to respond."The Crown Prince wanted to convey to Vance that the strikes in Iraq don't mean that Saudi Arabia is pro-escalation but rather that it is ready to defend itself if needed," the source said.The Saudi defense minister visited the White House a day after Israeli Prime Minister Benjamin Netanyahu met with Trump. An Israeli official said Netanyahu discussed the situation in Saudi Arabia "in the context of regional challenges.""Prince Khalid told Vance that Netanyahu is pushing for escalation with Iran while Saudi Arabia wants de-escalation because it is a more fruitful path," the source familiar with the meeting said.The vice president's office declined to comment.Catch up quick: Two weeks ago, Trump gave MBS his support for a highly unusual military action against the Iran-backed Houthis in Yemen, Axios reported.The Houthis retaliated by threatening to impose a naval blockade on Saudi ports and even conducting several attacks on Saudi ships in the Red Sea. The source added that Saudi Arabia had to deliver a strong response in Iraq in order to send a message to Iranian-backed Houthis in Yemen and deter them from carrying out similar attacks against the kingdom.The Saudi defense minister also told Vance on Wednesday that the kingdom can manage the situation with the Houthis and doesn't need the U.S. to get involved at this point. The Saudis are also negotiating with the Houthis, the source said.
The Senate panel chaired by Sen. Rand Paul (R-KY) will hold a vote on holding Dr. Anthony Fauci in contempt for refusing to testify about his actions during the COVID-19 pandemic, an escalation in the long-running battle between the two men. Paul said he scheduled the vote in the Senate Homeland Security and Governmental Affairs […]
