Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut
WASHINGTON (AP) — President Donald Trump is blasting Federal Reserve governors after the board raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation. The central bank also signaled another rate hike could occur later this year. Trump called the governors politicians and said they're trying to hurt him politically. The quarter-point increase lifts the Fed’s key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards. The move comes as Americans are already struggling with high costs for groceries, gas and housing. Affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.
Fed rate hike likely means more expensive credit cards and mortgages, but savers may rejoice
WASHINGTON (AP) — The Federal Reserve just raised the cost of borrowing money — bad news for borrowers, good news for savers. The Fed increased its benchmark interest rate Wednesday by a quarter-point, the first rate hike since the summer of 2023. The move will likely make it even costlier to borrow for homes, autos and other purchases. But if you’ve been socking money away, you’ll probably earn a bit more interest on your savings.
House approves sweeping Russia sanctions bill, sending it to Trump
WASHINGTON (AP) — The House has passed a broad package of sanctions targeting Russian officials and key pillars of its economy as lawmakers look to deprive President Vladimir Putin of the financial resources needed to wage the war against Ukraine. The bill is named after the late Sen. Lindsey Graham of South Carolina, who spent more than a year working on it. The bill passed by a vote of 262-159. It represents the most ambitious effort to support Ukraine since President Donald Trump returned to the White House. It now goes to Trump's desk to be signed into law.
Fencing goes up around the main Kennedy Center building after Trump-aligned board votes to close it
WASHINGTON (AP) — Fencing has gone up around the main Kennedy Center building, a day after the Trump-aligned board voted to close most of the performing arts center for repairs. That vote came after a federal judge blocked the institution from returning President Donald Trump’s name to the building. The Republican had said in a social media post that the closure was needed for safety repairs. But he said the repairs, which Congress has allocated $257 million to cover, would only happen if the board was permitted to move forward with plans to add his name to the building.
OpenAI flags new concerning AI behavior, to track model misalignment regularly
OpenAI has disclosed six reports on unexpected or concerning behavior in artificial-intelligence models. The company is introducing a new framework to track and disclose AI misalignment instances. This includes models acting without authorization or evading oversight. The announcement comes as U.S. AI leaders call for a slowdown in development over safety concerns. One case involved a research model inserting jailbreak-like instructions. Another saw an AI agent upload files to the internet without user permission. OpenAI emphasizes the need for a broader consensus on AI alignment research. These cases follow previous disclosures of rogue AI behavior in July.
Driver arrested in a bus collision that happened before a deadly news helicopter crash in LA
LOS ANGELES (AP) — A motorist has been arrested on murder charges after authorities say she slammed her SUV into a city bus in Los Angeles. That killed at least two people and injured six others in a prelude to a second deadly tragedy: the fiery crash of a TV news helicopter used by NBC and Telemundo that was covering the collision. Police say 36-year-old Bailee Lynn Rios was arrested Tuesday night and is being held at a Los Angeles jail with bail set at $4 million. Information on a lawyer who could speak on her behalf was not immediately available. NBC4 Los Angeles identified the two on the helicopter as reporter Eliana Moreno and pilot George Marciniw.
Trump and Whatley double down on the administration's record in North Carolina Senate contest
GASTONIA, North Carolina (AP) — President Donald Trump has tested his midterm campaign appeal in North Carolina as he tries to help his handpicked Republican Senate hopeful and former national party chairman. The rally marked Trump’s most prominent campaign travel since his midterm convention in Dallas. Despite voter frustrations over the Iran war and his economic leadership, Trump has promised more trips before Election Day. Whatley faces a challenging contest against Cooper. Trump’s involvement in midterm races creates a balancing act for Republicans like Whatley, who must maximize support from the president’s core supporters without alienating other voters who’ve soured on the administration amid inflation and the war in Iran.
House holds billionaire Leon Black in contempt of Congress over Epstein investigation
WASHINGTON (AP) — The House has approved a resolution holding billionaire Leon Black in contempt of Congress after he defied the Oversight Committee’s subpoenas in its investigation into disgraced financier Jeffrey Epstein. The swift action, without a formal roll call vote, refers the matter to the Justice Department to decide whether to seek criminal prosecution. The Oversight Committee had subpoenaed Black with a request to appear and to turn over any potential nondisclosure agreements involving the investigation into Epstein. Black’s lawyers have denounced the Oversight Committee’s pursuit of the former head of a private equity firm as an abuse of congressional power.
AP exclusive: Change in human trafficking policy could make some minors easier to deport
The Trump administration has ordered caregivers for migrant children to stop reporting human trafficking concerns directly to the office created to help victims. The directive issued last week has raised fears among advocates that some victims of labor and sex trafficking could be denied services and face tougher odds of obtaining asylum and visas allowing them to stay in the United States. The administration says the change would streamline reporting and cut down on the high number of claims that do not rise to the level of criminal human trafficking. Under the change, the administration will investigate claims before they are submitted to the Office of Trafficking in Persons, which was created to prevent human trafficking and protect victims.
Saudis seek allies' help as missile defenses run low in fight with Houthis, officials say
CAIRO (AP) — Saudi Arabia is running low on missile interceptors and has turned to regional and Western allies for assistance as its standoff with Houthi rebels in Yemen drags on. That's according to two regional officials who on Wednesday said the Saudis have asked France, Britain, Pakistan and Egypt to deploy air-defense support to the region to help defend against missiles and drones fired by Iranian-backed groups. Separately, Saudi Arabia and other Muslim nations are condemning an attempted drone attack on Mecca, Islam's holiest city. The Houthis deny targeting Mecca.
