Fed Raises Rates: The Federal Reserve boosted its benchmark rate by 0.25 percentage points to a 3.75%–4.00% range — its first hike in more than three years — citing elevated inflation and a firming economy. Economists and Fed officials expect at least one more increase later this year. Borrowing costs for credit cards, auto loans and some mortgages are likely to rise, while savers may see modestly better deposit yields. Markets mostly rallied as investors also weighed a drone attack that disrupted Saudi oil flows.
Fed Raises Rates For First Time Since 2023 — What It Means For Your Wallet
Federal Reserve chair Kevin Warsh
Good morning. If you want a show-stopping weekend breakfast, your oven can handle pastries, quiches and French toast all at once — here’s some quick inspiration. Now for the headlines.
The Federal Reserve moved yesterday to raise its benchmark interest rate by a quarter percentage point, taking the federal funds target range to 3.75%–4.00%. This is the Fed's first rate hike in more than three years.
Why the Fed Acted
Officials cited persistently elevated inflation alongside signs of a strengthening U.S. economy, including resilient consumer spending and steady business investment. Most policymakers signaled they expect at least one more rate increase later this year.
King Charles III
What It Means For Your Money
Borrowers should prepare for higher costs on credit cards, auto loans and some mortgages as banks and lenders pass on increases. Savers may see slightly better yields on high-yield savings accounts and short-term deposits, though changes will be gradual.
Market Reaction
Global stocks mostly rose after the announcement, helped in part by hopes that Saudi authorities can restore oil flows after drones damaged part of a pipeline over the weekend.
Other Top Stories
Royal Family: Buckingham Palace responded after Charles Spencer, Princess Diana’s brother, claimed the future King Charles III once said, "we'll forget her soon enough" after Diana's 1997 death; the Palace suggested grief may have affected memory.
Euan Cherry/NBC
Entertainment: Influencer Sarah Jane Nader and partner Hailey Bills were the second duo eliminated from Season 35 of Dancing With the Stars after a jive to Avril Lavigne's "Sk8er Boi."
Washington: The House approved a sanctions package targeting Russian officials and key sectors of its economy. The bill — named for the late Sen. Lindsey Graham — now goes to President Trump.
Crime: Siddharth Jawahar was sentenced to 11 years in prison and ordered to repay $31.35 million in a Ponzi scheme that named NFL star Travis Kelce among the victims.
Coleman Louie and Mary Louie
Personal: The Obamas are mourning the loss of their longtime Portuguese Water Dog, Sunny, who died at 13. Former President Obama shared the news on Instagram.
Tonight's TV & Sports
NBC premieres The Traitors: New Blood at 8:00 p.m. ET. On Prime, the Buffalo Bills host the Detroit Lions at 8:15 p.m. ET in the first regular-season game at Buffalo's new Highmark Stadium. The Phillies play the Mets at 7:15 p.m. ET on Fox. WNBA action resumes with Sparks vs. Wings and Aces vs. Storm on USA Network.
Human Interest & Tip
Despite almost no sewing experience, Coleman Louie taught himself to sew and made a personalized purse for his girlfriend, Sandy Yen — with help from his mother. "She couldn't get over what a good job I did," he said.
Daily Tip: To cut down on endless scrolling, decide how you want to use your phone and move distracting apps so they're harder to reach.
About The Yodel: The Yodel is a morning newsletter from Yahoo News that brings weather, national news, politics, entertainment and sports — in four minutes or less.
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