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Canadian officials have responded positively to a proposal from the European Union that would grant Canada 'associate member' status in some EU framework. The specific scope and terms of the arrangement were not detailed in the available report, which instead focused on an unrelated segment about US interest rate hikes.
The US central bank lifted its benchmark interest rate, marking the first increase in three years as it responds to persistent inflation pressures. The move comes as American consumers face rising prices, with fuel costs climbing sharply amid geopolitical tensions in the Middle East.
The Federal Reserve raised interest rates on Wednesday for the first time since 2023, increasing borrowing costs for consumers just as prices for electronics, groceries and housing have been climbing for the past year and a half. Economists note that even if the Fed succeeds in slowing inflation toward its 2% target, existing price increases won't reverse, meaning consumers face a higher cost baseline going forward.
The Federal Open Market Committee voted unanimously to raise interest rates by a quarter point, marking the Fed's first increase since July 2023 and pushing its benchmark rate to a range of 3.75 to 4 percent. Chair Kevin Warsh cited persistently high inflation as the reason for the move. The change will ripple differently across consumer debt, from mortgages to car loans to credit cards.
A LendingTree survey of over 1,500 credit cardholders found that 41% typically pay only the minimum due on at least one card, a habit that jumps to 58% among Gen Z but falls to 19% among Baby Boomers. The average indebted U.S. cardholder carries a balance of $7,756, and 44% of respondents said they don't know the interest rate on their cards.
Kevin Warsh, the Federal Reserve's new chair, has broken from his predecessors by declining to offer clear signals about future interest rate moves, even as inflation remains elevated. At his most recent press conference he repeatedly avoided answering whether the Fed would raise rates if inflation persists, leaving investors and economists uncertain about his approach. He is expected to address these concerns in a closely watched speech at the Fed's Jackson Hole symposium.