Sen. Elizabeth Warren (D-Mass.) said the Federal Reserve’s recent interest rate hike will hurt American families as credit card interest rates rise, blaming President Donald Trump for “failed” economic policies.
The Rate Hike’s Cost
“The Fed just raised interest rates. And families will pay the price,” Warren said in a post on X, adding that the hike was “all thanks to Donald Trump’s failed economic policies.”
Credit card users alone are expected to pay an additional $2 billion in interest charges over the coming year, she said.
In a separate statement on August’s inflation data, the senator said Trump’s “illegal war in Iran is sending energy prices soaring” and that rising Treasury yields mean “higher mortgage rates and more expensive borrowing for families already stretched thin.”
She added that Trump is “too busy calling an affordability crisis of his own making a ‘hoax’ to do anything about it.”
What the Inflation Data Showed
The Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, rose 0.3% in August, below the 0.4% consensus, with the annual rate holding at 3.4%.
Energy prices drove much of the monthly increase, rising 2.3%.
The Fed raised rates by 25 basis points earlier this month to a range of 3.75%-4.00%, the first since 2023.
Traders currently see a 61.8% chance the Fed holds rates steady at its October meeting, versus a 38.2% chance of a hike, according to the CME FedWatch tool.
High Diesel Price At Pumps as Trump Weighs Export Ban
Americans are already facing high gas prices, worsened by the ongoing war with Iran and attacks on its oil infrastructure, even as peace talks between Tehran and Washington, mediated through Qatar, continue.
Gas prices remain elevated alongside diesel, which is near record highs, averaging $6.4139 per gallon Wednesday, up about 73% from a year ago, according to AAA.
At the time of writing, Brent crude for December delivery was down 0.99% to $97.06 a barrel, while WTI futures were down 1.14% to $89.28, according to Investing.com.
The Financial Times reported that the Trump administration have warned foreign allies, including the U.K., about potential disruptions to their diesel supplies, with the White House working with European allies on a possible ban.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
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