Fed holds interest rates in place (for now)
The Federal Reserve has decided to keep interest rates unchanged but plans to increase rates later this year, the Fed chair Jerome H. Powell announced Wednesday, following a meeting on the topic. The decision to keep rates on hold would allow policymakers enough time to reflect on how much interest rates have increased over the past 18 months and whether or not inflation remains a threat. Fed officials also announced that more gradual rate reductions will follow the upcoming rise in 2024 and 2025.
Government expected to shut down
The federal government is approaching a potential shutdown due to Congress not having been able to pass adequate funding legislation for the president to sign into law. The shutdown would cease all non-essential work and services, and no paychecks would be sent until the end of the shutdown. If House Republicans and Democrats are unable to come up with a deal by Sunday, Oct. 1, then the government would proceed with a shutdown starting that same day at 12:01 a.m. If it were to occur, a shutdown could remain in effect for weeks.
Former Iowa Senator dies
Dick Clark, a Democrat known to have unexpectedly won a term as a senator for Iowa in 1973, passed away Wednesday. Clark was 95 years old and died at his home in Washington, according to his family. He used his single term as senator to shift U.S. foreign policy to the left following the Vietnam War. He also joined the Foreign Relations Committee in 1974 and chaired a subcommittee related to African affairs, which inspired him to devote the remainder of his term to pushing forward policies that would help newly independent African nations.