TIME is reporting that the Federal Reserve raised its key interest rate on Wednesday for the first time since 2023, defying persistent calls from President Donald Trump for lower rates. It said the move was an attempt to quell elevated inflation.
Trump lashed out at the central bank after the decision, posting on Truth Social that interest rates in the United States should be 1% or less and urging the Fed to lower them "and fast." The Fed's newly minted chair, Kevin Warsh, whom Trump appointed in May to succeed Jerome Powell, said all 12 members of the Federal Open Market Committee, including himself, voted unanimously for the 0.25 percentage point hike. The federal funds rate now ranges between 3.75 and 4%.
TIME also is reporting that Americans are growing more concerned about the environmental impact of artificial intelligence as data centers expand across the country. It said a new poll from The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago found that about 53% of Americans are extremely or very concerned about AI's environmental effects, up from 41% last year. The concern spans party lines, with 65% of Democrats, 42% of Republicans and 49% of independents reporting such worry. TIME said there are currently 1,287 data centers operating in the U.S., with more than 2,000 planned projects.
Separately, TIME is reporting that Saudi Arabia accused the Iran-backed Houthis of an attempted attack on Mecca. It said Major General Turki al-Malki, spokesperson for the Saudi-led coalition in Yemen, said the Houthis launched a drone toward Mecca on Tuesday evening that was shot down before entering the city's restricted airspace. Al-Malki called the security of the Two Holy Mosques and pilgrims a "red line." The Houthis acknowledged launching a missile from Yemen but said it was aimed at the King Fahd air base in Taif, and denied the allegation.
TIME is reporting that Democrats are training at least 10,000 volunteers ahead of November's midterm elections to respond to potential voter intimidation at polling places. It said the effort, called the New Battlefield Project, is coordinated by the Association of State Democratic Committees under the Democratic National Committee. Jane Kleeb, the Nebraska Democratic Party chair and ASDC president, said volunteers dubbed "Democracy Protectors" will wear blue and be trained to de-escalate conflicts and document potential bad behavior. Kleeb said the initiative was spurred by concerns that Trump could send federal agents to polling places.
TIME also is reporting that the average interest rate for a 30-year fixed mortgage reached 7.08% on Wednesday, a one-year high, according to the Mortgage Research Center. It said Mexican President Claudia Sheinbaum delivered her second Cry of Independence on Tuesday, on the eve of the country's Independence Day.