defying

Kevin Warsh has broken away from US President Donald Trump in his first Fed move, and he has done it with the entire committee behind him.

ADVERTISEMENT

ADVERTISEMENT

The Federal Open Market Committee lifted rates on Wednesday after holding them at 3.5% to 3.75% since December, ending a pause that had grown harder to justify as energy costs pushed prices higher.

Not a single member dissented in a unanimous 12-0 vote.

That matters because the pressure ran in both directions as three regional presidents had voted for a hike in July, while the White House spent months demanding cuts.

Nobody voted for either extreme.

At the time of writing, the market reaction to the decision has been fairly muted likely due to the fact that the hike was widely expected.

A statement stripped to the bone

The Fed’s communication was as striking as its decision.

The statement ran to three short paragraphs, a fraction of the length markets are used to, with no forward guidance and no hedging.

“Inflation remains elevated,” it read, adding that “today’s policy action will support a timelier return to the Committee’s 2 percent goal.”

The word “timelier” carries an implicit admission that the return had been too slow.

Then a sentence the Fed almost never writes: “The Committee will deliver price stability.” Not seeks to, not is committed to. Will.

The economic assessment was also confident throughout.

Activity is “expanding at a solid pace”, domestic spending “has been resilient”, productivity growth is “strong” and capital investment “robust”, while job gains “have kept pace with the workforce”.

Uncertainty remains elevated, the Fed said, owing partly to “geopolitical developments”, its formulation for the Iran war.

By describing an economy in good health, the committee removed the argument that higher rates would damage growth, which is precisely the case US President Donald Trump has been making.

Boxed in by the data

The decision had been building for months.

Three regional Fed presidents dissented in July in favour of an increase, the most in one direction since 2016, and several others said afterwards they were ready to move unless inflation eased which it did not.

The Fed’s preferred gauge, the personal consumption expenditures index, ran at 3.7% in both June and July, with core inflation at 3.3%. Before the Iran war sent fuel prices climbing, core stood at 3%.

Consumer prices held at 3.4% in August, but the monthly increase of 0.4% was the sharpest since May, evidence the energy shock is feeding through. Inflation has now been above the 2% target for more than five years.

Warsh had effectively committed himself at Jackson Hole in August, telling the symposium he “would be hard pressed to describe broad financial conditions as restrictive” and warning that unless underlying inflation moved to target “clearly and at sufficient speed”, the Fed had “work to do”.

Markets took him at his word as the CME’s FedWatch tool put the probability of a rate hike above 90% before today’s decision.

Defying the president who chose him

US President Donald Trump had spent months demanding the opposite, insisting the country should have the lowest interest rates in the world and choosing Warsh partly on the expectation he would deliver them.

Warsh himself said while campaigning for the job that rates could come down.

The treatment of his predecessor sharpened the stakes as Jerome Powell was publicly attacked for moving too slowly, and the US Justice Department opened a criminal investigation into testimony he gave to Congress.

Today’s decision could also have a restoring effect on the perceived independence of the Federal Reserve as an institution.

The technical details point to a Fed settling in at the new level.

The interest rate on reserve balances rises to 3.90% from Thursday, the primary credit rate to 4%, and standing repurchase operations will run at 4%. Seven regional reserve banks requested the discount rate increase.

The Fed’s new dot plot shows 12 of 18 officials expect another 0.25% hike by year-end, taking rates to 4.125%, while four see rates reaching 4.375%.

The hawkish signal extends well beyond 2026 as 14 officials see rates ending 2027 above today’s level, while the 2028 median stands at 3.9% versus 3.4% expected.

The longer-run rate also rose to 3.2%, suggesting officials increasingly believe neutral rates have moved higher while economists also expect more to follow.

MEXICO CITY — When the Trump administration announced this summer that illegal crossings into the U.S. from Mexico had reached historical lows, Homeland Security Secretary Markwayne Mullin declared, “Our border is CLOSED to lawbreakers.”

Even so, the administration continues to pressure both Mexico and U.S. officials serving there — publicly and behind the scenes — to curb illegal immigration further. The crackdown has prompted smugglers to become more creative, turning more often to tunnels once reserved for transporting drugs.

White House Deputy Chief of Staff Stephen Miller, in the White House on Sept. 4, has been the main architect of the Trump administration’s immigration policies.

(Jacquelyn Martin / Associated Press)

Stephen Miller, the main architect of President Trump’s immigration policies, has been in near-daily communication with senior U.S. law enforcement officials, including the U.S. ambassador to Mexico, Ronald Johnson, looking for new ways to stop migrants from entering the United States, according to people familiar with the conversations.

An average of 400 migrants were apprehended while crossing into the U.S. every day in July, according to data by U.S. Customs and Border Patrol. It’s a precipitous drop from the thousands who crossed daily at the peak of a migrant surge in 2022.

Sometimes the number of crossings has dropped to 200 a day. But for Miller, that reduction is still not enough, said sources not authorized to speak publicly about internal matters. Miller’s goal, they said, is to have zero migrants entering the U.S.

Miller has directed officials to increase investigations into migrant smuggling networks, people familiar with his directives said.

Mexican Foreign Minister Roberto Velasco Álvarez, left, and U.S. Secretary of State Marco Rubio in Washington, where they met Aug. 26 to discuss what the minister called “priority issues on the bilateral agenda.”

(Chip Somodevilla / Getty Images)

Since returning to the White House in 2025, Trump has often asked Mexican President Claudia Sheinbaum to crack down on immigration. On Aug. 26, Secretary of State Marco Rubio met with Mexico’s foreign minister, Roberto Velasco Álvarez, and urged him to take “decisive action on illegal immigration,” according to a statement from the State Department.

The Trump administration’s border crackdown has been so effective it’s forced some smugglers literally underground.

Mexican drug cartels are increasingly turning to tunnels built for drug smuggling to ferry migrants into the United States. They are linking into sewer drains, according to people familiar with the trend.

Though the number of migrants apprehended while using tunnels appears to be relatively small — there are no hard statistics — authorities believe it is increasing, given the crackdown on the border and financial incentive for the cartels to smuggle people and not just drugs.

“Enforcement along the border has become more robust and that has increased the demand for alternative methods of passage,” said David Shirk, director of the Justice in Mexico program at the University of San Diego.

The Trump administration has added extra miles of razor wire to border fences, has increased surveillance technology and uses autonomous Predator drones with surveillance and infrared technology to monitor swaths of the border for migrants crossing into the U.S.

1

2

1. A bulldozer sits near Santa Elena Canyon on Aug. 14 in Big Bend National Park, Texas, where contractors have begun construction of a border wall. (Brandon Bell/Getty Images) 2. Protesters gather in San Antonio, Texas, on Aug. 28 to demonstrate against construction of a border wall in Big Bend National Park. (Alma E. Hernandez/San Antonio Express-News via Getty Images)

And, picking up on Trump’s “build the wall” pledge from his initial run for president, more border barriers are being built.

Trafficking through cross-border tunnels is not new. In 2023, Ken Salazar, then the U.S. ambassador to Mexico, said there were at least 200 tunnels that spanned the border. Many of them were found linking Tijuana and San Diego.

But in a twist, some tunnels now connect to drainage and sewer systems. This May, authorities captured 19 migrants, including three unaccompanied minors, in the San Diego storm water drainage system. A remote surveillance camera spotted the migrants emerging from the system.

The smugglers were two brothers who had previously been charged with methamphetamine trafficking in the Northern California town of Yreka in 2017.

Smugglers employ tunneling specialists whose work is getting more sophisticated, outfitting the tunnels with lights, ventilation systems and sometimes mini rail lines. Many tunnels are faster, safer and much more expensive for migrants who would otherwise face increasingly dangerous mountain and desert routes, experts said.

Last year, Customs and Border Protection and Homeland Security Investigations agents also found a tunnel that ran under the Rio Grande from Ciudad Juárez, Mexico into El Paso.

The passage tapped into the El Paso sewer system, where, according to U.S. authorities, migrants surfaced from a manhole. They climbed into a box truck outfitted with a trap door that was parked over the manhole.

Cartels charge migrants from Latin America up to $15,000 dollars each to use tunnels to El Paso, an official familiar with the dynamics said. For people from the Middle East or Southeast Asia, the price can be as high as $25,000.

The tunnel traffic continues to vex U.S. officials.

A Homeland Security Task Force drug investigation of a supposed retail store in Otay Mesa, Calif., resulted in the discovery of a sophisticated cross-border tunnel leading to Tijuana.

(U.S. attorney’s office)

In Tijuana, one tunnel discovered last year stretched from Tijuana to what appeared to be a Buy 4 Less store near the Otay Mesa port of entry. The store never had customer traffic, so U.S. law enforcement suspected it hid a tunnel and began monitoring the business.

Authorities raided the building and found the entrance to a tunnel controlled by the ruthless Jalisco New Generation Cartel. It was 55 feet deep and nearly half a mile long. It featured a hydraulic lift, ventilation and a rail and cart system. Authorities stopped a freezer truck after it left the location and seized more than a ton of cocaine, worth roughly $45 million.

In 2024, U.S. law enforcement found a tunnel in the border town of San Luis, Ariz. Authorities said it was used to smuggle migrants and drugs. Its exit was hidden in an abandoned KFC restaurant.

This article was co-published with Puente News Collaborative. Fisher is a special correspondent.

Where are Big Brother stars Saskia Howard-Clarke and Maxwell Ward now after they defied critics with their romance off screen?

It’s hard to believe, but it is officially 21 years since the sixth season of Big Brother – and arguably one of the most iconic in history – graced our screens.

The competition, which aired in 2005, saw romances galore as winner Anthony Hutton enjoyed a memorable night in the jacuzzi with Makosi Musambasi – which almost led to the first ever Big Brother baby – while Kinga Karolczak got up close and personal with a wine bottle…

Viewers also had a front-row seat to the blossoming bond between Saskia Howard-Clarke and Maxwell Ward, who fell in love in front of the cameras and kept things going long after Davina McCall bid them farewell.

The promotions girl, 23, and the maintenance engineer, 24, both entered the infamous house on the first day, and sparks soon flew. However, while they quickly became besotted, their romance left viewers – and their castmates – divided.

Kemal Shah called the pair out for their closeness in the bedroom, prompting Maxwell to pour water over him, which earned the engineer a stern warning from Big Brother bosses.

However, in scenes slightly reminiscent of Shakespeare’s Romeo and Juliet, they were forced to face off against each other in a Big Brother first after receiving the most nominations from their fellow housemates, meaning they were both up for eviction.

Their romance was briefly put on pause when Saskia axed on day 36, after receiving 71% of the public vote. But it wasn’t long before they were reunited, as her beau was booted out the following week.

The pair dated for over a year, and even purchased a home together, before their relationship came crashing down. Maxwell confirmed their split in an episode of After They Were Housemates in 2007, announcing he was moving out.

Three years later, he appeared to take a swipe at his former flame in a chat with Heat Magazine, claiming that he could have won the show if they had remained single.

“I’m not blowing my own trumpet, but if I hadn’t got with you [Saskia], I would’ve won the show hands down,” he said, via the Sun.

“If I had the time again, and I’m sure you’d say the same thing, I wouldn’t have got with you and you wouldn’t have got with me.”

Touching on his time in the house in an interview in 2020, he said: “You’re going to be propelled to the best looking bird with a massive pair of, you know…

“She was the best of a bad bunch. We were [an item for a white], we bought a house together. When you’re on Big Brother and you meet someone like that, I was insecure. There’s 12million people watching that series.”

While Maxwell has remained out of the spotlight since the show, Saskia embraced the fame and has since worked as a glamour model.

She initially stepped back from the public eye when she became a mum to her son, Phoenix, with her ex-husband, but has since turned to OnlyFans. In a rare 2023 interview, she also revealed that she had found love again on Tinder.

Unpacking her TV romance with Maxwell with the Sun, she said: “He laughed me into bed, that’s the best way to describe it. “He’s a really nice, funny guy and very persistent, I’ll give him that, but time in there is slow, right? I think I was in there for five or six weeks and you’ve been away hiding for two weeks before with no contact with your family, it’s a long time. Then to get close to somebody…

“It happened organically but, listen, if I’d met him on the outside, I don’t mean to be horrible, but he wouldn’t have been my type at all.”

Reflecting on their split, she explained that she found the reaction from the public more difficult than their romance ending for good, adding: “What was frustrating for me was more the ‘told you so. I knew she wouldn’t be with him,’ and I felt bad for him because he had a lot of stick saying that he was punching, which is not nice.”

Like this story? For more of the latest showbiz news and gossip, follow Mirror Celebs on TikTok , Snapchat , Instagram , Twitter , Facebook , YouTube and Threads .