rates

Federal Reserve again leaves interest rates unchanged, citing caution

June 18 (UPI) — The U.S. Federal Reserve held key interest rates steady Wednesday but said it still sees the possibility of two cuts later this year, with expectations that President Donald Trump‘s tariff policies will spike inflation and slow economic growth.

The Federal Open Market Committee kept its borrowing rate in the 4.25%-4.5% range where it’s been since December.

Earlier Wednesday it had been highly expected that the Fed would leave interest rates unaltered. However, the committee indicated that two cuts by the end of the year were not out of the question, with a chance of four future interest rate cuts being a possibility by 2027.

“The Fed’s main message at the June meeting will be that it remains comfortably in wait-and-see mode,” Bank of America economist Aditya Bhave said in a statement earlier in the day.

The Fed reported on inflation trends and other data in the midst of economic uncertainty.

Economic experts pointed to future so-called “stagflationary” economic pressures with the likelihood of the nation’s GDP pushing at a pace of more than 1% and inflation as high as 3%.

“Uncertainty about the economic outlook has diminished but remains elevated,” according to the FOMC, adding how it was being “attentive to the risks to both sides of its dual mandate.”

The uncertainty stems not only from the unpredictable application of tariffs and ongoing trade volatility caused by them, but also from world events likely to have an effect on U.S. financial markets such as the Iran-Israel war.

“Investors should focus on [Fed Chair Jerome] Powell’s take on the softening labor data, the recent benign inflation prints and the risks of persistent tariff-driven inflation,” Bhave added.

Earlier, Wall Street economists had believed the Fed would keep interest rates in the 4.25% to 4.5% range.

The Fed has not cut interest rates so far during the Trump administration. Despite President Donald Trump aggressively pushing Powell to cut interest rates, he has declined, saying there is too much uncertainty in financial markets, largely because of tariffs that have been imposed and threatened.

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US Fed leaves interest rates unchanged amid economic uncertainty | Inflation

The central bank held rates steady despite backlash from US President Donald Trump.

The United States Federal Reserve has left its benchmark rate unchanged despite mounting pressure from President Donald Trump to cut rates.

On Wednesday, the Fed said it will leave its short-term rate unchanged at 4.25 percent to 4.5 percent.

The central bank’s decision was largely in line with expectations, and it has not cut interest rates since December.

The decision comes as policymakers weigh signs of a weakening economy. US retail sales numbers fell more than expected in its report from the US Department of Commerce yesterday. Last week’s jobless claims report from the US Department of Labour came in at its highest in eight months at 248,000.

However, the last jobs report showed the unemployment rate was steady at 4.2 percent, indicating the labour market, while slowing, remains fairly stable.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated,” the central bank said in a statement.

“Fed Chair Jerome Powell has little urgency to ease. But if any easing were to have occurred, it would have been hugely stimulative, and would have lowered US debt interest expense,” Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, told Al Jazeera.

Policymakers are looking at the looming and consistently shifting changes to Trump’s tariff policies as well as the escalating tensions in the Middle East. While oil prices were on the decline before Israel’s attack last week on Iran and its retaliatory strikes, the concerns about a closure of the Strait of Hormuz as tensions escalate have fueled concerns that prices could go up in the coming weeks.

Trump criticises Powell

Before the rate announcement, Trump expressed disappointment in the central bank’s decision to hold rates steady in the past few months.

“Powell’s too late,” he said, referring to his desire for rate cuts. “I call him ‘too late Powell’ because he’s always too late. I mean, if you look at him, every time I did this I was right 100 percent, he was wrong,” Trump said.

He added that he “may have to force something” but it is not clear what Trump meant by that.

He also suggested that he should lead the central bank. “Maybe I should go to the Fed,” Trump said. “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”

Powell’s term is set to expire next May, and Trump has recently walked back his rhetoric on firing the central bank head.

“What I’m going to do is, you know, he gets out in about nine months, he has to, he gets fortunately terminated … I would have never reappointed him, [former President Joe] Biden reappointed him. I don’t know why that is, but I guess maybe he was a Democrat … he’s done a poor job,” Trump said.

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Does California have lower homicide rates than some southern US states? | News

As protesters in Los Angeles denounced United States President Donald Trump’s deportation policies, sometimes leading to clashes with law enforcement, Republican and Democratic politicians sparred over who has the bigger crime problem: blue states or red states.

California Governor Gavin Newsom, a Democrat, took to X to challenge three elected Republican officials who had offered posts critical of California and Newsom’s handling of the recent protests.

  • On June 9, Senator Tommy Tuberville of Alabama said Los Angeles “looks like a third world country – anarchists are in charge, law enforcement is being attacked, and the rule of law is nonexistent”. Later that day, Newsom posted: “Alabama has 3X the homicide rate of California. Its murder rate is ranked third in the entire country.”
  • On June 10, Senator Markwayne Mullin of Oklahoma posted: “America is sick of illegal immigration and weak, lawless liberal leadership.” He called it “rich” that Newsom was suing Trump to reverse the president’s federalisation of California’s National Guard. Later that day, Newsom posted: “If you want to discuss violence, let’s start with your state’s murder rate – which is 40 percent higher than California’s.”
  • Also on June 10, Arkansas Governor Sarah Huckabee Sanders posted: “What’s happening in California would never happen here in Arkansas because we value order over chaos.” The next day, Newsom responded, “Your homicide rate is literally DOUBLE California’s.”

Newsom’s comparisons are close to accurate because he worded his assertions carefully to refer to the homicide rate. California has more homicides than any state, but it also has by far the largest population, and using the rate – which refers to homicides per 100,000 people – makes it possible to compare states on an even footing.

Some Newsom critics replied to his post by arguing that the numbers the governor used are unreliable because California has some of the lowest rates of reporting crimes to the FBI’s data collectors.

But this argument is a red herring: Newsom’s political office confirmed to PolitiFact that his data are from the US Centers for Disease Control and Prevention (CDC). That means his statistics are not subject to concerns about low reporting rates (a problem that commentators have exaggerated).

California fares less well against these three states when measuring overall violent crime, which includes homicides, rapes, aggravated assaults and robberies.

What does the CDC data show?

The Centers for Disease Control and Prevention publishes data showing the number of homicides per state as well as the rate of homicides per 100,000 people. The latter metric allows a comparison of bigger states to smaller states.

According to 2022 data, the latest available, Alabama ranks third in the nation for its homicide rate with 14.9 per 100,000 people. (It trails Mississippi and Louisiana and also the District of Columbia, which generally isn’t considered comparable to the 50 states because it is essentially a city rather than a state.)

Arkansas ranks sixth with a rate of 11.8 homicides per 100,000 people. Oklahoma ranks 20th with a rate of 8.3 per 100,000.

And California? It ranks 30th with a rate of 5.9 per 100,000.

Alabama’s rate is about 2.5 times higher than California’s rate; Newsom said it was triple. Oklahoma’s rate is 41 percent higher than California’s; Newsom said it was 40 percent higher. And Arkansas’s rate is double California’s, which is what Newsom said.

California’s homicide rate is lower than Alabama’s, Arkansas’s and Oklahoma’s

“The CDC data are very reliable when it comes to death and mortality data because these come directly from coroners’ records and state health departments,” said Alex R Piquero, a University of Miami criminologist and former director of the federal Bureau of Justice Statistics. “They are among the most respected of all health data collections.”

Although the CDC’s data are from 2022, the 2023 FBI data show the same general ranking pattern. The FBI collects data from law enforcement agencies rather than coroners’ offices.

In its statistics, Alabama ranked third among the 50 states with 10.3 homicides per 100,000 people. Arkansas ranked fifth with 9.4 per 100,000, and Oklahoma ranked 16th with 6.1 per 100,000. California ranked 25th with 5 per 100,000.

“There is a lot of research on the variation of homicides across states in the United States, and both the CDC and FBI show” that Newsom is generally accurate, Piquero said.

One technical note: In his posts, Newsom flipped back and forth between referring to the “homicide” rate and the “murder” rate. For the CDC data, he should have exclusively used the term “homicide” because the CDC doesn’t use the term “murder”.

What about violent crime overall?

The data on violent crime are less favourable for California.

The data the FBI collected for 2023 show that Arkansas’s violent crime rate ranked fourth among the states, about 620 incidents per 100,000 people. California ranked sixth with 508 per 100,000 people. That was higher than either Oklahoma (15th with 414 per 100,000) and Alabama (19th with 404 per 100,000).

Our ruling

Newsom said California has lower homicide rates than Alabama, Arkansas and Oklahoma.

Data for 2022 from the Centers for Disease Control and Prevention, which criminologists consider a reliable source, show that California has a lower homicide rate than Alabama, Arkansas and Oklahoma and roughly in the proportions that Newsom said.

Data from 2023 collected by the FBI generally mirror the CDC data.

Looking at violent crime more broadly – a category that includes rape, aggravated assault and robbery in addition to homicide – California fares less well, notching rates higher than either Oklahoma and Alabama.

The statement is accurate but needs additional information, so we rate the statement Mostly True.



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Money not infertility, UN report says: Why birth rates are plummeting | Demographics News

Millions of people around the world are unable to have the number of children they desire, and financial constraints, lack of quality healthcare and gender inequality are some of the barriers to reproductive choices, according to a UN report.

The UN Population Fund (UNFPA) unveiled its State of the World Population report on Tuesday, warning that a rising number of people are being denied the freedom to start families due to elevated living costs, wars and lack of suitable partners and not because they reject parenthood.

Roughly 40 percent of respondents cited economic barriers – such as the costs of raising children, job insecurity and expensive housing – as the main reason for having fewer children than they would like, according to the report based on an online survey conducted by the UN agency and YouGov.

Fertility rates have fallen to below 2.1 births per woman – the threshold needed for population stability without immigration – in more than half of all countries that took part in the survey.

On the flip side, life expectancy continues to grow across almost all regions of the world, according to the survey conducted in 14 countries that are home to one-third of the world’s population.

Right-wing nationalist governments, including in the United States and Hungary, are increasingly blaming falling fertility rates on a rejection of parenthood.

But the 2025 State of the World Population report found most people did indeed want children. The survey findings indicated that the world is not facing a crisis of falling birth rates but a crisis of reproductive agency.

How was the study conducted?

UNFPA surveyed 14,000 people from four countries in Europe, four in Asia, three in Africa and three in the Americas.

The study examined a mix of low-, middle- and high-income countries and those with low and high fertility rates.

They were picked to try to represent “a wide variety of countries with different cultural contexts, fertility rates and policy approaches”, according to the report’s editor, Rebecca Zerzan.

South Korea, which is included in the study, has the lowest fertility rate in the world. The report also looked at Nigeria, which has one of the highest birth rates in the world.

The other countries included, in order of population size, are India, the US, Indonesia, Brazil, Mexico, Germany, Thailand, South Africa, Italy, Morocco, Sweden and Hungary.

The survey is a pilot for research in 50 countries later this year.

When it comes to age groups within countries, the sample sizes in the initial survey are too small to make conclusions.

But some findings are clear.

What were the key findings from the report?

According to UNFPA, 39 percent of people said financial limitations prevented them from having a child.

Job insecurity and fear of the future – from climate change to war – were cited by 21 percent and 19 percent of respondents, respectively, for reasons to avoid reproducing.

Elsewhere, 13 percent of women and 8 percent of men pointed to the unequal division of domestic labour as a factor in having fewer children than desired.

Only 12 percent of people cited infertility or difficulty conceiving for not having the number of children they wanted.

That figure was higher in countries like Thailand (19 percent), the US (16 percent) and South Africa (15 percent).

In many cases, there were significant differences in responses depending on which country people were reporting from.

But for Natalia Kanem, executive director at UNFPA, a universal finding from the report is that “fertility rates are falling in large part because many feel unable to create the families they want.”

In South Korea, three in five respondents reported financial limitations as an obstacle to having children.

It was just 19 percent in Sweden, where both men and women are entitled to 480 days of paid parental leave per child, which may also be transferred to grandparents.

Still, birth rates in Sweden are among the lowest in the world.

Zerzan pointed out that one factor alone does not account for falling fertility rates.

“I fully agree with that,” said Arkadiusz Wisniowski, professor of social statistics and demography at the University of Manchester.

“The decision to have a child is complex. Yes, it’s about money. But it’s also about time and access to the right kind of childcare,” he told Al Jazeera.

What role can immigration play?

When deaths outpace births, that is an indication that fertility rates are falling. “That’s not currently true at the global level,” Wisniowski said. “But it is true for numerous countries around the world, especially wealthier nations.”

“And some governments are having to navigate the reality of falling birth rates against the backlash against immigration. Clearly, immigrants can fill labour market gaps, and there is evidence they contribute to economic growth,” he said.

“But it’s no panacea.”

What can governments do about this?

“We can see both the problem and solution clearly,” the UNFPA report noted. “The answer lies in reproductive agency, a person’s ability to make free and informed choices about sex, contraception and starting a family – if, when and with whom they want.”

UNFPA warns against simplistic and coercive responses to falling birth rates, such as baby bonuses or fertility targets, which are often ineffective and risk violating human rights.

“We also see that when people feel their reproductive choices are being steered, when policies are even just perceived as being too coercive, people react and they are less likely to have children,” Kanem said.

Instead, the UN body urged governments to expand choices by removing barriers to parenthood identified by their populations.

Its recommended actions included making parenthood more affordable through investments in housing, decent work, paid parental leave and access to comprehensive reproductive health services.

“The recommendations [in the report] are all good,” Wisniowski said. “They would all empower people to try and achieve their family-linked aspirations. But these comprehensive policies will come with a cost.”

For years, labour economists have warned that falling fertility poses a threat to future prosperity because it increases fiscal pressures due to ageing populations – when the number of pensioners in relation to workers rises.

“Governments may need to tax working people more or take on more debt to address the reality of fewer young people,” Wisniowski noted. “But fertility isn’t something that you can easily tinker with. We are facing considerable uncertainty.”

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Major building society to slash interest rates on 37 savings accounts in days

A MAJOR building society is set to slash interest rates on 37 of its personal savings accounts within days.

Newcastle Building Society is dropping rates on dozens of variable rate savings accounts from June 5.

Person putting coins into a piggy bank.

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Hand putting coins in a piggy bank for save money and Saving Money concept.Credit: Getty

It comes after the Bank of England (BoE) cut its base rate from 4.5% to 4.25% earlier this month.

The base rate is the rate charged by the BoE to smaller high street banks on loans, with any fall usually mirrored in savings rates.

Newcastle Building Society is reducing rates on the 37 personal savings accounts by 0.25 percentage points.

The Double Access Saver/ISA (Issue 4) will drop from 4.05% to 3.80%, for customers eligible for a bonus interest rate.

Meanwhile, the Newcastle Cash Lifetime ISA (Issue 3) will fall from 2.70% to 2.45%.

The Newcastle Junior Cash ISA will be cut from 3.75% to 3.50% and the Regular Saver Plus from 2.50% to 2.25% for anyone receiving the bonus interest rate.

Customers with fixed-rate savings accounts won’t see interest rates fall from June 5.

Interest rates on two variable rate savings accounts – the Loyalty Saver (Issue 1) and Quadruple Access Saver/ISA (Issue 1) – will also not change as they have only been available to customers since April 24.

You can view the table above to find out how the interest rate on your savings account has changed.

Or, you can visit www.newcastle.co.uk/savings/manage-your-savings-account/interest-rates and click on “Current and Closed Issue Variable Savings Interest Rates”.

What is the Bank of England base rate and how does it affect me?

The Sun asked Newcastle Building Society to comment.

MAJOR BANKS CUTTING RATES

A host of banks are reducing interest rates on savings accounts as the BoE continues to cut its base rate.

HSBC is cutting rates on eight of its savings accounts from June 3, and joins NatWest and Nationwide who are both doing the same.

Nationwide is cutting interest rates on over 60 savings accounts from June 1 including a number of ISAs and easy access accounts.

NatWest is also cutting rates on a number of accounts from the end of this month.

It comes after the BoE cut its base rate from 4.50% to 4.25% on May 8.

The central bank raises its base rate to discourage people from spending and encourage them to save, which in turn is designed to make inflation fall.

It lowers its base rate when inflation is under control, meaning people are encouraged to spend and pump money into the economy.

A lower base rate signals good news for those with mortgages who see the interest rates charged on them fall.

However, it’s usually bad news for those with savings accounts as banks slash interest rates.

If you’ve got a savings account with an interest rate set to drop, it might be worth shopping around for a better deal now.

Check out comparison sites like moneysavingexpert.com and moneyfactscompare.co.uk to browse the best out there.

According to Moneyfacts, Chip is offering the best rate on an easy access savings account, with a rate of 4.77%.

Meanwhile, the best easy access cash ISA is also with Chip and offering a rate of 4.99%.

Always look beyond just the headline interest rate on any savings account though.

Some offer additional perks which can make them more cost-effective and suited to you, based on your circumstances.

For example, some offer you access to free TV subscriptions or cheaper or free cinema tickets.

Different types of accounts pay out interest at different times too while others will offer a bonus interest rate which falls after a set period.

Some savings accounts penalise you for making withdrawals over a certain limit.

Meanwhile, ISAs can be effective for saving cash as any interest earned on them is tax-free.

Read more below about the different types of savings accounts and what they offer.

SAVING ACCOUNT TYPES

THERE are four types of savings accounts fixed, notice, easy access, and regular savers.

Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.

But we’ve rounded up the main types of conventional savings accounts below.

FIXED-RATE

A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.

This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.

Some providers give the option to withdraw, but it comes with a hefty fee.

NOTICE

Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.

These accounts don’t lock your cash away for as long as a typical fixed bond account.

You’ll need to give advance notice to your bank – up to 180 days in some cases – before you can make a withdrawal or you’ll lose the interest.

EASY-ACCESS

An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.

These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.

REGULAR SAVER

These accounts pay some of the best returns as long as you pay in a set amount each month.

You’ll usually need to hold a current account with providers to access the best rates.

However, if you have a lot of money to save, these accounts often come with monthly deposit limits.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

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