The Federal Reserve voted to hold its key interest rate steady, sending US government borrowing costs to their highest level since 2007. The decision spooked investors, who are concerned about the US economy's ability to absorb rising inflation, exacerbated by renewed hostilities with Iran. Fed Chair Kevin Warsh stated the central bank would 'not waver' in its commitment to tackling rising prices.
Stock Market Declines
US stocks fell sharply on Wednesday. The S&P 500 index closed down 1.5%, the Dow Jones industrial average fell 2.2%, and the tech-heavy Nasdaq dropped 1.7%. The sell-off reflected fears that the Fed may not act quickly enough to tame inflation, which cooled to an annual rate of 3.5% in June after a brief ceasefire between Washington and Tehran, but has since resumed its upward trend.
Renewed Strikes on Iran
The US military launched fresh strikes on Iranian targets in response to Tehran's attack on American forces in Jordan. The strikes, conducted over two hours, targeted 'dozens' of sites belonging to Iran's Revolutionary Guards Corps. This came after the US and Saudi Arabia jointly struck Iran-backed militias in Iraq, killing at least 20 fighters and six Iranian advisers. The renewed hostilities sent oil prices soaring, with Brent crude jumping 7.3% to over $88 a barrel.
Fauci Invokes Fifth Amendment
Dr. Anthony Fauci refused to answer questions at a Senate committee hearing on the origins of Covid-19, invoking the Fifth Amendment. He accused Republican Senator Rand Paul of having an 'unhinged obsession' with him. Democratic Senator Gary Peters criticized the hearing as damaging to science and deterring experts from public service. Jessica Glenza's analysis noted that Republicans continue to politicize science, using Fauci as a political target.
UK Reviews Jurisdiction Over US Military Crimes
The UK government and police chiefs are reviewing why US military personnel accused of serious crimes on UK soil are avoiding British justice. Survivors of sexual assaults by US personnel report that perpetrators are prosecuted for lesser offenses. The review involves multiple government departments examining the ceding of jurisdiction to US military investigators.
Other News
The death toll from the powerful earthquake in Japan rose to 30, with searches ongoing for survivors in collapsed buildings. The US Senate judiciary committee postponed a vote on Trump's pick for attorney general, Todd Blanche, pending assurances on a $1.8bn fund. Russian airstrikes killed at least 13 in Ukraine, causing Poland to scramble fighter jets. Elon Musk's xAI sued Minnesota over a law banning 'nudification' technology. European football authorities called an emergency meeting on Fifa's plan to sell World Cup stakes to private investors.
Stat of the Day: Hollywood Fraud
Hollywood producer Jason Cloth was charged with seven counts of wire fraud for allegedly defrauding investors of $100 million, according to a federal grand jury in Chicago.
Climate Check: Wildfires in Europe
Wildfires fueled by the climate crisis continue across Europe. Three firefighters died battling blazes on the Greek island of Crete. Temperatures reached 100F in Bordeaux, where French firefighters contained a large fire near pine forests.
Last Thing: Possible Coca-Cola Precursor
An Italian friar discovered a document from a Florence convent pharmacy describing a medicinal potion made from Bolivian coca leaves and kola nuts, suggesting it could be a precursor to Coca-Cola.
