“Further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion,” Barr said in a speech in Chicago. “Inflation is above our 2% target and not clearly trending toward target in a timely way. Moreover, risks to achieving our inflation target have increased, while risks to the labor market have receded.”

Jennifer Schonberger | Yahoo Finance

The average 30-year fixed-rate mortgage jumped 15 basis points to 7.12% in the week ended September 18, the Mortgage Bankers Association said on Wednesday. It was last higher in May 2024.

Mortgage rates ‌have risen more than ⁠a full percentage point since joint US-Israeli strikes against Iran began pushing up the global price of oil ⁠in late February, putting the squeeze on prospective homebuyers and a chill into the US housing market.

Ann Saphir | Yahoo Finance

Such a move would mark the Fed’s first increase in the fed funds rate since 2023, when the Jerome Powell-led central bank concluded its post-pandemic hiking campaign. However, inflation has now remained above the Fed’s 2% target for more than five years, with the war in the Middle East serving as the latest driver of higher prices.

Grace O’Donnell | Yahoo Finance

The median Fed official expects one more rate hike this year, according to the central bank’s Summary of Economic Projections, also known as the dot plot.

The move was the Fed’s first increase in the fed funds rate since 2023, when the Jerome Powell-led central bank concluded its post-pandemic hiking campaign. It was also largely priced in by the market, even as Federal Reserve Chairman Kevin Warsh has been adamant about not providing markets with forward guidance.

Markets will closely scrutinize Warsh’s press conference at 2:30 p.m. ET for hints about his thinking on inflation and monetary policy in the next few years.

Grace O’Donnell | Yahoo Finance

The Digital Asset Market Clarity Act received 50 votes for and 49 against the motion to proceed, short of the 60 votes needed to advance, a threshold that would have required at least seven Democratic “yes” votes and all 53 Senate Republicans.

Sen. Elizabeth Warren (D-Mass.) has been an outspoken critic of the legislation, saying it “fails to adequately protect investors, our financial system, and our national security. However, Republicans say the latest draft included more than 100 revisions Democrats requested, including stricter ethics guidelines.

Hal Bundrick, CFP® | Yahoo Finance

According to Fidelity Investments’ latest quarterly analysis, 769,000 retirement savers have a million dollars or more in their 401(k). Average 401(k) balances grew 10.5% in the second quarter, marking their strongest quarterly growth since the fourth quarter of 2020, thanks partly to stock market gains.

The total average savings rate also held at record levels for the second consecutive quarter, remaining at 14.4% for 401(k) savers and 12% for 403(b) participants.

At the same time, Fidelity data shows more savers tapped their accounts for cash to cover expenses: 19.5% of retirement savers had an outstanding 401(k) loan in the second quarter, up from 19.2% at the end of the first quarter. The share of workers who took a hardship withdrawal increased year over year to 3%.

Ivana Pino | Yahoo Finance

“I think what we’re seeing across the board with wealth creation in particular is just the pace of this wealth creation has happened so quickly, and scale is just tremendous,” Goldman Sachs partner and San Francisco region head of private wealth management Brittany Boals Moeller told Yahoo Finance at the firm’s Communacopia & Tech conference.

Brian Sozzi | Yahoo Finance

Ahead of the Fed policy meeting in just over two weeks, Barr said the outlook for inflation and the economy will top the agenda.

“If trends in the data give me some confidence that inflation is moderating on a path to 2%, then I think we can take a bit more time to assess our policy stance,” Barr said, according to prepared remarks. “However, if inflation appears not to be moderating sufficiently, then I think we should act decisively to raise rates.”

Jennifer Schonberger | Yahoo Finance

Global bond yields are gripping markets, jumping back to their highest level in almost two decades as higher oil prices, inflation fears, and heavy government borrowing continue to add pressure.

Here is how rising Treasury yields could impact your finances, including mortgages, credit cards, and car loans.

Hal Bundrick | Yahoo Finance

According to the US Department of Energy, the US Strategic Petroleum Reserve declined by 6 million barrels last week to 298.7 million. Data from the Energy Information Administration shows that’s the first time the stockpile has dipped below 300 million barrels since 1983.

The US began the year with around 415 million barrels in the reserve, but that’s come down as the Trump administration has released more crude into the market to offset disruptions from the Iran war.

Markets have been hopeful that the Strait of Hormuz could soon reopen after comments from Trump and other officials last week suggested a deal was close. However, over the weekend, Trump said that the US was content to let the economic toll of the war bring Iran back to the negotiating table.

Max Adams | Business Insider