High High Hopes Rates

Federal Reserve Chair Kevin Warsh made like a hawk and signaled a potential rate hike on the horizon.

At the Fed’s Jackson Hole conference Friday, Warsh acknowledged the central bank would “have work to do” if inflation remains stubbornly above its 2% target, coming closer than he ever has to tipping his hand. Inflation has cooled, but Personal Consumption Expenditures (PCE: the Fed’s preferred inflation gauge) sat at 3.7% in July.

Post-pandemic inflation peaked at 9.1% in June 2022 and bottomed out at 2.3% in April 2025, before beginning to climb again. The Fed’s main lever for lowering that number is interest rates: raising them makes borrowing pricier, so people (in theory) spend less and prices (hopefully) go down (explore our interactive graphic to see what this means for your wallet).

The Fed meets again in mid-September for one more inflation pulse check before deciding on rates.

PRAY WITH US
Great Provider, we confess that as the price of goods rises, so do our anxieties; as our paychecks stretch thin, so does our hope. Wrap your righteous right hand around your people and meet us with miraculous provision, divine rest, and strength to persevere. Relieve us of this burden, O God!

Equip our lawmakers to legislate with wisdom, striking that delicate balance between the health of this economy and the welfare of their people. Use your church to meet needs generously and to shine the light of hope into the fear gripping this community. Amen. (read full prayer here)