The Economist

The US Federal Reserve has decided to keep interest rates unchanged even as inflation reaches its highest level in three years. The decision means borrowing costs will stay where they are for now, with policymakers weighing stubborn price pressures against signs of strain in the economy. Markets and economists are watching closely for signals on when, or whether, the central bank might move rates again.

Economists are split over whether the US Federal Reserve will raise interest rates this year. ABC News reports that analysts disagree on the outlook, with arguments on both sides about inflation pressures, labor market strength, and the risk of slowing growth. The division reflects genuine uncertainty about how the economy will perform in the months ahead, leaving markets and businesses unsure about borrowing costs.

Billionaire hedge fund manager Bill Ackman criticized the Federal Reserve's latest rate hike, calling it a mistake that he argues could actually make inflation worse rather than curb it. His comments add to a running debate among investors and economists over whether the central bank is tightening policy too aggressively as price pressures persist.

Japan's national debt stands at roughly twice the size of its economy, the highest ratio among developed nations, but economists writing in Fortune argue the United States' debt load of around $40 trillion is the more worrying case. They point to America's faster-growing deficits and political gridlock over spending, contrasting it with Japan's domestic, stable creditor base.

Billionaire hedge fund manager Bill Ackman says the Federal Reserve's latest rate hike could backfire and make inflation worse rather than curb it. His argument adds to a growing debate among investors and economists over whether further monetary tightening is the right response to persistent price pressures.

Iran has declared that diplomacy is the only path open to the United States, a statement reported in The Economist's World in Brief roundup. The same briefing covers disruption of the Orange Order march at Drumcree in Northern Ireland, a longstanding and contentious parade. Both stories are drawing attention amid ongoing tensions over Iran's nuclear programme and persistent disputes over parading in Portadown.

Australia's four major banks are now unanimous in forecasting that the Reserve Bank of Australia will raise interest rates at its meeting next week. The shift to a shared expectation reflects growing conviction among economists that tighter monetary policy is needed to curb persistent inflation, and borrowers are bracing for another increase in mortgage costs.

The Reserve Bank of Australia is widely expected to raise the cash rate to 4.6%, which would take borrowing costs to their highest level since 2011. The anticipated hike is drawing attention from homeowners and economists concerned about mortgage repayments and inflation, with debate focused on how much further the bank will go to bring prices under control.

The Economist examines how climate change is reshaping national security, arguing that rising temperatures, extreme weather and resource pressures are becoming core defense and foreign policy concerns rather than purely environmental ones. The piece highlights how governments are being forced to plan for climate-driven instability, migration and strategic competition alongside traditional military threats.

US mortgage rates have pushed past 7%, prompting questions about where the housing market is headed. Higher borrowing costs are expected to price out more buyers, reduce affordability, and cool home sales further. Commentators are debating whether prices will fall as demand weakens, or whether tight housing supply will keep values elevated despite the steep cost of financing.

The Economist argues that European industry is in better shape than commonly believed. The piece pushes back against pessimistic narratives about Europe's manufacturing decline, suggesting the sector's condition is stronger than prevailing opinion holds.

Germany's rapid shift to electric vehicles is cutting emissions but also eroding fuel-tax revenue that finances road maintenance. The pace of the transition has pushed policymakers to consider redesigning how roads are funded, sparking debate among economists and commentators about alternatives such as distance-based charges and other road-user fees to replace declining fuel taxes.

Eurostat data show domestic producer prices in the European Union rose 1.4% in July 2026. The increase points to continued cost pressures at factory and wholesale level, a key early indicator for consumer inflation across the bloc. Economists and policymakers will be watching whether the rise feeds through to retail prices or reflects temporary energy and input cost movements.

A group of Nobel Prize-winning economists has signed a public letter voicing support for the proposed tax on billionaires' wealth in California. The letter, hosted by economist Gabriel Zucman, a leading advocate of wealth taxation, argues the levy is economically sound. Supporters say endorsements from such prominent economists strengthen the measure's credibility against critics who claim it would drive the wealthy out of the state.

Realtor.com has updated its 2026 housing forecast, projecting that home price growth will cool further and fall behind the pace of inflation. The revised outlook suggests sellers may see weaker price gains while buyers could face somewhat improved affordability, though elevated mortgage rates continue to weigh on the market heading into next year.

MicroStrategy co-founder Michael Saylor has outlined what he calls a 'bill of digital rights', a set of principles he argues are needed to secure prosperity in the emerging digital economy. Saylor, a prominent bitcoin advocate, has long argued that property rights in the digital age require new frameworks. Details of the proposal and reactions from economists and policymakers remain limited so far.

CBC News has published a Q&A with an economist examining why Alberta's economy is growing faster than the rest of Canada this year. The discussion reportedly covers the factors driving the province's outperformance, a topic of interest given ongoing national debates about regional economic inequality, energy development, and interprovincial migration.

Economist and long-time Bitcoin critic Peter Schiff says a quantum computing hack of the cryptocurrency could prompt him to short the entire Bitcoin market. At the same time, he suggested Bitcoin's current cycle could peak at around $600,000. The comments blend his usual bearishness on crypto with an unusually large price target, drawing attention from both Bitcoin supporters and skeptics across financial media.

Home asking prices in the United States have declined over the past year, according to a new analysis from Laredo Morning Times. The report also tracks how prices have shifted over the past decade, giving buyers and sellers a longer view of the housing market beyond the recent cooling. The dip adds to ongoing debate about whether the housing market is finally softening after years of steep increases.