US economy

The US Federal Reserve has raised interest rates for the first time in several years, a shift in monetary policy that affects borrowing costs across the economy. Coverage is focused on what the move means for everyday finances, including credit card bills, mortgage rates, savings returns and loan payments.

Bloomberg reports that the bond market is edging closer to signalling alarm about the state of the economy, with moves in US government debt prices suggesting investors are increasingly worried about the outlook. The item has drawn attention among market watchers tracking whether bond traders are pricing in a slowdown ahead of official data.

President Donald Trump has announced he is rolling back fuel economy standards for cars introduced under the Biden administration. The rules, which required automakers to improve vehicle efficiency, had been a target of the administration's broader effort to undo former President Joe Biden's climate and environmental policies.

The US economy continues to show strong momentum, but rising government debt servicing costs are drawing attention as a growing strain. Commentators are weighing robust growth against the mounting price of financing federal deficits, a tension likely to feature in debates over interest rates, fiscal policy and the sustainability of US public finances.

The United States is set to finalize vehicle fuel economy standards that are significantly lower than previously planned, according to a Reuters report. The rollback would allow automakers to sell less fuel-efficient vehicles than earlier rules required, easing regulatory pressure on the industry while drawing criticism from environmental groups concerned about rising emissions and fuel costs for consumers.

The Trump administration is preparing to roll back vehicle fuel economy standards put in place under former President Biden. The move would loosen emissions and mileage requirements for automakers, reversing one of Biden's key climate policies. It is being widely reported by major US outlets including Bloomberg and the Los Angeles Times, with implications for car manufacturers and US climate commitments.

Discussion is focusing on a K-shaped US economy, in which higher-income households continue to increase spending while lower-income consumers pull back under pressure from prices and borrowing costs. Analysts, including PwC, are examining what this split means for retailers and the broader economic outlook, as aggregate consumer spending figures mask widening differences between income groups.

Pakistan's finance minister held talks with the US Export-Import Bank that covered financing for Boeing aircraft, according to an adviser. The discussions point to Islamabad seeking American export credit support for aircraft purchases as it works to secure external funding and stabilize its economy.

Iraq and the United States have agreed to resume shipments of US dollar cash into Iraq, according to Middle East Monitor. The agreement eases a disruption that had affected dollar supplies to Iraqi banks and the local currency market, where the greenback is widely used for trade and savings. Observers are watching whether the renewed flows will stabilise the Iraqi dinar and relieve pressure on the country's financial system.

President Donald Trump said oil prices will 'come plummeting down' as he promoted the strength of the US economy. The remarks were picked up across news outlets covering his economic messaging, with attention focused on whether falling energy costs will materialise and what they would mean for inflation and consumers.

Mexico and Brazil are both refusing to follow Washington's military approach in South America, rejecting pressure to align with US interventionist tactics in the region. The two largest Latin American economies are instead pushing back against any export of America's security playbook, insisting on sovereignty and regional autonomy in how security matters are handled across the hemisphere.

Commentary is drawing comparisons between today's roughly 7.5% mortgage rates and the 18% rates US homebuyers faced in the early 1980s. The argument making the rounds is that the two situations differ sharply: home prices, household debt levels, affordability and the wider economy have changed so much that the nominal rate comparison is misleading for buyers deciding whether to wait or lock in now.

President Trump announced that his administration has scrapped an electric vehicle rule introduced under Joe Biden and has updated federal fuel economy standards. The move reverses one of Biden's signature climate policies, which had pushed automakers toward greater EV production. The change is likely to reignite debate over emissions rules and their impact on the US auto industry and consumers.

The United States and China have reached a major trade framework that reportedly cuts the US trade deficit with China in half. The announcement marks a significant step in easing tensions between the world's two largest economies. The exact terms of the agreement and how the deficit reduction will be achieved have not yet been detailed, and reactions from businesses and lawmakers are still coming in.

New orders for US durable goods were unchanged in August, according to the latest Commerce Department figures, falling short of the growth many analysts expected. The flat reading suggests businesses remained cautious on big-ticket investments amid uncertain demand and higher borrowing costs. Economists say the data adds to questions about the strength of US manufacturing heading into the final months of the year.