Fed Raises Rates for the First Time in 3yrs & What Happened to Ed Sheeran’s Tour

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Why did the Federal Reserve raise rates for the first time in three years?

Neil Freiman 0:00
Good morning, Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, Japan hits an unthinkable
Toby Howell 0:07
age threshold. Then, for the first time in three years, the Fed has hiked interest rates. It's Thursday, September 17th. Let's ride.
Neil Freiman 0:23
They're calling it one of the best takes of all time, an idea that will forever change the way you order food at a diner. On a podcast yesterday, Big Cat from Barstool noted how when you're having breakfast out, you always wanna eat pancakes, but you never want to order pancakes for yourself because you don't wanna just do pancakes. How to solve this dilemma? pancakes for the table. It alleviates pancake anxiety for everyone, unlocking them to order something more substantive like eggs while also having one or two pancakes placed in the middle of the table. Toby, how have we not heard about this before?
Toby Howell 1:00
I would expand it too to include pretty much any sweet breakfast dish. Be the guy who orders the cinnamon roll that everyone is eyeing or the French toast or the waffle. And actually, now that I'm saying that, expand it to include any appetizer, not even just at breakfast. There's always something on the menu like a pig's in a blanket or a fried pickles that you don't want to be the person caught ordering for yourself. But you would definitely eat it if it arrived at the table. So maybe take it upon yourself. Be the table captain. Take the plunge. Order the pancakes. Order the pigs in the blanket. Make everyone happy. And now a word from our sponsor, Hotels.com. Neil, you ever stay in a colonial hotel? No.
Toby Howell 1:41
Why? Because I just did on this work trip and they don't
Neil Freiman 1:45
have Wi-Fi or plumbing. Sounds like you could use business preferences from Hotels.com. It helps travelers find the right hotel faster by remembering their go-to work trip requirements.
Toby Howell 1:55
Travelers set their preferences once, including fully refundable stays, Wi-Fi, breakfast, gym access, and more. Then future business trip searches automatically surface matching hotels.
Neil Freiman 2:04
That way you can book work trips faster. Just set your preferences once and get results tailored to your business travel needs. Plus, get up to 20% off select hotels instantly with member discounts and earn rewards on future travel.
Toby Howell 2:16
Sign up for their free rewards program and start earning on every workday at hotels.com slash morningbrew. That's hotels.com slash morningbrew. Loyalty members 18 plus. Kevin Warsh, the quarterback of the economy, said hut, hut, hike yesterday. Going into the Fed's meeting, the combination of hotter than expected inflation and skyrocketing oil prices meant it was all but certain a rate hike was coming. Markets priced it at a 90% chance and Warsh delivered. The 25 basis point increase in the federal funds rate was the first time the Fed had raised rates since the Biden administration. The decision will not go over well with President Trump, who has loudly called for lower rates in a bid to stimulate the economy.

How are soaring oil prices affecting everyday consumer costs?

Toby Howell 3:00
Interest rates in the United States should be 1% or less, he posted on Truth Social. After starting his tenure without a clear purpose, plan for addressing rising prices, Walsh and the Fed calmed fears that under pressure from the president, he would be too soft on inflation. Yesterday's hike was a 12-0 unanimous decision, the first unanimous Fed decision since May of 2025. The plain fact is that inflation is too high, Walsh said at his press conference. So where does this leave us now? Well, nearly back to where we started when Trump took office in 2025 with decade-high interest rates. The economy has held up well under the strain of those higher rates, but there are significantly more questions now, namely a war in the Middle East putting pressure on prices.
Toby Howell 3:44
At the beginning of the year, oil was $60 a barrel and markets were pricing in three rate cuts. Now, oil prices are above $100 a barrel and the Fed's dot plot is showing the possibility of more hikes to come. It is amazing how quickly things can change.
Neil Freiman 3:59
And it's amazing how things can change not just from the beginning of the year, but from July, which was the last Federal Reserve meeting.

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