The Fed raises interest rates. And, EU proposes Canada become an 'associate member'

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The Federal Reserve unanimously voted to raise interest rates yesterday for the first time in more than three years, increasing the benchmark rate by a quarter percentage point to a range of 3.75% to 4%. The hike makes it more expensive to borrow money, grow a business or carry a credit card balance. Inflation has risen amid the war in Iran, driving up the price of gasoline and diesel fuel. While higher interest rates won't immediately lower prices, they demonstrate the Fed's commitment to restoring price stability , despite repeated pressure from President Trump to lower interest rates.

Federal Reserve Chair Kevin Warsh speaks during a news conference at Federal Reserve Headquarters on July 29, 2026 in Washington, D.C. Win McNamee/Getty Images hide caption

Rising gas prices have sparked protests around the world , including in Syria, the Philippines and Indonesia. The price surge comes as Saudi Arabia, the world's largest oil exporter, faces a renewed war in Yemen against the Iranian-backed Houthis.

The European Union has proposed making Canada its first-ever "associate member." European Commission President Ursula von der Leyen announced the proposal for the new model of membership during her annual speech to the EU Parliament in Strasbourg, France. In his own address to the EU Parliament this morning, Canadian Prime Minister Mark Carney emphasized how much the EU and Canada have in common and said that "Europe and Canada are stronger together."

The CLARITY Act would set a regulatory framework for the crypto sector for the first time in the U.S. But whether it can clear a key procedural hurdle in the Senate remains uncertain. Karen Bleier/AFP via Getty Images hide caption

A bill championed by crypto executives and President Trump failed to pass a Senate vote this week. The Clarity Act would have established the first regulations for the crypto sector in U.S. history. A version of the bill passed the House last year. Now, the bill's future is uncertain as the crypto industry and its backers must weigh their options for another attempt. Here are some key things to know about the Clarity Act :

Technicians connect the inner and outer segments of NASA's Nancy Grace Roman Space Telescope in 2025 at NASA's Goddard Space Flight Center in Greenbelt, Md. Jolearra Tshiteya/NASA via AP hide caption