The Federal Reserve is expected to raise interest rates today for the first t...
The Iran War pushed inflation higher, how much more expensive could borrow and get. I'm Le LaFaldin, that's a Martinez and this is up first from NPR News.
To new reports, put the cost of the Iran War above $30 billion.
They also detailed the damage to US bases from Iranian attacks and shortages of key weapons. What do their reports reveal that the Pentagon has not? And the Kennedy Center board says the historic arts complex and dire condition and voted to shut it down. The decision came just after a judge said President Trump's name cannot go on the building and Trump says he won't make renovations unless that changes.
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The Federal Reserve is expected to raise interest rates today.
Prices have been climbing faster than wages in recent months, so the typical worker has been losing
ground. Inflation has been higher than the central bank wants it to be for a long time. NPR's Scott Horsley joins us now. Scott, it's been what more than three years since the Fed has raised interest rates. Why do it now? A, the U.S. War with Iran has rekindled inflation, pushing oil and gasoline prices higher. The congressional budget office warns the wars likely to keep putting upward pressure on prices
into next year. Just today, Triple A said the price of diesel had jumped to another record high, $6.31 a gallon. And Fed Chairman Kevin Wars renewed his promise to get inflation under control when he spoke last month in Jackson Hole, Wyoming. Now while higher interest rates
“won't automatically bring lower prices at the gas pump, raising rates is the Fed's primary”
tool for fighting inflation. And forecaster Omar Sharif says, if the Fed doesn't use that tool after Wars's hawker speech last month, the Fed risks losing credibility. I just think it's time to either raise rates or just go to the market. We don't plan on raising rates. It doesn't really matter what happens with inflation. We're just going to sit tight. Investors are definitely anticipating that the Fed will deliver on Wars's hawkish comments this
afternoon, odds at market odds of a rate hiker north of 90%. Okay, so that's the answer to why on raising interest rates. Next question, Scott, how high? The Fed is expected to raise its benchmark interest rate by a quarter percentage point today. And then beyond today's meeting, we'll see what happens. The Central Bank has two more meetings on the calendar. This year, it's possible the Fed could push rates higher, especially if inflation remains elevated. But Sharif's expects Wars will
temper any rate hike today with a cautious news conference. So investors don't walk away thinking that additional rate hikes serve necessarily baked in. In addition to the chairman's news conference, we're going to get a series of forecasts this afternoon from the other members of the Fed's rate setting committee indicating where they think interest rates might be going. Back in June, the average Fed policy maker was projecting only one quarter point rate hike this year, followed
by a rate cut next year. We'll see if those forecasts have changed. Now that we've had another burst of energy-related price hikes, those forecasts got how reliable are they? Well, they're not a road map and they're not a promise. They're really just kind of the series of best guesses of where the individual committee members think rates might be going based on their personal views the economy. Obviously wars and tariffs and other events can change those views and thus the
outlook for interest rates. By the way, Chairman Wars will probably not offer a forecast today. He did not make one in June, and he has generally discouraged any kind of forward guidance or things that can tie the Fed's hands and leave policy makers with less room to maneuver. Not all of his colleagues are on the same page, however, Fed Governor Chris Waller spoke at a Reuters event earlier this month. And Waller said he generally doesn't think it's helpful for the Fed to try to
surprise people. If you were the state and transportation department, you were going to close down
Three lanes of a highway.
zone or you can start giving him signs way in advancing. Look, there's construction ahead. I
“think we all would prefer to get the information prior to make better decisions. So we'll see how”
the traffic cones line up this afternoon while the Fed set short term rates longer term interest rates are set in the bond market and they've been moving up and that's making it more expensive for anyone trying to get a loan to buy a house or a car or finance a growing business. That's MPR Scott Horsey. Scott, thanks. You're welcome. All right, Scott. Just mentioned one report showing that the war with Iran drove up prices for consumers in the U.S. Now we turn to new
details about the cost to the government. According to that report and one other, the Iran War has caused damage to U.S. bases, shortages in American weapons and has a price tag well
over $30 billion dollars and climbing. For more, we're joined by MPR National Security
Correspondent Greg Myry Greg, who's responsible for these reports? Yeah, one of them comes from the Congressional Budget Office and the other from the Pentagon's Inspector General and both of these are independent nonpartisan agencies. Both reports detailed the extensive damage to U.S. bases and military equipment like the U.S. Naval Base in Bahrain. And this is something the Pentagon has really not wanted to talk about. The Pentagon Inspector General said the Iranian
strikes damage and destroyed, quote, hundreds of buildings and structures at U.S. bases and listed eight countries in the region where this has happened. Also around 60 U.S. aircraft have been damaged or destroyed. Now about half of these are reaper drones and they cost at least $30
million a piece, but also around a dozen refueling aircraft and several fighter planes. And
“eight, we should remember that in past wars, the Pentagon held multiple briefings every week.”
We might get this kind of information over time, but briefings have been extremely rare under defense secretary Pete Higgs-F. You've heard a lot of estimates about the cost of the war. Any more concrete figures though? Yeah, these are giving us more detail, but they tend to be pretty much along the lines of what we've been hearing. The Congressional Budget Office put the costs so far at $38 billion. The Pentagon Inspector General came up with $33 billion and these numbers
are just above and below the $37 billion that Higgs-F gave back in July. And all three are actually using slightly different cutoff dates, so they do seem to be pretty much in the same ballpark. Now, they do not count the cost of rebuilding these damaged U.S. bases. The CBO said it tried to get this information, but the Pentagon did not respond. And the Congressional Budget Office says if the war continues at roughly the same pace as the past few months with a large U.S. presence
in periodic fighting with Iran, this is going to add an additional $2 to $3 billion in monthly cost.
Now, does the Trump administration accept those findings? Yeah, they really haven't said that much since the reports came out. The President did take to true social before they came out, and he said that the U.S. was, quote, producing more exquisite and elite weapons that at any time in our history. But both these reports noted that the U.S. was using many Patriot Interceptor missiles that shoot down Iranian ballistic missiles. The CBO says the military is burned up to
two-thirds of the Patriots, and it could take up to five years to replace them. The U.S. still has
“large stockpiles that many weapons, but the war has put a strain on some important munitions,”
particularly high-end defensive weapons. By the way, Greg, one more thing. I mean, how is the U.S. funding this war? Well, the Trump administration is asking for an additional $67 billion to cover the Iran war and pay for what it says or other urgent military needs. Now, Congress hasn't acted, and it may not act before the November elections. Is our colleagues Scott Horsley noted a moment ago, inflation remains elevated, and the Congressional Budget Office says the Iran war is one key
reason, and it's also predicting that inflation will be about a half-personage point higher up until the first part of next year than it would have been without the war. All right, that's NPR's Greg. My regreg thanks a lot. Sure thing, eh? The Board of the Kennedy Center has voted to shut the arts complex down. Shortly before that vote on Tuesday, a federal judge ruled that the Board cannot add President Trump's name to the exterior of the building or its grounds, and there are
still a lot of questions about what happens next. Enjoying us to help walk us through these questions is NPR culture correspondent Anastasia Silcos, so walk us through the timeline of what
Happened yesterday.
board meetings started at 1230 p.m. There was only one item on the agenda to vote whether or not
“to close the center. The board says the centers in dire circumstances both financially and structurally.”
The board meeting took place by Zoom and a source with close knowledge of the meeting told me about it, but that's not to be identified because this person had not been authorized to speak to the media. This person said there was a very heated back and forth between President Trump, who is now chairman of the center, and represent Joyce Bady, the Democrat from Ohio, who is an ex officio member of the board, and Bady sued Trump and the rest of the board.
Anyway, Trump and Bady got into it and the board voted for the shutdown. Within a couple of hours of
that vote though, Trump had posted about the court ruling on his truth social platform, and he vowed publicly not to go ahead with the renovation unless his name is on the building.
“Yeah, so on that, I mean, how are we supposed to take that? What were we supposed to make about?”
Well, it's hard to know how seriously to take Trump's statement, but immediately Bady's legal team filed that post with Judge Cooper, and as of late yesterday afternoon, Trump and the board had already filed an appeal. All right, so let's assume for the moment that the shutdown doesn't need happen, is that all planned out? At this point, there are honestly more questions unanswered than it answered. We obtained the lengthy memo that the board received over the weekend
prior to the vote. That only addressed structural matters at the center, not programming. For example, the board told Judge Cooper it intends to move to the signature annual fence, the Kennedy Center honors, and the Mark Twain prize somewhere else, where and how it's unclear. The board says
“it will continue to support the National Symphony Orchestra, how that's going to happen is unclear.”
For example, the orchestra has moved its upcoming concerts elsewhere, where's the grain of rehearse, who will pay for it? That's unclear. And it's worth noting that none of the people in the board or in upper management, the Kennedy Center, have that kind of programming experience. Wow, so there's still a lot that we don't know. For sure, last winter, when President Trump started talking publicly about this huge renovation he wanted to put on, I put together a long
list of questions for the Kennedy Center officials. I've still received no answers. For example, will the public know what is being spent and on what? How transparent? Well, the bidding process be? Are there any performing arts experts, people experiencing music, theater, or dance, who will have any oversight or at least be consulted? What happens to the archives of the Kennedy Center? What happens to the valuable artworks and historical artifacts? How's there? Many of those were gifted
to the United States by foreign nations. All of these things are things I will continue to seek answers. All right, the TMPR's Anastasia Seal Press. Thank you very much. Thanks so much for having me. [Music]
And that's up first for Wednesday, September 16th, the May Martinez.
And I'm Leila Falded. Today's episode of Up First was edited by Rafael Nam, Andrew Sussman, Steve Drummond, Mohammed and Bertie C, and Alex Wolfley. It was produced by Ziyad Buch, and the Adhumas, our director, is Christopher Thomas. We get engineering support from that Coleman, our technical director is Carly Strange, and our supervising producer is Michael Lipkin. Join us again tomorrow.
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