Today in One Sentence. The Federal Reserve raised interest rates for the first time since 2023 and signaled that another hike could come this year as inflation remains above the Fed’s 2% target; the Trump administration paid federal employees $9.5 billion not to work during 2025 as part of the DOGE effort to cut costs by shrinking the government; the House voted for a third time to direct Trump to end the war in Iran; Republican Rep. Thomas Massie introduced eight articles of impeachment against Defense Secretary Pete Hegseth; and House Speaker Mike Johnson canceled votes and sent lawmakers home, delaying the vote on impeaching Hegseth until after the November elections.

1/ The Federal Reserve raised interest rates for the first time since 2023 and signaled that another hike could come this year as inflation remains above the Fed’s 2% target. The unanimous quarter-point increase lifted the benchmark rate to a range of 3.75% to 4%. Fed Chair Kevin Warsh warned that “the plain fact is that inflation is too high and has been for too long,” adding that inflation hadn’t improved enough to justify holding rates steady. Trump, meanwhile, demanded that rates be cut to “1%, or less” and that the Fed “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” (CNBC / Bloomberg / New York Times / Wall Street Journal / Associated Press / Washington Post / Politico)

2/ The Trump administration paid federal employees $9.5 billion not to work during 2025 as part of the DOGE effort to cut costs by shrinking the government. The Government Accountability Office estimated that $6.7 billion came from the deferred resignation program, which allowed nearly 140,000 federal workers to stop working while continuing to receive pay and benefits through September before resigning or retiring. The Office of Personnel Management called the $9.5 billion a “one-time expense” and claimed that the workforce reductions will save taxpayers $40 billion a year. The so-called Department of Government Efficiency’s goal was to cut government spending by $1 trillion. (Politico / NBC News / CNN / ABC News / New York Times)

  • The Trump administration cut, froze, or delayed up to $177 billion in federal grants that affected all 50 states and Washington, D.C. The $177 billion amount represents nearly 10% of federal discretionary spending. (Associated Press)

3/ The House voted for a third time to direct Trump to end the war in Iran. Seven Republicans joined Democrats in support of the resolution, which directs the Trump administration to “remove United States Armed Forces from hostilities against the Islamic Republic of Iran” except for personnel needed to defend U.S. or allied bases in the Middle East. However, it’s unclear whether the Senate will take up the measure before the midterms. (Associated Press / New York Times / Washington Post / CBS News / CNN / Fox News / New York Post)

4/ Republican Rep. Thomas Massie introduced eight articles of impeachment against Defense Secretary Pete Hegseth. Massie accused Hegseth of defying Congress and illegally continuing the U.S. war in Iran without congressional authorization, allowing an “unlawful war” to continue. He also accused Hegseth of ignoring laws to minimize civilian casualties, ordering extrajudicial killings, retaliating against Democratic Sen. Mark Kelly for criticizing military orders, “kidnapping a sovereign leader” in Venezuela, and waging an unlawful war in Yemen. “In all of this, Secretary Hegseth has acted in a manner contrary to his trust as Secretary of Defense,” Massie said on the House floor. The Pentagon, meanwhile, defended Hegseth as a “transformative leader” and maintained that the “entire Department is unified behind the Secretary’s vision.” (Axios / NPR / Washington Post / ABC News / Politico / Reuters / CBS News / The Guardian / The Hill)

5/ House Speaker Mike Johnson canceled votes and sent lawmakers home, delaying the vote on impeaching Defense Secretary Pete Hegseth until after the November elections. By sending lawmakers home a day early for its planned seven-week preelection recess, it pushed action on Rep. Thomas Massie’s impeachment resolution until lawmakers return Nov. 9. Massie’s resolution to impeach Hegseth was “privileged,” meaning the House would was required to act on it no later than Thursday. Johnson denied that the schedule change was to avoid the Hegseth vote, called the impeachment effort a “publicity stunt,” and said it would be tabled when the House returns. (NBC News / CNN / Washington Post / Politico / New Republic)

The 2026 midterms are in 48 days; the 2028 presidential election is in 783 days.