The Federal Reserve cut interest rates for the first time in four years on Wednesday. Monetary policymakers kicked off their first easing campaign since the onset of the COVID-19 pandemic by lowering the benchmark federal funds rate by 50 basis points, to a range of between 4.75 percent and 5 percent.

The decision affects interest rates on credit cards, auto loans, mortgages, and other financial products, as well as savings accounts.

The central bank’s decision to drastically lower interest rates just ahead of November’s presidential election is expected to draw some criticism. Former President Donald Trump, for example, told Bloomberg in May that the Fed’s move to lower rates is “something that they know they shouldn’t be doing” so close to an election. However, investors had widely expected that the central bank would start the new cycle in an aggressive manner. Read the full story here›

The House failed to pass a temporary spending fix on Wednesday that would have forestalled a government shutdown. Fourteen Republicans voted against their own party’s measure, which would have extended the government funding deadline by six months. Three Democrats supported the bill. Two members voted “present.” The final vote: 202–220.

Aside from punting the funding deadline from Sept. 30 to March 2025, a measure known as a continuing resolution, the bill included the Safeguard American Voter Eligibility (SAVE) Act, which would have required proof of citizenship to register to vote.

Democrats overwhelmingly opposed the plan and have called instead for a three-month stopgap bill with no policy riders, known as a “clean” continuing resolution. They rejected the SAVE Act, arguing it’s an unnecessary measure because existing laws already bar noncitizens from voting. Republican objections to the spending plan came from various camps. Read the full story here›

Back in 2015, Xi Jinping promised America he would not militarize the artificial islands that Beijing built in the South China Sea. Many in the international community believed him. Fast forward, these islands are fortified with missile arsenals, aircraft hangars, radar systems, and other military facilities. Subi Reef is larger than Pearl Harbor.

Now China is trying to take control of Second Thomas Shoal, and more recently, the oil-rich Sabina Shoal near the Philippines. Chinese vessels have been found swarming and ramming Philippine ships, attacking them with water cannons, and injuring multiple Filipino sailors. The Philippines has a mutual defense treaty with the United States, but to the dismay of the Filipinos, the U.S. has been reluctant to get involved.

In a recent American Thought Leaders episode with our colleague Jan Jekielek, retired U.S. Marine Colonel Grant Newsham breaks down the Chinese regime’s decadeslong strategy to gain control of the South China Sea. Watch the whole interview here›

How do you like our new sections? Tell us what you think here.