New Fed Chair Kevin Warsh announced yesterday that the Fed voted unanimously to hold interest rates steady in the 3.50%–3.75% range. But things might not stay steady for long. Even though Warsh was nominated by President Trump with an expectation that he would lower interest rates quickly, the central bank signaled that rates might actually go up this year.

A lot has changed since Warsh was nominated: Since he was chosen as the new chair by President Trump in February, the war in Iran turned inflation red-hot. This led to Trump telling Warsh in May to “do your own thing”...and that thing was keeping rates the same (for now).

Now, rate hikes seem more likely: Yesterday, nine of 19 officials projected a rate hike coming this year after none did so in March. That increased the odds of two rate hikes in 2026 from 17% on Tuesday to 37% yesterday, per CME Group, and set markets tumbling following Warsh’s afternoon press conference.

Warsh wants other changes

While rates are not changing right away, how the Fed gathers and interprets economic data and how extensively it communicates with the public will receive deep examination:

• Warsh is forming five task forces to look at Fed operations. These committees will examine communications, economic data that relies on “old-fashioned survey methods,” and artificial intelligence’s potential impact on growth without heating up inflation.
• The new chair broke from past practices and abstained from offering his input on a “dot plot” rate forecast for the rest of the year, leaving forward guidance out of the report.
• When asked about the central bank’s long-held goal of 2% inflation, Warsh said it didn’t need to be revisited until after it was reached.

There was some good economic news: He concluded his first Q&A with reporters by saying Fed officials see labor markets as stable—unemployment has held at 4.3% for three straight months as of May—with some saying they were “trending better than that.”—DL

Trump scuttles quick confirmation of his national intelligence pick. The Senate was scheduled to hold a confirmation hearing yesterday for former Securities and Exchange Commission head Jay Clayton. But President Trump—who nominated Clayton after his interim choice for the role, Bill Pulte, proved controversial—pulled the plug on that hours before it was slated to happen. In a Truth Social post, Trump said there’d be no hearing until Clayton’s replacement as a prosecutor was confirmed. Clayton’s nomination had paved the way for the renewal of FISA surveillance powers, which Democrats and some Republicans objected to with Pulte in the role. But Trump’s post said he wouldn’t sign off on the FISA extension unless lawmakers also approved an unrelated voting bill he wants passed.

Luigi Mangione to use psychiatric defense at state murder trial. Mangione’s attorneys plan to claim he was suffering from extreme emotional disturbance when he fatally shot UnitedHealthcare CEO Brian Thompson on the street in New York City in December 2024. Even if a jury accepts that defense (which is not the same as an insanity defense), it wouldn’t keep Mangione out of prison, though it could mean he would serve 25 years rather than a life sentence if he is found guilty. The state trial is scheduled to begin on Sept. 8, and Mangione is also facing a federal trial where this defense is not available.

Allbirds ditches its name after pivoting to AI. Underscoring its recent abrupt shift from making the sneakers worn by tech workers to focusing on actual AI tech, Allbirds rebranded itself yesterday as Smartbird Inc. (after its previous change to NewBird AI in April). It also tapped Nadia Carlsten, who formerly headed a Danish AI infrastructure group, as its new CEO. The move helps put shoes in the rearview mirror with the sale of its Allbirds brand and footwear assets now complete. And Carlsten is not looking back: “I’m more of a high heels person myself,” Carlsten told Business Insider. “I’m blissfully unaware of all things Allbirds.” The news sent the former footwear company’s stock up 39% yesterday.—AR

Yesterday, the US officially released the “memorandum of understanding” reached with Iran, a 14-point list of provisions that President Trump and Iranian President Masoud Pezeshkian also electronically signed yesterday. The document is expected to kick off negotiations on a final settlement in Switzerland tomorrow.

In exchange for Iran reopening the Strait of Hormuz and pledging not to procure or develop nuclear weapons, the agreement outlines a number of economic benefits:

• It establishes a $300 billion fund to help rebuild the country, though President Trump said the US would not contribute to it.
• The US will waive all sanctions on Iran and unfreeze funds if the country meets the US’ nuclear terms.
• In what’s viewed as a big win for Iran, it is allowed to sell oil immediately.

Trump said he was motivated to make a deal to avoid being compared to Herbert Hoover, who was president during the 1929 stock market crash that preceded the Great Depression. “I didn’t want to see an economic catastrophe,” Trump said.

Iran and the US have 60 days to finalize negotiations, which will likely focus on Iran’s nuclear program in the long term.

Looking ahead: President Trump told the press that he may pass responsibility for the deal to Vice President JD Vance, saying, “If it works out, I’m going to take the credit. If it doesn’t work out, I’m blaming JD.”—MM

It sounds like any kidult’s dream: This week, Carvana unveiled its first “new-car playground,” a salespersonless pseudo-dealership in Dallas where it’ll test out a more relaxed method of car-selling than the auto industry is used to. True to Carvana’s roots, all purchases still have to happen online.

There are no monkey bars, just themed outdoor areas for each car brand. Jeeps perch on off-road displays, Dodges have fake racetracks, and Chrysler minivans guard a soccer net. One of the biggest differences from traditional car-buying, though, is that nobody is supposed to follow you around:

• Customers can scan QR codes to get information about cars and request test drives.
• Staff is there to answer questions, but they’re not salespeople—they earn hourly wages and no commission.

This model could be a win-win. Most customers prefer a blend of online and in-person interactions when buying a car, according to recent Cox Automotive data. And for Carvana, payroll at playground locations could be far below typical dealerships, an industry expert told the Wall Street Journal.

Carvana is making inroads. After building its business on used-car sales, the company has purchased seven Stellantis-franchised dealerships since February 2025—one of which became Stellantis’s top-selling US location. More new-vehicle sales will also help Carvana’s loan business, which accounts for most of its profits.—ML

The online world can be a beautiful yet confusing series of tubes. On Thursdays, the Brew’s Molly Liebergall untangles them for you.

When you use something that isn’t yours, it’s under the cover of darkness while your roommate is away. When Kim Kardashian does it to a racecar driver in broad daylight, it becomes a viral moment.

What happened: At the Monaco Grand Prix earlier this month, the reality TV star took a towel that was set aside for the race winner—19-year-old Mercedes driver Kimi Antonelli—dabbed her forehead sweat, and walked away with the cloth in hand. A clip of the moment picked up steam online, so the F1 world put its Kris Jenner hat on and capitalized:

• Antonelli and Mercedes-AMG responded a few days later with videos of Antonelli jokingly asking if anyone had seen his towel.
• Then Kardashian resolved the friendly back-and-forth by gifting Antonelli a new towel embroidered with the words “To Kimi from Kim.” In a clip posted by F1, a Mercedes team member is heard saying, “This is actually from her!”

We’re not saying that Kardashian knows witchcraft, but after this incident, dubbed “Towelgate,” Antonelli failed to finish in last weekend’s Barcelona-Catalunya Grand Prix. Meanwhile, her boyfriend, Ferrari racer Lewis Hamilton, took first place after finishing second to Antonelli in Monaco.—ML