AP News in Brief at 11:04 p.m. EDT

Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut

WASHINGTON (AP) — The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation, and the central bank signaled another rate hike could occur later this year.

The quarter-point increase lifts the Fed’s key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards. In a set of quarterly projections, the Fed also signaled its rate-setting committee could raise it a second time to 4.1%.

The move comes as Americans are already struggling with high costs for groceries, gas and housing. Affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.

It adds another potentially dicey economic variable for Republicans and President Donald Trump, who blasted the decision Wednesday and accused the Fed’s top policymakers of trying to hurt him politically.

Chair Kevin Warsh, who was nominated by Trump, emphasized after the announcement that the economy has shown signs of gathering speed since the central bank decided to keep rates unchanged in late July. Inflation has also remained stubbornly above the Fed’s 2% target, and he noted there is little sign it is cooling.

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Fed rate hike likely means more expensive credit cards and mortgages, but savers may rejoice

WASHINGTON (AP) — The Federal Reserve just raised the cost of money — bad news for borrowers, good news for savers.

The Fed increased its benchmark interest rate Wednesday by a quarter-point, the first rate hike since the summer of 2023. The hike will likely make it even costlier to borrow for homes, autos and other purchases. But if you’ve been socking money away, you’ll probably earn a bit more interest on your savings.

The increase boosts the Fed’s target rate to a range of 3.75% to 4.00%.

Here’s what to know:

The short answer: inflation.

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House approves sweeping Russia sanctions bill, sending it to Trump

WASHINGTON (AP) — The House on Wednesday passed a broad package of sanctions targeting Russian officials and key pillars of its economy as lawmakers look to deprive President Vladimir Putin of the financial resources needed to wage the war against Ukraine.

The bill is named after the late Sen. Lindsey Graham of South Carolina, who spent more than a year negotiating it. The measure was approved in a 262-159 vote and now heads to President Donald Trump to be signed into law.

The legislation represents the most ambitious effort to support Ukraine since Trump’s return to the White House and would break nearly two years of relative gridlock on the issue following a 2024 emergency aid package. Ukrainian President Volodymyr Zelenskyy has been pushing for the bill’s passage and made a direct appeal to senators shortly before they passed it last month.

The measure sanctions Russian officials, banks and a shadow fleet of tankers that keeps Russian energy moving. It also directs Trump to impose up to 100% tariffs on the top five importers of Russian oil or natural gas, with an exception for countries that import less than 15% of Russia’s natural gas exports and have taken significant steps to reduce those imports.

“These countries have a choice to make about whether they will continue to sustain Putin’s aggression,” said Rep. Michael McCaul, R-Texas.

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Fencing goes up around the main Kennedy Center building after Trump-aligned board votes to close it

WASHINGTON (AP) — Fencing went up Wednesday around the main Kennedy Center building, a day after the Trump-aligned board voted to close most of the performing arts center for repairs. A Democratic congresswoman who is a trustee quickly sought an emergency court hearing to prevent what she called the “unlawful closing.”

The board’s vote on Tuesday came after a federal judge blocked the institution from returning President Donald Trump’s name to the building.

The Republican president had said in a social media post that the closure was needed for safety repairs. But he said the repairs, which Congress has allocated $257 million to cover, would only happen if the board was permitted to move forward with plans to add his name to the building.

Activists who have opposed the closure said there has been no vehicle or pedestrian access to the building Wednesday. An Associated Press reporter who approached the main building was told by a security guard that it was closed.

Rep. Joyce Beatty, an Ohio Democrat and an ex officio member of the Kennedy Center board, requested an emergency court hearing Wednesday regarding what she called Trump’s “unlawful closure of the Kennedy Center.” Beatty has led efforts to block Trump’s name from being added to the building, and had a verbal confrontation with Trump Tuesday during a virtual board meeting.

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Driver arrested in a bus collision that happened before a deadly news helicopter crash in LA

LOS ANGELES (AP) — A motorist was arrested on murder charges after authorities say she slammed her SUV into a city bus in Los Angeles, killing at least two people and injuring six others in a prelude to a second deadly tragedy: the fiery crash of a TV news helicopter that was covering the collision.

Bailee Lynn Rios, 36, of Simi Valley, was arrested Tuesday night and was being held at a Los Angeles jail with bail set at $4 million, police said Wednesday. The case is under review by the district attorney’s office, which will decide whether to file the charges in court or pursue different ones. Information on a lawyer who could speak on her behalf was not immediately available.

The helicopter, which was used by NBC and Telemundo, crashed about two hours after police say Rios drove her 2004 Ford Expedition the wrong way down a busy avenue, ran a red light and struck a vehicle before hitting the bus. One passenger was fully ejected from the bus and another was partially ejected, police said.

Rios’ mother, Cindy Rios, said she was shocked and saddened by the string of events. She said she had not spoken to Bailee Lynn since her arrest and had not been contacted by law enforcement.

“The fact that my daughter was involved and was the cause of it is just extremely disturbing,” Cindy Rios told The Associated Press in a phone interview Wednesday. “If anything, I’m sorry for the other families … My daughter’s alive. People lost their lives.”

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Trump and Whatley double down on the administration’s record in North Carolina Senate contest

GASTONIA, North Carolina (AP) — President Donald Trump tested his midterm campaign appeal Wednesday in North Carolina as he tries to help his handpicked Republican Senate hopeful and former national party chairman Michael Whatley shore up his campaign against Democratic former Gov. Roy Cooper.

The president and Whatley embraced each other — and offered withering attacks on Cooper — in Trump’s first campaign rally since his unusual midterm convention in Dallas. The president, despite voter frustrations over the Iran war and his economic leadership, has promised dozens more trips in the coming weeks.

“In this election, I’m asking you to pretend I’m on the ballot just one more time,” Trump said.

He also defended his economic leadership, acknowledging that gas prices are “a little higher” because of his war in Iran but argued that “it’s a very inexpensive price to pay for what we’ve done.” Stopping Iran from obtaining a nuclear weapon, he said, would be worth the cost “even if it was a lot more.”

Trump’s involvement in midterm races creates a balancing act for Republicans like Whatley, who must maximize support from the president’s core supporters without alienating other voters who’ve soured on the administration amid inflation and the Iran war.

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House holds billionaire Leon Black in contempt of Congress over Epstein investigation

WASHINGTON (AP) — The House approved a resolution Wednesday holding billionaire Leon Black in contempt of Congress, referring the matter to the Department of Justice after he defied the Oversight Committee’s subpoenas in its investigation into disgraced financier Jeffrey Epstein.

The action was swift, and without a formal vote, and now leaves it to the Justice Department to decide whether to seek criminal prosecution. Black has refused to respond to the subpoenas’ requests to appear and to turn over any potential nondisclosure agreements involving the investigation into Epstein.

Republicans and Democrats from the Oversight Committee joined in a bipartisan effort to advance the resolution forward.

“No one is above the law,” Rep. James Comer, R-Ky., the Oversight Committee chairman, said in a statement. “We will continue to seek transparency for the American people and justice for survivors in our investigation of the federal government’s handling of the Jeffrey Epstein and Ghislaine Maxwell criminal cases.”

California Rep. Robert Garcia, the panel’s top Democrat, called the vote “an important step towards justice and accountability.”

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AP exclusive: Change in human trafficking policy could make some minors easier to deport

The Trump administration has ordered caregivers for migrant children to stop reporting human trafficking concerns directly to the office created to help victims, a change that critics say could make some vulnerable minors easier to deport.

The directive, in a Sept. 10 memo reviewed by The Associated Press, could mean that some victims would be denied services and face tougher odds of obtaining asylum and visas allowing them to stay in the United States.

“This is going to harm children,” said Jean Bruggeman, co-executive director of Freedom Network USA, a coalition that advocates for human trafficking survivors. “This makes it more likely they will be deported before they get the services they need and put back into harm’s way.”

The order added another plank to the Trump administration’s hard-line immigration agenda that has forged the most restrictive policies toward immigrants in more than a generation. Some of those efforts have been stopped by courts but many others have taken root.

The memo said the change would “streamline the reporting, tracking and referral of trafficking-related concerns.” An administration statement said the change was an effort to reduce the high number of claims that did not rise to the level of criminal human trafficking but nonetheless triggered the award of benefits and relief.

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Saudis seek allies’ help as missile defenses run low in fight with Houthis, officials say

CAIRO (AP) — Saudi Arabia is running low on missile interceptors and has turned to regional and Western allies for assistance as its standoff with Houthi rebels in Yemen drags on, two regional officials said Wednesday.

The officials said the Saudis have asked France, Britain, Pakistan and Egypt to deploy air-defense support to the region to help defend against missiles and drones fired by Houthis and other Iran-backed groups.

The outreach was initiated because Saudi Arabia’s main ally and arms supplier, the United States, has seen its own stock of interceptors dwindle over the course of a six-month war with Iran, one official said. Both officials spoke on condition of anonymity because they were not authorized to brief the media.

Saudi officials did not immediately respond to a request seeking comment.

The fighting between Saudi Arabia and the Houthis is the latest front to erupt as a result of the Iran war. On Wednesday, Saudi Arabia accused the Houthis of trying to attack Islam’s holiest city with a drone; the region responded with condemnation but no sign of military support.

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The psychedelic pop artist Peter Max has died at 88, his son says

NEW YORK (AP) — Peter Max, whose colorful, psychedelic pop art expressed the optimism of the “flower power” movement of the 1960s and graced everything from postage stamps to a cruise ship, has died at 88, his son said in a written statement Wednesday.

Max died on Monday, the statement said. No cause was given, but he had been suffering from advanced dementia.

Max began his career in graphic design in the 1960s, and his swirly, colorful, instantly recognizable designs epitomized the era’s “flower power” art. But thanks to his prolific output and fun, accessible style, Max’s work remained popular well into the 21st century.

Max was the official artist for the Olympics, the Super Bowl, the Indianapolis 500, the World Cup, the World Series and many other events. His art appeared on a Boeing 777 airplane and a Norwegian Cruise Line ship. His portrait subjects ranged from U.S. presidents to Taylor Swift.

But in his first flush of success in the late 1960s and early 1970s, his murallike tableaus of flowers, the cosmos and cartoonish figures — all in vivid colors like turquoise, orange and neon green — seemed to be everywhere. Dorm room walls were plastered with his posters. Household furnishings like clocks and bedspreads sported his designs.