Why the US Federal Reserve Raised Interest Rates Again

Thanks, Daniel. This is a big move.

The Federal Reserve raised rates for the first time in more than three years.

How much did it raise them?

By a quarter of a percentage point.

The main rate is now between 3.75 percent and 4 percent.

So the change is small.

But the effect can be wide.

Yes. When rates go up, borrowing gets more expensive.

People with credit card debt may pay more interest.

And that can hit daily life.

It is not just bank figures.

Exactly. Loans for homes and cars can also cost more.

The Fed says it wants prices to come down faster.

What did the chair say about inflation?

Kevin Warsh said inflation is too high.

He said it has been too high for too long.

So the bank is fighting inflation.

Even if borrowing gets harder.

Yes. The Fed has two jobs.

It wants to support jobs and keep prices stable.

What is the wider picture on prices?

Prices had cooled before.

But they rose again.

Last month, inflation was 3.4 percent.

And this came during pressure from President Trump, too?

Yes. He had called for lower rates.

The decision was unanimous, but it went against that demand.

So there is a clear trade-off here.

Yes. Higher rates may slow spending.

Businesses may feel that if fewer people buy big things.

Thanks, Grace.

Syria’s new parliament has made one of its first big legal changes.

Now we go to Jack, our LinguaWire correspondent for politics.

Thanks, Daniel. The parliament voted to abolish an old terrorism court.

It also nullified the legal effects of its rulings.

That is a striking step.

It comes after so many years under the Assad family.

It is. The vote made the abolition official.

The new authorities had already treated the court as defunct.

What kind of court was this?

It was created in 2012.

Under Bashar al-Assad, it was used against thousands of Syrians.

So this is about real cases.

It is not just a new name.

Yes. The rulings are part of the problem.

Some people may now see old rulings challenged.

And there was already another move before this vote?

Yes. In June 2025, President Ahmed al-Sharaa dismissed 67 judges.

He called it the abolished Counter-Terrorism Court.

This seems tied to property too.

It is not only about courts.

That is right. A March 2025 declaration also called for returning confiscated property.

It was part of a wider push to remove unjust rulings.

What concerns were raised before?

The UN Human Rights Committee raised concerns in 2024.

It said the law did not give enough legal protection.

And there is more pressure now in the Kurdish area?

Yes. In the northeast, oil tanker trucks were stranded.

Protests blocked a highway near Tal Tamr.

People are upset about fuel prices.

They are also worried about plans to bring the SDF under central control.

So the new government is facing two hard tests at once.

Yes. It is trying to build one state.

But not everyone agrees on the path.

Thanks, Jack.

Now let’s look at three useful words.

rate

This means the level or price of something. In the story, it was used in “raised interest rates.”

interest

This is the extra money you pay on borrowed money. In the story, it was used in “interest rates.”

borrow

This means to take something for a time and give it back later. In the story, it was used in “borrowing gets more expensive.”

Listen to this sentence from the story: “It was created in 2012.”

We use the passive when the action is important, not the doer.

We form it with be and a past participle.

It was created in 2012.

The court was abolished by the vote.

The legal effects were nullified by parliament.

Repeat after me: was created