👋🏾 HI, HEY, HELLO! Welcome back to Congress Nerd Daily. I hope today was everything for you. The midterms are in 6 days.
FIRST THINGS FIRST
The Federal Reserve kept interest rates unchanged this afternoon, leaving borrowing costs elevated just six days before voters decide control of Congress.
The central bank voted 10–2 to keep its benchmark rate between 3.75% and 4%, after hiking it by a quarter point in last month. Fed officials Lisa Cook and Beth Hammack wanted another hike, underscoring the pressure policymakers face as inflation remains stubbornly high.
The economy is still growing at a healthy clip, supported by consumer spending, business investment and a relatively stable labor market. But that strength hasn’t brought much relief to households dealing with expensive mortgages, credit card debt and higher energy bills.
Republicans head into Election Day defending their economic record, while Democrats make affordability central to their case for taking back Congress. This afternoon’s decision offers little immediate relief to voters who may hear the economy is doing well but don’t necessarily feel it in their monthly budgets.
The Fed left its December options open, meaning another rate hike remains possible. For now, Americans will head to the polls with borrowing costs still high and inflation still complicating the economic picture.
VIEW FROM THE HILL
President Donald Trump launched a war with Iran eight months ago today that he suggested would be over in a matter of weeks. Now, with the midterm elections six days away, the fighting continues, American taxpayers have spent more than $47 billion on military operations and Trump is once again suggesting the end is near.
Democrats now face the question of what they can do if voters hand them control of the House next Tuesday.
Antjuan Seawright, a Democratic strategist, told me that a Democratic majority would seek to hold Republicans accountable for the war’s economic consequences, pursue legislation to cut costs and challenge Trump’s authority to continue the conflict.
He also sees an obligation for Democrats to deliver on the expectations they’re setting with voters.
“Trust is a currency you have to obviously maintain and it’s the one currency you cannot afford politically to gamble away,” Seawright said. “And so you have to live up to the promise that got you the trust.”
The war’s price tag has become a political problem in its own right. Pentagon estimates put military spending at more than $47 billion through mid-October, with additional costs expected to repair damaged American bases and replace depleted weapons. Twenty-one U.S. servicemembers have died.
The economic consequences have reached well beyond the battlefield. Higher fuel prices have raised what Americans pay at the pump and increased the cost of transporting goods. The Congressional Budget Office estimates that continued fighting could cost another $2 billion to $3 billion per month, excluding certain additional expenses.
A House Democrat, speaking on condition of anonymity to discuss internal strategy, told me the war illustrates why the party wants to make government accountability a central priority if it wins the majority.
The member questioned what the conflict has accomplished for American families, jobs, national security or the country’s credibility abroad. The lawmaker also pointed to diesel prices, which affect the cost of moving everything from groceries to clothing.
“We will be uncovering the grift and exposing the lies, to show what can and should be done to help the American people,” the member said. “Restoring some faith and integrity into your government is making a material difference.”
