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The Federal Reserve on Wednesday took its foot off the brakes and hiked interest rates yet again — taking them to a 22-year high.

Fed Chairman Jerome Powell announced the unanimous decision for a quarter-point hike, raising the benchmark federal-funds rate to a range between 5.25% and 5.5%. 

It marked the 11th increase in the past 12 meetings following last month’s brief pause.

The hike sent the benchmark rate to its highest point since 2001 — and Powell signaled that another increase is possible before the year’s out as officials continue to wrestle with stubbornly-high inflation.

The process of getting inflation back down to 2% has a long way to go,” Powell said at a press conference following the decision.

“We think were going to need to hold, certainly, policy at restrictive levels for some time, and wed be prepared to raise further if we think thats appropriate.

Powell, who initially insisted that inflation was “transitory before it soared to a four-decade high, also proclaimed that Fed staff is no longer forecasting a recession.

“We do have a shot” for inflation to return to target without high levels of job losses, he said.

“So the staff now has a noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession,” he said.

Key measures of inflation remain more than double the Fed’s target, and the economy by many measures, including a low 3.6% unemployment rate, continues to outperform expectations given the rapid increase in interest rates.

Job gains remain “robust,” the Fed said, while it described the economy as growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting. New data on Thursday is expected to report the economy grew at a 1.8% annual pace in the second quarter, according to economists polled by Reuters.

Powell ruled out the possibility of cutting the fed rate this year.

“Well be comfortable cutting rates when were comfortable cutting rates, and that wont be this year,” he said.

Investors took the anticipated quarter-point hike in stride, pushing the Dow into the green for the 13th straight session — it’s best streak since 1987. The S&P 500 and the Nasdaq closed slightly down.

“The forward guidance remains unchanged as the committee leaves the door open to further rate hikes if inflation does not continue to trend lower,” said Kathy Bostjancic, chief economist at Nationwide. “Our view is the Fed is likely done with rate hikes for this cycle since continued easing of inflation will passively lead to tighter policy as the Fed holds the nominal fed funds rate steady into 2024.”

Despite the positive stock run, higher rates mean Americans are in for increased costs when it comes to borrowing funds to purchase homes and cars, which will likely dampen consumer spending.

The cost of credit cards may also remain high, making it more difficult for consumers to pay off their debt.

The average credit card interest rate in the US is currently 24.24%, according to LendingTree — the highest rate since the online loan marketplace began tracking average rates in 2019.

The latest figure is up from the average credit card interest rate of 16% in March 2022, just before the Fed started hiking rates.

Meanwhile, the Consumer Price Index a closely-monitored measure of inflation that tracks changes in the costs of everyday goods and services rose 3% in June versus a year earlier.

Last month’s advance was short of the 4% rise the CPI saw in May compared to the same month in 2022.

In June 2022, inflation peaked at 9.1%.

Policymakers are set to meet three more times by the end of this year, in September, November and December.

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Crypto hacks are a wake-up call for DeFi

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Crypto hacks are a wake-up call for DeFi

Crypto hacks are a wake-up call for DeFi

Crypto hacks underscore the urgent need for CEXs and DeFi to overhaul their security, collaborate on risk management and embrace self-regulation.

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FATF’s crypto checklist hints at the next regulatory crackdown

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FATF’s crypto checklist hints at the next regulatory crackdown

FATF’s crypto checklist hints at the next regulatory crackdown

The FATF is shaping global crypto rules from behind the scenes, with stablecoins and DeFi next in line for scrutiny.

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Kia’s first electric hatchback is here and it has nearly 400 miles range: Meet the EV4 hatch

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Kia's first electric hatchback is here and it has nearly 400 miles range: Meet the EV4 hatch

Who said hatchbacks are going out of style? Kia’s first electric hatchback, the EV4, went on sale in the UK on Monday, offering the longest driving range of any of its EVs to date. Here’s a full breakdown of prices and specs.

Meet the EV4, Kia’s first electric hatchback

After launching the sedan version in Korea in April, the EV4 already took the top spot as the best-selling domestic electric sedan in its second month on the market. It’s already being called a “box office hit.” Now, the new hatch variant is officially on sale.

Kia opened orders for the EV4 hatchback in the UK on Monday, starting from £34,695 ($47,700). The EV4 is Kia’s first crack at an electric hatchback.

With an impressive 388 miles of WLTP driving range, it’s also the longest driving range of any EV Kia has ever produced.

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The hatch is based on the same E-GMP platform as the EV4 sedan and Kia’s other electric vehicles, but it’s custom-tailored for European buyers.

The base EV4 “Air” is available with two battery packs: 58.2 kWh or 81.4 kWh, providing a WLTP driving range of up to 273 miles or 388 miles on a full charge. Kia said it’s the brand’s first electric vehicle offering a range of over 380 miles.

Kia-EV4-first-electric-hatchback
Kia EV4 hatchback GT-Line (Source: Kia)

The sporty “GT-Line” and top-spec “GT-Line S” variants are available exclusively with the extended range (81.4 kWh) battery, which offers a range of 362 miles.

All EV4 hatchback models are powered by a single front motor with 201 bhp (150 kW) and 283 Nm of torque, good for a 0 to 62 mph sprint in 7.5 secs.

Kia's-first-electric-hatchback
Kia EV4 hatchback (Source: Kia)

The interior features a similar setup to Kia’s latest EV models, like the EV3 and EV9, with its new connected car Navigation Cockpit (ccNC) at the center. The setup features dual 12.3″ driver clusters and infotainment screens in a curved panoramic display. An additional 5.3″ touchscreen for climate control is included for easy access to heating and ventilation functions.

Like the EV3, Kia’s electric hatchback will include an AI Assistant, powered by ChatGPT. It will also be the brand’s first vehicle with several entertainment settings, including “Rest mode” and Theatre mode.”

Kia-EV4-first-electric-hatchback-interior
Kia EV4 hatchback interior (Source: Kia)

With all the seats upright, the electric hatch has a boot space of 435 liters, which Kia claims makes it “one of the most practical vehicles in its segment.”

With a length of 4,430 mm, a width of 1,860 mm, and a height of 1,485 mm, the EV4 hatchback is about the size of Kia’s XCreed.

The EV4 hatch can recharge from 10% to 80% in 29 minutes, while the larger battery will take approximately 31 minutes to charge using a 350 kW DC fast charger.

Kia EV4 hatchback trim Starting Price Driving Range
(WLTP)
Air Standard Range £34,695 ($47,700) 273 miles
Air Long Range £37,695 ($51,700) 388 miles
GT-Line £39,395 ($54,000) 362 miles
GT-Line S £43,895 ($60,200) 362 miles
Kia EV4 hatchback prices and range in the UK

Kia opened orders for the new electric hatch on Monday, July 1. It will join the EV3, EV6, and EV9 in the brand’s European lineup. The EV4 hatchback will be built at Kia’s plant in Slovakia to expedite deliveries, which are scheduled to begin in the Fall.

Kia also announced on Monday that a new EV4 Fastback variant will join the lineup, but didn’t offer any additional details. More info, including prices and specs, “will be revealed in due course.” Check back soon for the latest.

What do you think of Kia’s first electric hatchback? Would you buy one in the US? Unfortunately, it’s not likely to make the trip overseas, but we will see the sedan version launch at some point in early 2026. Let us know your thoughts in the comments.

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