Rates, Rights and Rules Reshape a consequential Friday in Washington

Federal Reserve Rate Hike Deepens Affordability Concerns

The economic repercussions of the Federal Reserve’s latest policy shift remained front and center Friday. The central bank had raised its benchmark interest rate by a quarter percentage point earlier in the week, bringing it to roughly 3.9% — its first increase since 2023 — as policymakers sought to contain persistent inflation. Federal Reserve data showed the effective federal funds rate at 3.88% on Thursday, up from 3.63% before the increase.

The move threatens to keep borrowing expensive for households already confronting elevated housing and everyday living costs. The average 30-year fixed mortgage rate reached 6.95%, while the 10-year Treasury yield returned to around 5% during the week. Markets finished Friday mixed: the S&P 500 gained 0.2%, the Nasdaq Composite rose 0.4% and the Dow Jones Industrial Average declined 0.2%. At the same time, unemployment claims fell to 196,000, signaling that layoffs remained relatively limited despite concerns about affordability and inflation.

Trump Moves to Bar Three News Organizations From White House

President Donald Trump said Friday that he was banning CNN, MS NOW and Politico from the White House, citing what he characterized as false and unfavorable reporting. The announcement marked another escalation in the administration’s long-running conflict with news organizations over access and coverage.

CNN and Politico said they would defend their First Amendment rights, with CNN describing government interference with its reporting as unconstitutional. The dispute follows earlier litigation involving restrictions placed on Associated Press journalists after the outlet declined to adopt the administration’s preferred terminology for the Gulf of Mexico. The latest announcement therefore adds another potential legal confrontation over the extent to which a presidential administration can restrict journalists’ access because of their coverage.

Justice Department Says Federal Under-21 Handgun Ban Cannot Be Enforced

The Justice Department’s Office of Legal Counsel issued a major firearms-policy opinion Friday, concluding that the federal government cannot constitutionally enforce restrictions preventing federally licensed dealers from selling handguns or handgun ammunition to otherwise law-abiding adults ages 18 to 20.

The department said the restrictions conflict with the Second Amendment under the Supreme Court’s modern firearms jurisprudence, arguing that 18- to 20-year-olds fall within the constitutional protection afforded to “the people.” Federal appeals courts have disagreed over age-based handgun restrictions, and the Supreme Court has not definitively resolved the constitutionality of this particular federal law under its current Second Amendment framework. Gun-control organizations criticized the administration’s conclusion.

Judge Orders Restoration of $7 Billion Solar Program

A federal judge in Rhode Island ruled Friday that the Trump administration unlawfully terminated the $7 billion Solar for All grant program, handing environmental groups and clean-energy advocates a significant legal victory. U.S. District Judge Mary McElroy concluded that the Environmental Protection Agency exceeded its authority when it canceled grants previously awarded through the program.

Created through the Inflation Reduction Act during the Biden administration, Solar for All directed federal funding toward states, tribes, municipalities and nonprofit organizations to expand access to solar energy, particularly for lower-income communities. The EPA said it was reviewing the decision and considering an appeal. The ruling adds to a broader series of court battles over the Trump administration’s authority to halt or redirect spending previously authorized by Congress.

Trump Extends H-1B Restrictions for Another Year

Trump also extended restrictions on the H-1B high-skilled worker visa program for an additional year. Under the renewed policy, entry is restricted for certain H-1B workers whose petitions are not accompanied by a $100,000 payment, subject to national-interest exceptions determined by the Department of Homeland Security. The restrictions are now set to continue into September 2027.

The White House argues that the policy discourages companies from using the visa system to obtain lower-paid foreign labor while prioritizing higher-skilled and higher-paid workers. According to administration figures, registrations from major IT staffing and outsourcing companies have fallen sharply since the restrictions were introduced in 2025. The administration also pointed to a larger share of registrations involving workers with advanced degrees and higher wage levels. Those figures form part of the administration’s justification for continuing the policy as further H-1B regulatory changes proceed.

Looking Ahead

The consequences of Friday’s developments are likely to extend well beyond the weekend. Investors and households will watch for evidence that higher interest rates are bringing inflation under control without significantly weakening employment, while mortgage and Treasury rates remain important indicators of financial pressure.

In Washington, legal questions surrounding White House press access, federal gun restrictions and the Solar for All program could produce further litigation. The administration’s extended H-1B restrictions will also remain under scrutiny from employers, workers and immigration advocates. Meanwhile, early voting for the 2026 midterm elections has begun in Virginia, with additional absentee voting underway in several states, placing the economy, federal policy and the balance of power in Congress increasingly at the center of the national conversation.