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Pound hits one-year high against dollar after UK inflation holds steady

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Pound hits one-year high against dollar after UK inflation holds steady

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The pound hit a one-year high against the dollar on Wednesday after UK inflation figures came in slightly above expectations at 2 per cent for June.

The consumer price data was above analysts’ forecasts of 1.9 per cent and prompted traders to reduce their bets that the Bank of England will lower interest rates from their current 16-year high next month.

But the inflation figure, provided by the Office for National Statistics, remained at the BoE’s target level, which it hit in May for the first time in three years.

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After the data release, investors put the probability of a quarter-point rate cut next month at about a third, having previously been evenly split.

The pound climbed 0.5 per cent to $1.3031, its strongest level against the dollar in a year.

The Monetary Policy Committee has signalled it is getting closer to lowering rates from their current 5.25 per cent. However such a move would hinge on policymakers being confident that underlying price pressures are fully under control.

A key concern has been stubborn services price growth, which is seen as an important gauge of underlying inflation. The latest figures showed services inflation holding steady at 5.7 per cent in June, ahead of analysts’ expectations for a decline to 5.6 per cent.

“It’s the stability of services inflation at 5.7 per cent that’s the blow,” said Paul Dales at Capital Economics. “As a result, the chances of an interest rate cut in August have diminished a bit more.”

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Wednesday’s data marked the final inflation release before the MPC’s August 1 meeting, at which it will announce its latest rate decision.

The higher than expected inflation figure came hours before the King’s Speech, which will lay out the new Labour government’s plans to “take the brakes off Britain” in a bid to spur economic growth.

“It is welcome that inflation is at target, but we know that for families across Britain, prices remain high,” said Darren Jones, chief secretary to the Treasury.

“That is why this government is taking the tough decisions now to fix the foundations so we can rebuild Britain and make every part of Britain better off,” he added.

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Restaurants and hotels were the biggest drivers of inflation in the year to June. Core inflation, which strips out energy and food, was 3.5 per cent, the same rate as in May and in line with analysts’ forecasts.

The BoE described its June decision to hold rates at 5.25 per cent as “finely balanced”, with two of the nine MPC members advocating to reduce rates.

Some other members have since signalled they are on the cusp of backing a rate cut, though the latest economic data may complicate their decision.

Huw Pill, the BoE’s chief economist, said this week that the central bank had made “substantial progress” in its efforts to bring price pressures down, but added that recent indicators had still pointed to “some upside risk”.

The MPC will also look at UK labour market data due to be released on Thursday for a further indication of the strength of the economy.

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“The continued persistence of wage growth and CPI inflation means the MPC will have to proceed only gradually,” said Rob Wood at Pantheon Macroeconomics, “and the uncertainty about underlying inflation pressure means we expect rate-setters to wait until September for their first reduction.”

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Video: Mamdani Allies Sweep New York Primaries

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Video: Mamdani Allies Sweep New York Primaries

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Mamdani Allies Sweep New York Primaries

Mayor Zohran Mamdani’s progressive coalition had a big night on Tuesday. Brad Lander, Darializa Avila Chevalier and Claire Valdez won their Democratic House primaries.

“I see a New York that we can all afford. I see a New York that truly invests in its babies, not bombs.” Reporter: “What’s the first thing you’re looking forward to doing in Congress?” “Well, tomorrow — thank you — I mean, tomorrow morning, you know, I’m going to be back at 26 Federal Plaza doing court watching, and we want to carry that into Congress as well.”

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Mayor Zohran Mamdani’s progressive coalition had a big night on Tuesday. Brad Lander, Darializa Avila Chevalier and Claire Valdez won their Democratic House primaries.

By Julie Yoon

June 24, 2026

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Appeals court allows Trump administration expanded use of speedy deportations

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Appeals court allows Trump administration expanded use of speedy deportations

A massive 826,780-square-foot warehouse sits illuminated Feb. 12, 2026, in the El Paso suburb of Socorro, Texas, that was recently purchased by the U.S. Department of Homeland Security for $122.8 million.

Morgan Lee/AP


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Morgan Lee/AP

A federal appeals court on Tuesday allowed the Trump administration to resume carrying out speedy deportations of undocumented migrants throughout the United States, not just near the border.

A divided three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit threw out a lower court decision that temporarily blocked President Donald Trump’s expanded use of expedited removal. The ruling was a big victory for the Republican administration, which views the expansion of so-called expedited removal as a key tool for carrying out its mass deportation policy.

Expedited removal — quick deportation without a chance to appear before a judge — has previously been applied to migrants arriving by sea or caught at or near the border shortly after crossing.

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In January, Trump expanded its use to undocumented migrants all over the United States. Immigration agents began whisking migrants away from courthouses where they had gone for immigration proceedings and then removing them from the country within days.

“The Trump administration’s push for fast-track deportations will subject people to an unfair and error-prone system,” Anand Balakrishnan, senior staff attorney with the ACLU’s Immigrants’ Rights Project, said in a statement.

Balakrishnan represented plaintiffs in arguments before the appellate panel and said its ruling “undermines the fundamental principle that people receive due process when the government seeks to deport them.”

DC Circuit Judge Justin R. Walker, one of the judges on the panel, said the plaintiffs had not shown the expanded use of expedited removal violated due process rights. Immigrants received notice of removal proceedings and were given a chance to respond, he wrote in his opinion.

Walker and the second judge in the majority, Neomi Rao, were appointed by Trump. The third judge on the panel was appointed by President Barack Obama, a Democrat.

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Walker said there was no requirement that the administration inform immigrants that they can avoid expedited removal if they can show they have been in the United States for more than two years.

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ODNI under Pulte fires 6 staff, sends 45 back to home agencies

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ODNI under Pulte fires 6 staff, sends 45 back to home agencies

Just over 50 career and political intelligence staff at the Office of the Director of National Intelligence have been removed from their roles since Bill Pulte became the agency’s acting director, Friday.

Six career and political intelligence staff were terminated and 45 were sent back to their home agencies, according to three sources familiar with the personnel moves.

Pulte has been asking deputies and other directors for suggestions about cuts. Some of the ODNI deputies pushed for more cuts, but Pulte said that the 51 was enough for now, one of the sources said.

One source characterized the cuts as thoughtful and methodical. No staffers have been removed from the counterterrorism group.

No further firings are planned for now, two of the sources said.

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The cuts follow hundreds of staff reductions last year by former Director of National Intelligence Tulsi Gabbard, who stepped down last week. Last year’s planned downsizing sought to bring the office’s headcount from 2,000 to around 1,300.

President Trump has pushed for further cuts, directing Pulte to “execute the immediate and needed downsizing of the office” in a Truth Social post earlier this month.

The office is charged with overseeing the country’s intelligence agencies and helping them coordinate with each other. It was created in response to the Sept. 11, 2001, terrorist attacks, which investigators widely believe was preceded by a failure of intelligence agencies to share information. 

Since then, Gabbard and some lawmakers have argued the ODNI has become bloated and has added more bureaucracy to the intelligence community — worsening a problem it was created in part to resolve. 

Republican Sen. Tom Cotton of Arkansas, who chairs the Senate Intelligence Committee, said earlier this month the office has “grown far beyond its original mandate.”  Many of the office’s staff hail from other intelligence agencies but have been detailed to ODNI, and Cotton argued large numbers of them should be returned to their “home agencies.”

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Sen. Mark Warner and Rep. Jim Himes, the top Democrats on the Senate and House intelligence panels, warned Pulte against making large-scale staff cuts, calling it an inappropriate course of action for an acting official without national security experience.

“While there is room to consider responsible reductions to ODNI’s workforce, any large cuts would follow on a substantial downsizing that has already occurred in 2025 and risk jeopardizing the mission of an organization explicitly created after 9/11 to prevent any future such terrorist attack,” the two Democrats wrote in a joint statement.

After Gabbard announced in May that she would resign from the post, Mr. Trump said he would install Pulte, a housing finance official, as acting director of national intelligence. He later nominated Jay Clayton, the top federal prosecutor in Manhattan, to serve as Senate-confirmed director.

Mr. Trump’s pick for acting director of national intelligence, who assumed the role on Friday, has sparked intense pushback in Congress. Democrats, and some Republicans, questioned the selection due to his lack of national security experience. 

Democratic Rep. Jason Crow of Colorado said Sunday he’s worried that “Americans are at risk” with Pulte serving as DNI “because we have someone who’s incompetent at the head of this agency,” in an interview on “Face the Nation with Margaret Brennan.”

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In addition to Pulte’s lack of national security experience, Democrats have railed against the pick for his role in investigations into Mr. Trump’s political foes. Crow, who serves on the House Intelligence Committee, said he’s “obviously concerned that this is somebody who’s a political attack dog, and his single biggest qualification is that he’s loyal to Donald Trump and is willing to go after Donald Trump’s enemies.” But he said more immediately, he’s concerned about Americans’ safety.

“This is a really important position. This sits atop our intelligence agencies, and by law, Congress mandated that this person have significant intelligence experience because they have to make sure that we’re keeping Americans safe, which is not what Bill Pulte is capable of doing,” Crow said. 

Since Pulte’s selection, Democrats have declined to extend Section 702 of the Foreign Intelligence Surveillance Act, which grants intelligence agencies broad authority to spy on overseas targets, causing the legal provision to expire earlier this month

And as Senate GOP leaders tried to bring an end to the impasse by moving to quickly confirm Clayton as permanent director of national intelligence, the president abruptly called for Clayton’s confirmation hearing to be canceled last week.

Talks on extending FISA Section 702 were already strained, with some members of both parties pushing for stricter guardrails and arguing the program can scoop up Americans’ communications without a warrant. Intelligence officials say the program is essential to national security.

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Asked whether Democrats have miscalculated, Crow said “not at all.”

“I know how important it is, but I’m unwilling to trade Americans’ constitutional rights, privacy and essential civil liberties for temporary extension to this program,” Crow said.

Republican Sen. Lindsey Graham of South Carolina said on “Face the Nation” that “any Democrat that shuts down FISA at a time of great peril for the United States is making a huge mistake.”

“We’re playing with fire here, no matter what side does it,” Graham said. “America needs FISA up and running.”

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