U.S. Defense Secretary Hegseth said at a press conference that Iran, not the U.S., started the war, that more than 80% of Iran’s nuclear industry base has been destroyed, and that the U.S. controls the Strait of Hormuz. He added impeachment efforts show the U.S. will punish its own, called the resolution deliberate sabotage, and said attempts to remove him amount to acting against U.S. service members.

Bank of England Deputy Governor Lombardelli said he does not rule out consecutive rate hikes.

Richmond Fed President Barkin said inflation has run above the Fed's 2% target for nearly six years and that risks to the central bank's dual mandate are concentrated on the inflation side. He said firms face broad cost increases and plan to pass some costs to consumers. With demand remaining strong and inflation elevated, the direction toward tighter policy is clear but should be pursued cautiously. Barkin warned that weaker-than-expected AI progress could damp business investment, equity prices and consumption, while stronger-than-expected AI could accelerate job displacement. He will be an FOMC voting member in 2027.