Despite the Federal Reserve raising interest rates to a 22-year high, the economy remains surprisingly resilient, with estimates putting third-quarter growth on pace to easily exceed its 2 % trend. It is one of the factors leading some economists to question whether rates will ever return to the lower levels that prevailed before 2020 even if inflation returns to the Fed’s 2% target. The neutral rate of interest — the rate that promotes stable economic growth and inflation — may have been pushed permanently higher due to swelling government deficits and rising productivity.

Federal Reserve Chair Jerome Powell cautioned that past interest-rate increases had yet to slow the economy fully, an argument for holding rates steady for now, even though stronger and sustained growth could require higher rates to keep inflation declining. “Given how far we have come, at coming meetings we are in a position to proceed carefully,” Powell said in a heavily anticipated address at the Kansas City Fed’s annual symposium in Wyoming’s Grand Teton National Park. “We will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”

Existing home sales fell in July for the fourth time in five months, slipping by 2.2% month-over-month and 16.6% yearly, the National Association of Realtors announced. The slump comes amid rising mortgage rates, limited supply, and spiking home prices — the national median existing-home price rose 1.9% in July from the previous year.

Mortgage rates pushed to a fresh two-decade high this week, making it tougher for the housing market to emerge from its stark slowdown.

The BRICS group, which includes Brazil, Russia, India, China, and South Africa, agreed to bring in six new members. Iran and Saudi Arabia – sworn enemies, until recently – plus the United Arab Emirates, Egypt, Ethiopia, and Argentina were invited to join the grouping, which seeks to reshuffle the world order in favor of developing countries (and away from the United States).