We talked about whether the Fed would raise interest rates last week. And we got our answer: a resounding yes. Poor Kevin Warsh. He’s living the very definition of being between a rock and a hard place. 

Boss (President Trump) hires you to cut interest rates -> Boss starts war with Iran -> War boosts prices of oil -> High oil prices lead to greater inflation -> Causing you to raise interest rates.

Jerome Powell is probably somewhere having a cocktail.

That same oil spike is also hitting the airlines. As of Thursday, jet fuel hit a recent high of $4.63 a gallon, according to Argus Media data published by Airlines for America.

Everyone's absorbing it, but as Skift's Meghna Maharishi reported this week, the ultra-low-cost carriers are getting hit hardest — and there's little appetite in Washington to help.

Jonathon Freye, executive director of the Association of Value Airlines — which represents Allegiant, Frontier, Avelo, and Breeze — told Skift the group has reached out to several congressional offices in recent weeks with no sign Congress will consider relief. "There's clearly a sort of concern about the affordability of transportation, and I think for a lot of our customers and the big carriers, too," Freye said.

The majors have options the discounters don't. Namely, that they can raise prices and fiddle with capacity. This week, United Airlines said the airline expects to pass on 100% of fuel costs to consumers by year's end. American Airlines sees growth slowing in 2027, with sustained fuel prices forcing adjustments to capacity planning. 

A bill to temporarily suspend the federal gas tax failed in the House last week. The president had backed the idea earlier this year, but Speaker Mike Johnson told Politico he couldn't get his caucus to vote. Meanwhile, Canada is handing its own low-cost carriers multi-million-dollar loans to weather the same fuel spike.

Which brings us to Canada. Oh, Canada. Being a native Michigander, Canada news is always close to my algorithm. At this point, I think Prime Minister Mark Carney is basically just trolling President Trump about its floated, first-ever associate membership in the E.U. I am here for it.

Also of note, international inbound travel to the United States (ex Canada and Mexico) was down 12% year-over-year in August. 

Last but certainly not least. Want to talk politics in-person? Come to Skift Global Forum next week in New York. It’s September 22-24. We only have a few tickets left. If you’ve been on the fence, now’s the time to grab them before it’s too late.