Last updated: September 17, 2026, 7:26 AM ET
Federal Reserve & Rates
The Federal Reserve raised interest rates for the first time since 2023, with stocks ending lower and Treasury yields rising after policymakers signaled they remain prepared to tighten further. Chairman Kevin Warsh said inflation is still "too high," and the U.S. Treasury market sold off sharply, with all three major U.S. stock indexes closing lower for the seventh time in the past eight sessions. The decision marked the first rate hike since July 2023, and Treasury yields climbed while OpenAI held talks about a new funding round. The Federal Reserve's move came less than two months before midterm elections, a politically sensitive backdrop for the central bank.
Warsh's inflation fight drew applause from traders, with stocks and bonds rallying as investors said the Fed chair has bolstered his credibility. A clearer reaction function is proving a fine substitute for forward guidance, market participants noted. Global bond yields retreated Thursday as the rate hike and accompanying vow to contain inflation calmed markets. Two-year yields rose in earlier trade as traders bet on further increases, signaling growing confidence in Warsh's inflation-fighting resolve.
The Fed's latest projections suggest another rate increase could be coming, and reading the central bank's economic forecasts like a pro requires attention to the dot plot and the balance of risks. For households, the quarter-point increase affects consumer finances by raising borrowing costs on credit cards and other variable-rate debt. The hike will add to interest costs for borrowers but won't directly move fixed-rate mortgages already locked in. A separate guide to the Fed decision noted the central bank was widely expected to lift its key rate by a quarter of a percentage point.
President Trump threatened to halt trade if the Fed raised rates, escalating his pressure campaign on the central bank ahead of its decision. The Fed's decision to raise rates saw Warsh say the bank acted to fight inflation, with several key takeaways for investors. A separate explainer outlined what to know about the Fed's move. The Fed's inflation fight drags on, with a top Democrat opposing a major U.S. arms sale to Israel and BlackRock's leadership weighing in. The Fed meeting tested credibility with bond investors amid inflation fears. Treasury Secretary Bessent and Warsh face bond market pressure, with both confronting similar tests: calming investors while preserving room to maneuver.
A daily roundup noted the Fed raised rates while Saudi Arabia scrambled to restore oil supply and E.U.-Canada ties deepened. A FirstFT newsletter covered the Fed defying Trump and Europe's potato shortage. A projections guide explained how to interpret the Fed's quarterly forecasts. The Fed's rate increase pushed U.S. stocks lower, while a separate report examined why the Fed might raise rates even as borrowing costs surge, noting elevated rates have raised mortgage and car-loan costs without cooling demand sufficiently.
Currencies & Dollar
The dollar notched its best day in three months on prospects that the Federal Reserve will raise rates again, with hawkish Warsh lifting the greenback as traders bet on more increases. The Fed's hike is positive for the dollar, but there may not be enough central bank tightening abroad to sustain the rally, according to analysts. Higher U.S. yields continue to bolster the dollar, keeping pressure on the yen ahead of the Bank of Japan's policy decision. The U.S. rate rise jolted the yen before the BOJ meeting, adding pressure on the central bank to tighten monetary policy.
China has expanded its yuan clearing system to more foreign currencies, advancing the yuan's global push. The world economy is growing wary of U.S. dominance as America's position of global economic stability starts to look shakier. Uganda's central bank raised its cash reserve ratio to 13.5% for commercial banks as it moved to defend the shilling.
Bonds & Credit
Bond investors are more focused on the Bank of England's QT plans than on its rate decision, with quantitative tightening potentially eclipsing rates as the key event for the gilt market. Food prices now pose a fresh inflation risk for global bonds after this year's selloff, with energy having been the scourge of bond markets and investors now watching agricultural commodities. Firms are shying away from long-dated bond offerings as costs rise, exemplified by Aon Inc. pricing $2 billion of notes maturing in 2056.
India bought a record amount of Treasuries in July, helped by large inflows under its capital account. Foreign holdings of U.S. Treasuries fell to a nine-month low in July, the lowest level since October. India's $900 billion infrastructure push may spur municipal bonds, with the capital markets regulator encouraging municipalities to pool financing. Malaysia's battered bonds face risk of a Japan fund exodus as Japanese capital may flee its struggling market.
Equities & Markets Wrap
US stocks rose alongside Treasuries as oil prices fell, raising hopes that inflation pressures may ease. Copper steadied as traders shrugged off hawkish messaging from the Federal Reserve. Gold pushed higher after a three-day decline as U.S. Treasuries clawed back some losses following the Fed rate hike. Gold edged up in early Asian trade after slipping in the wake of the Fed's first increase. Precious metals relinquished gains after the Fed raised rates as expected, with gold prices slipping.
Ed Yardeni, one of Wall Street's biggest stock bulls, is slashing his S&P 500 target to 7,900 on downturn risks. Consumer stocks most closely tied to U.S. consumer health have trailed the broader market ahead of the Fed rate hike, with unloved names like Walmart facing pressure. Hong Kong property stocks fell after the city followed the Federal Reserve with its own rate move, threatening the sector's recovery. Japanese stocks were higher on bargain-hunting, with the Nikkei rising 1.0% led by pharma and machinery shares.
Commodities & Energy
Oil held a steep drop on signs that supply disruptions in the Middle East are easing after Saudi Arabia moved to restore a vital pipeline. Oil was lower in early Asian trade, with softer prices reflecting optimism about containing Mideast crude supply disruption. Global oil prices could hit the highest levels in months after Saudi pipeline attacks, with prolonged export restrictions potentially pushing prices even higher. Chinese oil prices hit record highs after the attacks, with Beijing having cushioned the global impact by drawing down stocks but now facing limits.
European gas prices rose despite oil declining, with inventories remaining low on the prospect of lost Saudi supply. U.S. crude oil inventories fell for a third consecutive week while gasoline and distillates also drew down. U.S. natural gas futures gained for a third session on warmer-for-longer weather forecasts. Indonesia is doubling its bioethanol-blending target to 20% by 2028, accelerating a push to cut oil imports. The Trump administration is targeting foreign restrictions in a plan to boost biofuel exports.
Deals & Corporate News
Apollo Global Management is in talks with SoftBank about boosting a loan to $9 billion for OpenAI bets. Tata Sons has approved going public in a majority vote and asked Chairman Natarajan Chandrasekaran to stay on to steady the group. The Tata Sons board met to discuss whether the outgoing chairman should be asked to remain amid an RBI IPO directive and leadership uncertainty. Chelsea Football Club owners Clearlake Capital agreed to buy out chairman Todd Boehly and Mark Walter as shareholders. The deal to sell 25% of the football club for £950 million helps the financiers raise funds as their insurance businesses face pressure.
KKR has emerged as preferred bidder to buy Portuguese packaging maker Logoplaste. Sazerac is in talks to acquire German schnapps maker Berentzen-Gruppe AG. A court barred Ardagh Holdings from selling its metals packaging unit. Zillow lost its bid to force Illinois' largest real estate listing provider to continue feeding listings to its platform. The SEC moved to scrap rules governing how shareholders can bring corporate proposals, a significant shift for proxy battles.
Venezuela is preparing to ship aluminum to the U.S. under a deal with Mercuria Energy, with Heeney also eyeing a gold agreement. A separate report confirmed the aluminum shipment and gold deal talks. Exxon is nearing a preliminary deal to invest in Venezuela's oil fields, negotiating a potential return 19 years after exiting. Harold Hamm's Continental Resources signed a preliminary oil deal in Venezuela, led by one of Trump's closest allies in the U.S. oil industry. The move by Continental Resources marks the latest foray by a western oil producer into the Latin American country. Trump's ally Harold Hamm struck the Venezuela deal with a preliminary agreement.
India & Emerging Markets
The National Stock Exchange of India's long-awaited IPO opened for subscription with valuation in focus, a $2.4 billion offering. Goldman Sachs, HSBC, Fidelity and Eastspring are among major investors that participated in NSE's $703 million anchor book. Indian state-owned refiners face the most significant supply uncertainty in years over Russian oil. India supplies Wall Street with CEOs but has a shortage at home, with Indian-born bankers having led global financial giants from Deutsche Bank to Citigroup.
Turkey's market regulator filed criminal complaints against dozens of people amid a fund meltdown. Turkish officials are trying to stop a meltdown at some of the country's most prominent funds, with the regulator set to liquidate funds managed by seven firms. Tera Portfoy Yonetimi said two of its funds with a combined 366 billion liras defaulted on redemptions. Turkish stocks slid in a "fund run" as investors withdrew $1 billion, with MSCI raising the prospect of cutting Turkey from emerging market to frontier status.
China's BYD plans to establish four plants in Europe over the long term as the Chinese automaker anchors its regional push. The E.U. has asked China to voluntarily limit hybrid car exports as cheaper Chinese vehicles flood the European market. Ethiopia's Securities Exchange has given in-principle approval for 11 new listings, with one debuting next week. Momentum Group is seeking to buy businesses as the South African investment firm grows its adviser network.
U.K. & European Markets
The FTSE 100 rose ahead of the BOE rate decision, with the pound and stocks stronger as traders awaited the Bank of England's verdict. Next, seen as a bellwether for U.K. retail, raised its profit forecast after a better-than-expected first half. Morrisons reported the biggest sales increase in more than a year as hot summer weather and the World Cup boosted demand. Volvo Car will roll out seven new models in its largest-ever product push. HSBC is axing a $38,000 school fee perk for new Hong Kong bankers, ending a longstanding subsidy used to attract senior staff to the Asian financial hub.
Karel Havlicek, a long-time fan of Ronald Reagan's economic policies, is reviving dormant plans to sell Czech state assets. A cross-party group of MPs is urging the UK energy department to drop "net zero" from its name, saying the term has become a lightning rod for opposition to climate policy. NHS England's abolition is delayed by a pay stand-off, with health service leaders urging ministers to set up a temporary body to resolve the dispute. Vue is exploring a London IPO after a record box-office summer, with owners of the European cinema chain looking to capitalize on blockbuster results with a £1 billion-plus valuation.
Asia-Pacific
Air Asia Group shares plunged as much as 21% to the lowest in almost four years on a route absorption report. Berkshire Hathaway is considering increasing its holdings in Japanese trading houses, according to Itochu. Japan has good reason to welcome driverless taxis, with a shortage of taxi drivers giving the country a structural reason for robotaxis to grow. Singapore's push to become a major gold hub is gaining momentum, with DBS Group expanding its vault operations.
Electricity market reforms in Guangdong, one of China's economic powerhouses, could cloud China's gas demand outlook. CATL bulls are unfazed by a $100 billion rout, rejecting "de-CATLization" fears. Morgan Stanley researchers have suggested greater disclosures to assess credit risk after the Bathla collapse. Severe weather disruptions will amplify food security risks in Asia, potentially fueling unrest, according to a consultancy. The Kremlin is pushing wheat exporters to maintain Russia's geopolitical edge as the biggest wheat exporter amid Black Sea disruptions.
Technology & AI
OpenAI disclosed six new incidents of "concerning" AI behavior and released a framework for reporting when models behave unexpectedly. The company said it hopes to inspire competitors to greater transparency as public scrutiny of AI safety intensifies. A Deep Mind offshoot is nearing a $4 billion valuation just a month after founding, with researchers leaving the Big Tech group's London lab close to raising $700 million. Holtec Nuclear suspended its $900 million U.S. IPO plan, with founder Kris Singh citing a "perfect storm" in the AI sector and market sentiment against data centers denting the flotation. A separate report confirmed the IPO suspension amid AI sector volatility.
Investors are piling into brain-computer interfaces, with start-ups developing thought-controlled technology drawing venture capital. AI is creating ghostwriting jobs on LinkedIn as CEOs seek a more human touch. Lower wage growth and slower hiring in some sectors may be the result of artificial intelligence quietly reshaping the workforce. "Recursive self-improvement" — the idea that AI could learn to improve itself — is the liftoff scenario that terrifies AI doomsayers. An experiment with roots at M.I.T. used AI and satellite images to grow a coastal beach in the Maldives to fight rising seas.
Staff at OpenAI and Anthropic are grappling with how to turn AI slowdowns into safety progress, sparking internal rifts. At a private event this week, dozens of business leaders cited the AI safety threat as a top concern. The law already allows Anthropic and OpenAI to collaborate if their real objective is safety, and an antitrust exemption would invite collusion, according to an opinion piece. In Silicon Valley, hardware is having a moment again as AI transforms the technology industry and venture capital flows into "deep tech." A market talk roundup covered OpenAI, Soitec and other tech names. A Citi survey raised questions about Meta glasses sales claims, suggesting either the product is selling extremely well or the survey has issues. Marketers are navigating build-or-buy decisions in the AI era, with Grindr's CEO saying consumer brands remain spooked by past cycles.
U.S. Policy & Politics
President Trump directed agencies to remove Canadian goods from government purchases, escalating trade tensions with a key ally. The E.U.'s offer of "associate member" status to Ottawa shows how U.S. allies are hedging amid strained ties. The invitation for Canada to become an "associate member" is a sign that Trump's push for Canada to become the 51st state backfired. The E.U. is talking of making Canada its first associate member as U.S. ties weaken for both. The House passed a bill taking aim at data center electricity costs, directing state regulators to consider rules requiring data centers to pay more. Congress is taking up a bill to regulate the "Wild West" of collegiate sports, with critics arguing it would limit athletes' rights. The House voted to mandate AM radio in new cars, defying automakers, with the bill now heading to expected Senate passage.
The U.S. passed a sanctions bill targeting Russia's economy, with Trump expected to sign a measure authorizing tariffs of up to 100% on buyers of Moscow's oil. Washington removed Venezuela from the group of countries it says failed to meet counter-narcotics obligations, and said Colombia may follow. The State Department extended a visa ban on Mahmoud Abbas and other Palestinian officials, preventing the leader of two governing Palestinian groups from entering the U.S. The U.S. indicted a Russian assassination network, alleging a global plot involving a former Russian intelligence officer. U.S. intelligence is warning of Chinese theft over the planned sale of F-35 jets to Saudi Arabia, according to internal reports including one from the Pentagon's Defense Intelligence Agency.
The U.S. is probing a possible Iran link to cyberattacks on energy tankers bound for Texas, with vessels attacked in the Strait of Gibraltar. The Trump administration moved to gut a core protection of the Endangered Species Act, with an internal memo reinterpreting the law so that only intentional killing of an endangered animal is prohibited. The Interior Department detailed plans for warning signs outside the Smithsonian, outlining what it hopes to convey on 12 signs. The IRS won't say how much in taxes goes unpaid under Trump, with the absence of the annual tax gap estimate making it harder to gauge revenue losses.
Corporate Governance & Labor
Thousands of Barclays staff are revolting against a three-day office mandate, pushing the bank to grant exemptions for employees with longer commutes and one-off circumstances. Amazon is boosting minimum pay for U.S. full-time core operations staff to $20/hour, a $1-per-hour increase for front-line workers. Ion Platform, the largest unit of Andrea Pignataro's technology group, is cutting 20% of staff amid debt pressure and scrutiny. Congressional Democrats led by Sen. Warren and Rep. Ocasio-Cortez are targeting private equity's role in medicine with a bill to close "loopholes." The House held Leon Black in contempt over Epstein subpoenas after the billionaire investor refused to appear for a deposition.
Alexandre Arnault, son of LVMH boss Bernard Arnault, has joined Nike's board as the sportswear brand attempts a turnaround amid a sales slump. LVMH scion Alexandre Arnault's appointment comes amid a sales slump at the sportswear giant. The private equity hand rolling up the Algarve exemplifies the transformation of Big Law partners into real estate developers, with London lawyer Neel Sachdev's side quest leading the way. Former U.S. vice-president Al Gore downplayed AI threats and touted its climate potential, arguing in favor of technology to help with green progress. Apple's trust premium in the age of AI is under scrutiny, with markets signaling discomfort even before the latest wave of worries. St James's Place looks smartly attired for the AI wealth party, with the wealth manager soon able to focus on growth rather than historic issues.
Real Estate & Housing
Lennar trimmed its delivery outlook on rate pressure and housing market conditions, expecting full-year home deliveries of between 80,000 and 82,000. U.S. retail sales rebounded in August, rising 1.2% versus the 0.5% decrease recorded in July, in a show of consumer strength. The SpaceX IPO gave one couple license to chase their dreams, quitting their jobs and budgeting $25,000 a month for a year of fun.
Health & Science
A "life-changing" breast cancer drug, Enhertu, will be made available on the NHS after being previously rejected by the watchdog in England on cost grounds. Human brain tissue has been grown in mice for the first time, with a new genetic engineering technique promising to aid the quest for treatments for incurable conditions. A new simulation suggests little red dots, unusually compact objects seen in photographs of the early universe, may be the early stage of massive black holes. Oura will struggle to justify its pulse-racing $16 billion valuation, with the health technology company needing more than celebrity endorsements. Human-caused warming played a "very strong" role in Himalayan floods, with rising temperatures destabilizing permafrost before a rock collapse.
People & Culture
Peter Max, the trippy artist of the counterculture era, has died at 88, having become fabulously wealthy from work that breathed the spirit of the 1960s. Annie Dillard, the meditative author of "Pilgrim at Tinker Creek," has died at 81, her Thoreau-like account of journeys in the woods having won a Pulitzer when she was. Julia Louis-Dreyfus is ready to make a meal of Broadway, returning to the stage after four decades with a "terrifying" desire to perform live again.
Ed Sheeran's tour turned into a clash over Palestinians and antisemitism, with four supporting acts dropping out citing the right to free speech. A 40-minute phone call left the tour hanging by a thread, with Patriots owner Robert Kraft making clear to the singer that he would cancel his involvement. Nick Candy, the Reform UK treasurer, met Laureano Ortega, the son of the nominally socialist dictator, days before a company he is linked to won mining rights in Nicaragua. A wedding guests' guide noted flights and hotels are now customary expenses in addition to gifts, but invitations can be declined.
Opinion & Analysis
Kathy Hochul's "energy rebate checks" send out $1 billion after the governor accused Trump of a "campaign bribe," according to an opinion piece. The "zero-risk society" has arrived, with the U.S. having achieved dominance by taking big chances and that ethos now in question. Permitting reform is needed, according to an opinion piece, as electricity demand is projected to rise and the U.S. must build transmission to keep up. A former U.S. AI envoy warned that coming safety talks will not save us, even if Beijing now takes AI risks seriously. The Republican fringe is becoming the mainstream, according to an opinion piece on the G.O.P.'s deepening neo-Nazi problem.
Sports & Miscellany
Chelsea Football Club's ownership shake-up saw Clearlake buy out Boehly and Walter for £950 million. Fox is revamping the sports site Outkick following the exit of founder Clay Travis. A roundup of auto and transport news covered Union Pacific, United Airlines, J.B. Hunt Transport Services and others. United Airlines and American Airlines warned of capacity cuts amid a fuel cost surge. Ferrari is aiming for ocean-racing records with Hypersail, using technology developed for its cars to build a "self-sufficient" 100-foot racing yacht. 11th Hour Racing is pushing sustainability rules in The Ocean Race, with gender equality and ocean protection initiatives. Women sailors are challenging old-school maritime culture, with female representation improving but a significant gender gap remaining. Sailing technologies are proving their value beyond the marine sector, with the rapid pace of innovation showing the benefits of cross-industry collaboration.
Geopolitics & World
The Houthis and Saudis traded claims of military attacks as conflict escalated, with the Iran-backed militia in Yemen saying it downed a Saudi jet. Israel wants more one-ton bombs from the U.S., and the Trump administration plans to deliver 60,000 of the powerful munitions. Turkey has begun a broad crackdown on the LGBTQ community, with the government calling the campaign an effort to protect families. Myanmar deported American businessman Adam Castillo on Wednesday evening, ending a detention that had strained ties with Washington. The U.S. fast-tracked the deportation of José Serrano, a critic of President Daniel Noboa accused of torture. A lawsuit blames the Texas abortion ban in a pregnant woman's death, claiming state officials created a climate of fear that kept doctors from providing care.
A news helicopter crash in Los Angeles highlighted the hazards of aerial reporting, with swarms of news helicopters traversing Southern California. A separate report underscored the risks of aerial reporting. The victims of the NBC4 crash included a journalist and pilot who had long served the region. An emergency hearing was sought over the Kennedy Center closure after a Democratic lawmaker asked a judge to consider whether the move violates the law. A judge ordered Mamdani to turn over communications with the rent board as New York landlords seek to invalidate a city panel's vote to freeze rents. Democrats met with El-Sayed, putting aside rifts ahead of midterms, with more than a dozen Democratic senators huddling despite disagreements on Israel. Aaron Guckian won the G.O.P. nomination for Rhode Island governor and will face Helena Foulkes. A look back at a wild primary season captured the good, the bad and the bizarre from the battles that helped set the midterm landscape. Bo French, an anti-Muslim hard-liner brought into the fold by Republican leaders, faces backlash over posts about University of Texas students. A dumbphone experiment made one writer's life better but everyone else's worse, with an extended digital detox proving freeing yet hard on friends and family.