Public Markets 24 Hours

Last updated: September 17, 2026, 2:00 PM ET

Fed Raises Rates for First Time Since 2023

The Federal Reserve raised interest rates for the first time since July 2023, lifting its benchmark by a quarter point to a 4% range and signaling more hikes ahead. Chair Kevin M. Warsh left open-ended the path for further tightening, saying inflation remains "too high." The unanimous vote defied pressure from President Trump, who has kept up his demand for cuts while blasting the rest of the committee. Trump called for borrowing costs to be 1% or less, and stocks ended lower while Treasury yields rose after policymakers signaled they remain prepared to tighten further. The decision came just weeks before the midterm elections, marking Warsh's first major step to contain inflation. The Fed signaled another increase could be coming, with updated economic projections showing officials expect rates to stay elevated. Traders applauded Warsh's stance, sending stocks and bonds higher as investors said the chair bolstered his credibility. Bond traders grew more confident in Warsh's inflation fight, pushing two-year yields higher. The president had threatened to halt a broad swath of trade if the Fed raised rates. Trump now looks isolated on interest rates after the unanimous vote ran counter to his demands.

Equities React to Hawkish Hike

US stocks fell after the Fed rate increase, with all three major indexes closing lower for the seventh time in the past eight sessions after Warsh said inflation is still "too high." Stock futures rallied in early trading as markets retraced post-Fed moves, while the 10-year Treasury yield hovered just below 5% as oil retreated. US stocks rose alongside Treasuries as falling oil prices raised hopes that inflation pressures could ease. Citadel Securities' Scott Rubner turned increasingly constructive on US equities. Japanese stocks gained 1.0%, led by pharmaceutical and machinery names on bargain-hunting. Hong Kong property stocks dropped after the city followed the Fed with its own rate increase, threatening a nascent recovery. The FTSE 100 rose ahead of the Bank of England decision, with the pound stronger.

Treasuries, Bonds and the New Yield Normal

Treasury yields cooled after the Fed hike as US labor markets showed resilience. Global bond yields retreated Thursday as the Fed's rate hike and vow to fight inflation calmed markets. High Treasury yields look like the new normal, with government borrowing costs climbing worldwide as investors demand greater compensation. Food prices now present fresh risk for global bonds after this year's energy-driven selloff. A roughly $3.6 billion Schwab municipal-bond ETF faced record outflows amid the bond rout. Foreign holdings of US Treasuries fell to a nine-month low in July. China cut its holdings to the lowest level since 2008 as the rift between the world's two largest economies deepened. India, by contrast, bought a record amount of Treasuries in July, helped by large capital inflows. The dollar notched its best day in three months as traders bet on more rate increases. The Fed's hike may not boost the dollar much, however, given synchronized global tightening. The yen came under pressure ahead of the Bank of Japan decision as higher US yields bolstered the dollar. The US rate rise jolted the yen, adding pressure on the BOJ to tighten monetary policy.

Bank of England and European Rates

The Bank of England held rates steady but warned of higher inflation, a day after data showed the fastest pace of price increases in months. The BOE hinted at tightening ahead and announced a multiyear plan to fully unwind its asset purchase facility. That quantitative tightening plan brings finality to QT through 2034, unwinding the BOE's holdings. Bond investors focused more on the QT plans than the rate decision itself. UK lenders raised mortgage rates as inflation fears intensified, adding to recent increases across fixed-rate products. Belgium's government intensified budget talks to find roughly €10 billion in savings by 2029. Canada's producer prices rose 1.3% in July on energy costs, Statistics Canada reported. Uganda's central bank raised its reserve ratio to 13.5% to defend the shilling.

Oil, Gas and Commodities

Oil prices slipped again Thursday, helped by hopes Saudi Arabia could restore supply. Oil held a steep drop on signs Middle East supply disruptions were easing after Saudi Arabia moved to restore a vital pipeline. Crude fell amid optimism that Mideast supply disruption could be contained. Saudi Arabia's shuttle service that slips oil through the Strait of Hormuz now looks like a critical fallback. Aramco has been looking to secure thousands of tons of diesel in the Mediterranean after attacks. European gas prices rose despite oil's decline, with inventories remaining low. Copper steadied as traders shrugged off the Fed's hawkish signals. Gold edged up in early Asian trade after slipping in the wake of the Fed hike. Gold pushed higher after a three-day decline as US Treasuries clawed back some losses. Precious metals relinquished gains after the Fed raised rates as expected. Singapore's push to become a gold hub gained momentum with DBS Group's vault expansion.

Energy Markets and Geopolitics

As a new oil power, China gained more sway over energy markets after the war with Iran revealed its influence as the world's biggest importer. The world is doing little to stave off the next oil shock as the fuel crisis deepens and talk of a diesel export ban heats up. A fuel-export ban would likely target diesel, which is in short supply globally. Energy traders are toasting the war boom as geopolitical conflict disrupts global supply. Exxon is nearing a preliminary deal to invest in Venezuela's oil fields. Exxon is negotiating a return to the Latin American country after 19 years. Harold Hamm's Continental Resources signed a preliminary oil deal in Venezuela. The Trump oil ally moved to invest in the country, marking the latest foray by a Western producer. Petrobras signed production-sharing contracts for Ivory Coast offshore blocks. Canada's oil sands got a boost from Mark Carney, with tax breaks fueling rare alignment between Ottawa and the industry. Indonesia doubled its bioethanol target to 20% for 2028 to cut oil imports. The US targeted foreign restrictions in a plan to boost biofuel exports. US intelligence warned of China theft over the proposed F-35 sale to the Saudis. The US probed Iran links to cyberattacks on energy tankers bound for Texas.

Deals, IPOs and Private Markets

Mark Walter and Todd Boehly agreed to sell their Chelsea stake for $1.3 billion to Clearlake Capital. Clearlake agreed to buy out chairman Boehly and Walter. The pair sold 25% of the club for £950mn, helping the financiers raise funds as their insurance businesses faced pressure. The FTC requested additional information on the Fertitta-Caesars merger after Tilman Fertitta reached an agreement in May. Apollo is in talks with SoftBank to boost a loan to $9 billion for OpenAI bets. The SEC granted exemptions to allow venues to trade tokenized stocks, with conditions. Revolut is planning a dual listing in New York and London, with its CEO citing greater US liquidity. Vue explored a London IPO after a record box-office summer, with owners eyeing a £1bn valuation. Holtec postponed its planned US IPO, a $900 million offering. The nuclear services firm pulled its IPO over a "perfect storm" in the AI sector, founder Kris Singh said. National Stock Exchange of India's long-awaited IPO opened, a $2.4 billion offering with valuation in focus. AI startup Plaud plans to file for a US IPO in 2028 once annual revenue exceeds a threshold. Salesforce targeted fiscal 2030 revenue at over $63 billion.

Private Equity and Venture Capital

Rising rates will make private equity's bad year a lot worse, with the Fed's hike expected to wreak havoc on funds already struggling to sell companies. Rising rates threw a spanner in investment bankers' spreadsheets, as higher capital costs theoretically lower company values. A spate of AI-driven mega-IPOs is stretching the feast-or-famine VC model. The start-ups attracting billions pursue long-shot bets. Deep Mind offshoot Emulate neared a $4 billion valuation just a month after founding, close to raising $700 million. Investors piled into brain implants, with $1 billion flowing into thought-controlled technology in 2026. Congressional Democrats took aim at private equity's role in medicine, with a bill backed by Sen. Warren and Rep. Ocasio-Cortez. Momentum Group is seeking acquisitions to grow its South African adviser network. Elham Credit Partners hired Stephen Allan, a former BlackRock executive, for Australia private credit. The Czech government revived state asset sales under new leadership. Big Law partners are turning into Algarve real estate developers.

Banking, Lenders and Corporate News

Raiffeisen shares fell 7% after a short-seller report over the Austrian bank's Russia ties. Deutsche Bank's lax controls enabled a banker to embezzle €600,000, a court found, handing a two-year suspended sentence. HSBC axed a $38,000 school fee subsidy for new Hong Kong bankers. Thousands of Barclays staff revolted against a three-day office mandate. Mergermarket owner Ion slashed 20% of staff as pressure mounted on Andrea Pignataro's empire. Wall Street warned that the trading boom is losing steam after a record second quarter. Bilfinger shares fell 20% after the industrial services provider lowered its outlook and announced job cuts. Lennar cut its deliveries target again on rate pressure, expecting full-year deliveries of 80,000-82,000 homes. US housing starts dropped 2.6% in August as multifamily projects plunged. Next raised its profit forecast after strong first-half sales. Next's CEO Simon Wolfson warned on tax rises, saying the Budget should aim to control spending. Yeti targeted mid-single-digit annual net sales growth on new products and international expansion. Volvo Car planned its largest-ever product push with seven new models. Air Asia shares plunged 21% to a four-year low on a route absorption report. Diageo workers will strike at Scotland's Cameronbridge distillery over job cuts as demand slumps.

Autos, Industrials and Trade

General Motors partnered with Lockheed Martin to produce Patriot missile parts as the US faces a critical arms shortage. Bolt will launch 25,000 robotaxis in Europe with Lucid, the most ambitious autonomous ride-hailing plan on the continent yet. China's BYD targets four European plants to anchor its regional push. European carmakers warned that EU-UK EV tariffs could be "catastrophic," urging a delay to stricter rules of origin. The EU asked China to voluntarily limit hybrid car exports as cheaper Chinese vehicles flood Europe. Japan has good reason to welcome driverless taxis amid a driver shortage. Trump directed agencies to remove Canadian goods from government purchases. Trump sought "Made in U.S.A." labels on beef as an import rule angered ranchers. Senators asked the FTC to probe Walmart and Amazon over bots' "Made in America" data. Retail chatbots drew lawmaker pushback over product origins. The US reopened Santa Teresa, its largest port for Mexican cattle shipments. The House passed a bill taking aim at data center electricity costs. US sanctions on Cuba stranded thousands of shipping containers. The US passed a sanctions bill targeting importers of Russian oil, with tariffs of up to 100% on buyers.

Emerging Markets and Global Economy

Turkey's authorities detained finance executives at Tera and Destek amid fund turmoil. Turkey's regulator filed criminal complaints against dozens of people and will liquidate some funds managed by seven firms. Turkish authorities froze trading to contain the scandal, with 38 people referred to prosecutors. Brazil's government announced an increase to social welfare payments weeks before a tight election. The World Bank tripled private capital mobilization to $112 billion in FY26, nearly equaling its own deployment. World Bank President Ajay Banga has worked to make the development institution more attractive to private financing. India's $900 billion infrastructure push may spur muni bonds, with the regulator encouraging municipalities to pool financing. India supplies Wall Street with CEOs but faces a shortage at home. Malaysia's battered bonds face risk of a Japanese fund exodus. Ethiopia's exchange approved 11 new listings, with one next week. Asia risks unrest as El Niño and war threaten food supplies. The global economy is running out of wiggle room after countries blunted the worst of the energy shock. The world economy is becoming wary of the US as America's position of global economic stability looks shakier. China added currencies to its onshore central clearing system in a push for the yuan globally. China's gas demand outlook was clouded by Guangdong's power shift. Morgan Stanley called for greater disclosure after the Bathla collapse. Calpers CEO Marcie Frost received a $1 million bonus as returns beat target. Berkshire may raise its stakes in Japanese trading houses, Itochu said.

AI, Technology and Regulation

OpenAI disclosed six new incidents of "concerning" AI behavior and released a framework for reporting them. The company disclosed misalignment incidents and adopted new reporting rules, hoping to inspire greater transparency. OpenAI launched a system to track and report AI model misconduct. King Charles warned of "existential dangers" from AI ahead of a Burnham meeting with Trump. Huawei's chair urged China's AI labs to accelerate development, contrasting with Silicon Valley slowdown calls. Al Gore downplayed AI threats and touted its climate potential