The Federal Reserve raised rates for the first time since 2023, lifting the benchmark federal funds rate by a quarter point to 3.75-4 per cent under chair Kevin Warsh, defying Donald Trump's calls for low borrowing costs. The FOMC voted unanimously, signalling further hikes to curb inflation.

"Inflation is too high and has been for too long," Warsh said, noting summer readings show no meaningful improvement. The decision, weeks before midterm elections, aims to prevent Middle East conflict and AI component shortages from sparking a wider crisis.

Trump lashed out on Truth Social, demanding rates "1%, or less" and urging the Fed to "LOWER THE INTEREST RATES... AND FAST!" Investors said the hawkish move bolstered Warsh's credibility, reversing July worries. "Today allows us to move away from questions about Fed independence," said Priya Misra of JPMorgan Asset Management.

Also: Hong Kong unveiled its first five-year plan, aligning with China's state-planning model. Anthropic and OpenAI face internal tensions over AI safety promises. Ursula von der Leyen endorsed Mark Carney's pitch for Canada as an EU "associate member." Harold Hamm plans to invest in Venezuela's Orinoco oil belt. New Zealand's sovereign wealth fund expects global equity outperformance to ease after 14% growth.