Last updated: September 17, 2026, 6:01 AM ET
Federal Reserve
The Federal Reserve raised interest rates for the first time since July 2023, with stocks ending lower and Treasury yields rising after policymakers signaled they remain prepared to tighten further. Chairman Kevin M. Warsh said the bank acted to fight inflation, calling price pressures still "too high," and the central bank signaled another increase could be coming. The decision marked Warsh's first major step to contain inflation and came less than two weeks before midterm elections. The Fed issued its first hike since 2023 as Treasury yields climbed and OpenAI held talks about a new funding round, while the rate increase will add to interest costs for credit-card borrowers but won't directly hit most fixed-rate mortgages. The quarter-point move affects your finances broadly, and readers can read the projections like a pro. The Fed is raising rates as its inflation fight drags on, and the decision itself was widely anticipated. The Fed acted despite high borrowing costs that have raised the cost of mortgages and car loans without cooling demand, and the move affects your money in ways both direct and indirect. The Fed's meeting was a big moment for the bond market, and the latest Fed decision came alongside a Saudi pipeline attack and shifting E.U.-Canada ties. The Fed raised rates as part of a broader First FT newsletter that also covered how AI is transforming warfare and Europe's potato shortage, while bond traders are convinced the Fed will hike, putting the chance of an increase at about 94%.
Market Reaction
U.S. 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." Stocks and Treasuries got a lift as oil retreated, raising hopes that inflation pressures may ease. Global bond yields retreated as the Fed's rate hike and vow to fight inflation calmed markets. The dollar notched its best day in three months on prospects that the Fed will raise rates again. Bond traders signaled growing confidence in Warsh's credibility in the inflation fight, and the Treasury secretary and Fed chairman face similar tests in calming bond investors. Ed Yardeni, one of Wall Street's biggest bulls, cut his S&P 500 target to 7,900 on downturn risks. Consumer stocks faced pressure ahead of the hike, with names tied to consumer health trailing the broader market. The Fed's move came as Trump threatened to halt a broad swath of trade if interest rates were raised. U.S. retail sales rebounded in August, rising 1.2% versus the 0.5% decrease recorded in July.
Currencies & Bonds
The yen came under pressure as higher U.S. yields bolstered the dollar ahead of the Bank of Japan's decision. The U.S. rate rise jolted the yen before the BOJ meeting, adding pressure on the central bank to tighten monetary policy. The Fed's hiking is positive for the dollar, but there may not be enough central bank tightening abroad to sustain the boost. India bought a record amount of Treasuries in July, helped by large inflows under the country's capital account. Foreign holdings of U.S. Treasuries fell to a nine-month low in July, the lowest level since October. China expanded its onshore central clearing system to more foreign currencies in a push to internationalize the yuan. Firms are shying away from long-dated bonds as costs rise, with Aon Inc. pricing $2 billion of notes maturing in 2056 as part of a broader deal. Malaysia's struggling bond market may see an outflow of Japanese capital as its yields lose appeal. The world economy is becoming wary of the U.S. as America's position of global economic stability starts to look shakier.
Commodities
Oil fell amid hopes to contain Middle East crude supply disruption, with softer prices reflecting optimism about the situation. 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. U.S. crude oil inventories fell for a third consecutive week while gasoline and distillate stockpiles posted a moderate draw. Gold edged up in early Asian trade after slipping in the wake of the Fed's first rate hike since 2023. Gold pushed higher after a three-day decline as U.S. Treasuries clawed back some losses. Precious metals relinquished gains after the Fed raised rates as expected. Copper steadied as traders shrugged off hawkish messaging from the Fed. U.S. natural gas futures gained for a third session with warmer-for-longer weather forecasts. European gas prices rose despite an oil decline, with European inventories remaining low. Global oil prices could hit their 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 on the Saudi pipeline, with Beijing having cushioned the global impact by drawing down stocks. Singapore's push to become a major gold hub is gaining momentum with DBS Group expanding its vault operations.
Asian Markets
Japanese stocks were higher, with the Nikkei rising 1.0% on bargain-hunting and strength in pharma and machinery shares. Hong Kong property stocks dropped after the city followed the Federal Reserve in raising rates, threatening the sector's recovery. India's National Stock Exchange opened its $2.4 billion IPO with valuation in focus, while Goldman Sachs, HSBC, Fidelity and Eastspring led the $703 million anchor book. Indonesia is doubling its 2028 bioethanol-blending target to 20% to cut oil imports. Ethiopia's securities exchange approved 11 new listings, with one expected next week. Air Asia Group shares plunged as much as 21% to the lowest in almost four years on a route absorption report. China's gas demand outlook is clouded by Guangdong's power shift, where electricity market reforms could herald a broader change. India has Wall Street CEOs but a leadership gap at home, with Indian-born bankers leading global financial giants. Indian state-owned refiners are facing significant supply uncertainty over Russian oil. Tata Sons' board met amid an RBI IPO directive and leadership uncertainty, discussing whether outgoing Chairman Natarajan Chandrasekaran should be asked to stay.
Europe & UK
The FTSE 100 rose ahead of the BOE rate decision, with the pound and stocks stronger as traders awaited the Bank of England's move. Next, seen as a bellwether for U.K. retail, raised its profit forecast after a better-than-expected first half. Morrisons reported its biggest sales increase in more than a year as hot summer weather and the World Cup boosted grocery demand. Volvo Car plans its largest-ever product push, rolling out seven new models. The EU asked China to voluntarily limit hybrid car exports as cheaper Chinese vehicles flood the European market. Extreme weather wiped out about 3.1mn tonnes of potatoes worth up to €620mn, triggering a shortage across Europe. A cross-party group of MPs urged the UK energy department to drop "net zero" from its name, saying the term has become a "lightning rod for opposition to climate action." UK Prime Minister Keir Starmer is considering a plan to give mayors greater oversight of water companies through nine regional bodies. Sazerac is in talks to acquire German schnapps maker Berentzen-Gruppe AG. KKR emerged as preferred bidder for Portuguese packaging maker Logoplaste. A court barred Ardagh Holdings from selling its metals packaging unit. The European Union offered to make Canada its first "associate member" as U.S. ties weaken for both, while E.U.-Canada ambitions face a reality check as Trump bristles. Trump's strategy toward Canada backfired, driving the nation toward the European Union instead of U.S. annexation.
Deals & Corporate
Apollo Global Management is in talks with SoftBank about boosting a loan to $9 billion for OpenAI bets. 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 deal in Venezuela, with the Trump ally's company moving into the country. The Hamm deal marks the latest foray by a western oil producer into Venezuela, and Continental's agreement was signed with Venezuelan state oil company PDVSA. Venezuela is preparing to ship aluminum to the U.S. under a deal with Mercuria, and the aluminum shipment comes as Heeney eyes a gold deal. Berkshire Hathaway is considering increasing its holdings in Japanese trading houses, according to Itochu. Chelsea's owners Clearlake Capital agreed to buy out chairman Todd Boehly and Mark Walter as shareholders, with the deal to sell 25% of the club valued at £950mn. Holtec Nuclear postponed its planned $900 million U.S. IPO, with founder Kris Singh citing a "perfect storm" in the AI sector and market sentiment against data centers denting the flotation. Elham Credit Partners hired former BlackRock executive Stephen Allan for Australia private credit. ION Platform, the Mergermarket owner, cut 20% of staff as pressure mounts on Andrea Pignataro's empire. Morgan Stanley researchers suggested greater disclosures to assess credit risk after the Bathla collapse. The SEC moved to scrap rules governing shareholder proxy proposals. Zillow lost its bid to force Illinois' largest real estate listing provider to share its feed. Strategy Inc.'s flagship preferred security is a whisker away from its original par value after buybacks and a crypto selloff.
Turkey & Emerging Markets
Turkey's market regulator filed criminal complaints against dozens of people over a fund meltdown. Tera Portfoy Yonetimi said two of its funds with a combined 366 billion liras in assets 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. CATL bulls are unfazed by a $100 billion rout and reject "de-CATLization" fears. The Kremlin is pushing wheat exporters to maintain Russia's geopolitical edge as the biggest wheat exporter amid Black Sea disruptions. Severe weather disruptions will amplify food security risks in Asia, potentially risking unrest, a consultancy said. Myanmar deported American businessman Adam Castillo to "preserve" U.S. ties. Trump directed agencies to remove Canadian goods from government purchases. Trump lifted Venezuela's narco status and said Colombia may follow. The U.S. passed a sanctions bill targeting importers of Russian oil, authorizing tariffs of up to 100% on buyers of Moscow's crude. The U.S. is pressuring Mexico to box out China's AI hardware exports, while a landmark crypto bill failed a procedural vote. The Trump administration is moving to boost biofuel exports and target foreign restrictions.
Fed Leadership & Policy
Kevin Warsh finds his feet as Fed chairman, with a clearer reaction function a fine substitute for forward guidance. Warsh's inflation fight calmed markets as global bond yields retreated. Bond traders are signaling growing confidence in Warsh's credibility.
Technology & AI
OpenAI disclosed six new incidents of "concerning" AI behavior and released a framework for reporting them. OpenAI also shared more safety incidents and adopted new rules, hoping to inspire competitors to greater transparency. A Deep Mind offshoot is nearing a $4bn valuation just a month after founding, with researchers leaving Big Tech's London lab close to raising $700mn. AI leaders' safety push sparked an internal rift at OpenAI and Anthropic as staff grapple with how to turn AI slowdowns into policy. The coming AI safety talks will not save us, a former U.S. AI diplomacy envoy warned. "Recursive self-improvement" is the idea that terrifies AI doomsayers. At a private event, dozens of business leaders cited the AI safety threat as a top concern. An AI out-of-office reply cost one company $10,000 a day. Marketers are navigating build-or-buy decisions in the AI era. Investors are piling into brain-computer interfaces, with $1bn invested in 2026. 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. An AI antitrust exemption would invite collusion, the WSJ argued. Al Gore downplayed AI threats and touted its climate potential. The AI boom is driving a hardware resurgence in Silicon Valley as venture capital flows into "deep tech." 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. Markets were signaling discomfort about Apple even before the latest wave of AI worries. A Citi survey raised questions about Meta glasses sales claims. The AI sector's evolution from sci-fi to agentic workflows was surveyed in sell-side research. A brief survey of sell-side scribbling captured the mood at the end of the world. Moonshot capitalism is rewriting the VC playbook as start-ups attract billions pursuing long-shot bets. China tightened overseas travel controls as part of a First FT newsletter that also covered U.S. mega-donors backing Republicans. U.S. mega-donors overwhelmingly back Republicans, FT analysis showed.
Banking & Finance
HSBC is axing a $38,000 school fee perk for new Hong Kong bankers, a longstanding subsidy used to attract senior staff to the Asian financial hub. Thousands of Barclays staff are revolting against a three-day office mandate, pushing for exemptions for employees with longer commutes. Hackers demanded Revolut pay a $3mn ransom after a data breach, with a group calling itself iamnotavillain threatening to sell customer data. St James's Place is adapting to the AI wealth shift and should soon focus on growth rather than historic issues. Congressional Democrats took aim at private equity's role in medicine, with a bill backed by Sen. Warren and Rep. Ocasio-Cortez closing "loopholes." The House held Leon Black in contempt over Epstein subpoenas after the billionaire refused to appear for a deposition. Big Law partners are turning real estate developers in the Algarve, exemplified by London lawyer Neel Sachdev's side quest.
Health & Pharma
A "life-changing" breast cancer drug was made available on NHS after a UK-US drug deal, with Enhertu previously rejected on cost grounds now approved. Human brain tissue was grown in mice for the first time using a new genetic engineering technique. Oura will struggle to justify its pulse-racing $16bn valuation, needing more than celebrity endorsements. A salary stand-off delayed the abolition of NHS England, with health leaders urging ministers to set up a temporary body.
Energy & Environment
A House bill taking aim at data center electricity costs passed, directing state regulators to consider rules requiring data centers to pay more. Permitting reform is needed as electricity demand is projected to rise. Surging energy costs split companies over whether to raise prices now. The Hormuz crisis threatens to undermine long-term LNG demand growth as soaring prices drive a search for alternatives in key Asian markets. Rising temperatures contributed to the disaster by destabilizing permafrost before Himalayan floods, a report found. The Trump administration moved to gut a core Endangered Species Act protection through an internal memo. Fuel riots spread around the world as Trump approved a $2.8 billion arms sale to Israel. Kathy Hochul sent out $1 billion in "energy rebate checks" after accusing Trump of a "campaign bribe."
Real Estate & Housing
Lennar trimmed its delivery outlook on rate pressure and housing market conditions, expecting full-year deliveries of between 80,000 and 82,000 homes. The zero-risk society has arrived, with the U.S. having achieved dominance by taking big chances. The wedding guests' guide to saying no notes flights and hotels are now customary expenses beyond gifts.
Automotive & Transport
United and American Airlines warned of capacity cuts amid a fuel cost surge. The House mandated AM radio in new cars, defying automakers, with the bill heading to expected Senate passage. Japan has good reason to welcome driverless taxis amid a driver shortage. The auto and transport roundup covered Union Pacific, United Airlines, J.B. Hunt Transport Services and others. Ferrari aims for ocean-racing records with Hypersail, using technology developed for its cars to build a "self-sufficient" 100-foot yacht. 11th Hour Racing pushed sustainability rules in the Ocean Race, introducing gender equality and ocean protection initiatives. Women sailors are challenging old-school maritime culture, though a significant gender gap remains. Sailing technologies are proving their value beyond the marine sector through cross-industry collaboration.
Retail & Consumer
Amazon boosted minimum pay for U.S. full-time core operations staff to $20/hour, a $1-per-hour increase for front-line workers. Reckitt, the maker of Lysol and Mucinex, expanded U.S. manufacturing amid global pressures. Dash Water's co-founder discussed early mistakes, including a contaminated first trial batch. Alexandre Arnault, son of luxury boss Bernard Arnault, joined Nike's board amid a sales slump. Dario Vitale, the ousted Versace designer, landed at Emporio Armani as creative director, with his sole Versace collection becoming almost mythic in fashion circles. The Italian designer was appointed to lead Emporio Armani amid ongoing restructuring.
Media & Entertainment
Vue is exploring a London IPO after a record box office summer, with owners of the European cinema chain looking to capitalize on the blockbuster season. Fox is revamping Outkick following the exit of founder Clay Travis. Ed Sheeran's tour turned into a clash over Palestinians and antisemitism, with four supporting acts dropping out citing free speech. Patriots owner Robert Kraft made it clear to Sheeran he would cancel his involvement in a 40-minute phone call that left the tour hanging by a thread. Julia Louis-Dreyfus returned to Broadway after 40 years, driven by a "terrifying" desire to return to the stage. Peter Max, the trippy artist of the counterculture era, died at 88, having become fabulously wealthy from work that breathed the spirit of the 1960s. Annie Dillard, meditative author of "Pilgrim at Tinker Creek," died at 81, her Thoreau-like account published when she was.
Geopolitics & Policy
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. U.S. intelligence warned of China theft over the sale of F-35 jets to Saudis, according to internal reports including one from the Pentagon's Defense Intelligence Agency. The U.S. indicted a Russian assassination network, alleging a former Russian intelligence officer ran a global operation. The U.S. probed an Iran link to cyberattacks on energy tankers in the Strait of Gibraltar bound for the U.S. The Houthis and Saudis traded claims of military attacks as conflict escalated, with the Houthis claiming to down a Saudi F-15. Yemen's Houthi militia controls key shipping routes, demonstrating that geography is power. Israel wants more one-ton bombs from the U.S., with the Trump administration planning to deliver 60,000 of the powerful munitions. Trump imposed visa restrictions on some South Africans over claims of anti-white discrimination. The Trump administration outlined a plan for warning signs outside the Smithsonian Museum, detailing what it hoped to convey on 12 signs. 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. Nick Candy, the Reform UK treasurer, won mining rights in Nicaragua days after meeting the dictator's son Laureano Ortega. A corruption case spawned memes and indignation among Ukrainians after a colorful undercover recording drew attention to graft worries. Kim Jong-un's power rests on the brutal exploitation of North Koreans, according to a New York Times investigation. Turkey began a broad crackdown on the LGBTQ community, calling it an effort to protect families. The GOP's neo-Nazi problem is deepening as the Republican fringe becomes the mainstream. Bo French, an anti-Muslim hard-liner, faces backlash over posts about University of Texas students. Democrats met with El-Sayed, putting aside rifts ahead of midterms. Aaron Guckian won the GOP nomination for Rhode Island governor. Takeaways from a wild primary season captured the good, bad and bizarre from the battles that helped set the midterm field. A judge ordered Mamdani to turn over communications with the rent board as landlords seek to invalidate a vote to freeze rents. The Senate took up a bill to regulate the "Wild West" of collegiate sports, with critics arguing it would limit athletes' rights. The U.S. fast-tracked the deportation of Ecuadorean politician José Serrano despite torture fears. Texas' abortion ban was blamed in a pregnant woman's death in a lawsuit claiming state officials created a climate of fear. Billions in taxes go unpaid and under Trump the IRS won't say how much, with the absence of the annual tax gap estimate making it harder to gauge. Trump barred some South Africans over claims of anti-white discrimination.
Los Angeles Helicopter Crash
A news helicopter crash in Los Angeles underscored the risks of aerial reporting as swarms of news helicopters traverse Southern California. The fatal crash of a news helicopter brought to light a sky full of hazards. A journalist and pilot were on board when the NBC4 news helicopter crashed. The helicopter crash and a bus accident left at least five dead when an SUV broadsided a bus and then a helicopter crashed back to back.
Science & Space
A new simulation suggests little red dots seen in photos may be an early black hole stage, with massive black holes possibly starting as these compact objects. A SpaceX IPO gave a couple license to chase their dreams, quitting their jobs and budgeting $25,000 a month for a year of fun.
Other Markets
The U.S. passed a sanctions bill targeting importers of Russian oil, with Trump expected to sign the measure authorizing tariffs of up to 100% on buyers of Moscow's crude. The tech, media and telecom roundup covered OpenAI and Soitec in the latest Market Talks. The morning risk report covered a landmark crypto bill that failed a procedural vote, casting doubt on new digital-asset rules. Venezuela prepared to ship aluminum to the U.S. under a deal with Mercuria and Heeney. The Farage-linked Stack BTC bought Direct Bullion for $12mn, extending the "Farageverse." A First FT newsletter covered U.S. mega-donors overwhelmingly backing Republicans and the European Commission president endorsing Canada's "associate member" status.