Global markets react to US rate hikes and rising geopolitical tensions involving China and North Korea.
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The US Federal Reserve voted unanimously to raise interest rates, rejecting pressure from President Donald Trump to lower them. Trump responded by threatening to end trade with Mexico and Europe, per Al Jazeera. The move signals escalating tensions between the White House and central bank monetary policy.
Across the Atlantic, the Bank of England is expected to keep interest rates unchanged despite rising inflation, according to the Winnipeg Free Press. Meanwhile, oil prices extended losses as fears of Middle East supply disruptions eased, reports Oil & Gas via Reuters.
In the technology sector, China's Huawei announced plans to launch new AI chips in 2027, directly targeting Nvidia's market dominance, Reuters World reported. This development comes as US allies express concern over how Trump might handle Taiwan relations with Chinese President Xi Jinping.
North Korea stated that a US-led arms buildup justifies its expansion of nuclear forces, according to Reuters US. The statement underscores growing military friction on the Korean peninsula.
Sources: 1. Winnipeg Free Press: Bank of England expected to keep interest rates unchanged despite rising inflation — https://www.winnipegfreepress.com/business/2026/09/17/bank-of-england-expected-to-keep-interest-rates-unchanged-despite-rising-inflation (src1) 2.