Global Markets Shake Off Rate-Hike Jitters

“94% of common HR questions resolved by AI — not noise, proof.” That’s how IBM opens this episode of WSJ What’s News, but the substance is elsewhere: global markets reacting to a Fed rate hike, a new Russia sanctions bill, ExxonMobil’s potential return to Venezuela, Canada pivoting toward Europe, and a midterm primary postmortem where AI emerged as a real campaign issue.

Markets Shrug Off a Hawkish Fed

The Federal Reserve raised rates by a quarter point, as expected, but the surprise was the tone. Fed Chair Kevin Warsh signaled he is serious about fighting inflation and will keep raising rates. Markets initially slumped but rebounded the next day: U.S. stock futures rose, global equities climbed, and bond yields fell. General finance editor Alex Frangos explained the logic: investors were relieved that Warsh is “growing into the role as a much more traditional communicator” after a hands-off approach in June that rattled confidence. President Trump added to the mix, saying the U.S. should have 1% rates and that he spoke with Warsh beforehand — unusual direct communication between a president and Fed chair. But Trump also said he let Warsh do what he wanted, which Frangos noted gave investors relief that Warsh is not simply a Trump puppet. The Bank of England and Bank of Japan decisions were next up, with the Fed’s move raising the pressure on other central banks to respon