Central Banks Raise Rates as Warren Buffett Leaves Berkshire

Global financial markets experienced significant volatility on September 18, 2026, as central banks took aggressive measures to curb persistent inflation. The Federal Reserve System implemented its first rate hike in over three years, raising the federal funds rate by a quarter of a percentage point. Simultaneously, the Bank of Japan raised its benchmark interest rate to 1.25%, a 31-year high. Despite these moves, the Japanese yen suffered its largest daily slide since February.

Market reactions were mixed across different regions. Asian indexes rose, with South Korea's Kospi jumping 2.7% and Japan's Nikkei gaining 1.4%, while European benchmarks including the CAC 40 and FTSE 100 slipped. In the United States, the 10-year Treasury yield climbed toward 5%. Oil prices retreated toward $103 per barrel following reports that China requested Iran's help in reigning in Houthi militants, easing some pressure after a war with Iran had previously pushed Brent crude toward $110 per barrel.

In corporate news, Warren Buffett stepped down as chairman of Berkshire Hathaway to become chairman emeritus, effective immediately. Berkshire Hathaway stock slipped following the announcement. Additionally, Nucor Corporation issued a third-quarter profit forecast that failed to meet analyst expectations.