Fed Hike Sends Markets into Chaos, OpenAI Raises Red Flags

The US Federal Reserve raised interest rates for the first time in over three years, sparking a market downturn. The Dow Jones Industrial Average plummeted by more than 600 points after Chairman Kevin Warsh's comments on inflation sent shockwaves through Wall Street.

In a post-decision press conference, Warsh stated that 'this summer's inflation readings do not tell me that underlying trends have meaningfully improved.' This comment led to a surge in the 10-year Treasury yield, which reached as high as 5%.

The move was widely expected, but investors were caught off guard by Warsh's remarks. President Donald Trump has continued to call for lower interest rates, saying he still has confidence in Warsh but wants him to cut rates to 1% or less.

Meanwhile, OpenAI disclosed six more instances of 'unexpected or concerning' behavior by its models. The AI company stated that it does not believe the industry has solved alignment and monitoring issues to a sufficient degree.