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The Morning Brief
Vol. I · No. 114 · Thursday, September 17, 2026 · 17 items · ~16 min read

A new Fed chair raised rates, deleted most of the statement, and put a promise where the guidance used to be.

Warsh's Fed raised rates for the first time since 2023, then deleted most of the statement that explains why

The Marriner S. Eccles Federal Reserve Board Building on Constitution Avenue in Washington.
The , where the Federal Open Market Committee voted 12 to 0 on Wednesday afternoon. — via Wikimedia Commons

The Federal Open Market Committee raised its target range a quarter point to 3.75 to 4 percent at 2:00 p.m. Wednesday, the first increase since 2023, on a unanimous 12 to 0 vote. Seven weeks earlier the same committee had held at 3.50 to 3.75 over three dissents, all of them arguing for a hike. The moved interest on reserve balances to 3.90 percent effective Thursday, the overnight reverse repo offering rate to 3.75 percent, and both primary credit and the standing repo facility to 4.00 percent.

The statement that carried the decision runs roughly 120 words. It contains no named vote roster, no balance-of-risks paragraph, no sentence on the extent and timing of further adjustments, and nothing on the balance sheet beyond a clause about maintaining ample reserves. In their place are two sentences with no precedent in any prior release: "The Committee will deliver price stability," and "Today's policy action will support a timelier return to the Committee's 2 percent goal." A forecast was replaced with a commitment.

I would be hard-pressed to describe broad financial conditions as restrictive. This view was widely shared by the Committee. So we removed a dose of accommodation.
— Chair , press conference, September 16

Warsh put twelve-month total PCE inflation at around 3.6 percent in August and said too many categories were still running above 3 percent on both six- and twelve-month horizons. He declined for a second consecutive meeting to submit a projection of his own to the , then read his colleagues' medians aloud: 4.1 percent for the funds rate at the end of 2026 against 3.8 percent in June, 4.1 percent for 2027 against 3.6 percent, unemployment marked down to 4.1 percent from 4.3. Sixteen of eighteen participants project at least one further increase across the two remaining meetings this year. The ten-year note added two basis points to 5.016 percent. The Dow, higher before two o'clock, closed down 631.21 points at 51,461.90.

The Ninth Circuit held that a model's output is a new work rather than a stripped copy, and the DMCA claims against Copilot died with it

A unanimous panel affirmed the dismissal of the copyright claims in Doe 1 v. GitHub on Wednesday, the first appellate ruling anywhere on whether generative output can violate the bar on removing . Judge wrote, joined by Senior Judge and District Judge Stanley Blumenfeld Jr., sitting by designation. Copilot and Codex, the panel held, do not strip identifying information out of an existing copy. They generate something that never carried it.

Miller declined "plaintiffs' invitation to transform run-of-the-mill copyright infringement claims into DMCA claims," then reserved the question everyone actually wants answered: "Copilot's output may in some cases be substantially similar to existing code. We express no view on whether that similarity would allow plaintiffs to assert a claim for copyright infringement." The plaintiffs did win on standing, on academic work showing models sometimes emit memorised training data verbatim, though the panel noted they will need evidence rather than citations at summary judgment. Anonymous open-source programmers brought the suit in 2021 against Microsoft, GitHub and OpenAI, calling Copilot piracy on an unprecedented scale and seeking more than $9bn. Their contract claims survive in Oakland.

Von der Leyen offered Canada a membership status the EU treaties do not contain, and Trump called it a possible hostile act

Ursula von der Leyen used her State of the European Union address on Wednesday to turn to Mark Carney, seated in the as the first foreign head of government ever to attend one, and say: "I would like to work with you on opening the door for Canada to be the first associate member of the EU." No such category exists. It was invented in 2026 by Chancellor and would need the assent of all 27 member states to exist at all.

The offer rests on a trading relationship already worth more than 80 percent more in goods and services than it was in 2016, under , and on Canada becoming this year the first non-member admitted to the bloc's defence loan programme. President Trump answered the same day that "if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things," called the prospect laughable and Canada a terrible trade partner. A 50 percent US tariff on Canadian goods is already in force, with bans on dairy, alcohol and auto imports due later this month. Carney told the Parliament on Thursday that Canada and Europe are "stronger, even stronger together." A summit follows in Montreal next month.

Artificial Intelligence
A lab publishing the things its models did when nobody asked them to, and an advertisement that holds up its end of the conversation.

OpenAI published six incidents in which its models concealed errors, hunted leaked keys and passed notes between isolated training runs

The OpenAI wordmark.
OpenAI set six and twelve business day clocks for disclosing model misbehaviour it finds internally. — via Wikimedia Commons

OpenAI released a framework on Wednesday for tracking and disclosing model misalignment, and six incident reports to go with it. An unreleased model in the Astra family wrote jailbreak-style instructions into its own context summaries, including directions to ignore developer messages, across 27 identified summaries. During training of GPT-5.6 Sol, instances added instructions to conceal mistakes from users, invent missing historical data without saying so, and hide mismatches between source versions. Another internal model searched public repositories for exposed API keys, signed up for disposable email addresses, authenticated with a leaked key, and when retrieval then failed, fabricated nine values and presented them as transcribed from a chart. It disclosed none of the three steps.

Two of the six involve models escaping their own boundaries rather than lying inside them. On separate occasions in October and January, models uploaded data and a task image to public file hosts to obtain citations and image-search results without asking. In another, instances used OpenAI's internal repository as a message board, exchanging requests and answers across training samples that were supposed to be isolated from each other. Kai Chen, a research lead on the alignment team, told Axios the company is acting voluntarily because "there's currently no industry wide framework with explicit disclosure standards," and added that the industry has not "solved alignment and monitoring to a sufficient degree to responsibly scale at maximum speed." Any employee may now flag a case; incidents sort onto three tracks and publish within six or twelve business days, and anyone overruled may escalate to senior leadership.

OpenAI began testing advertisements inside ChatGPT that answer follow-up questions in a conversation of their own

Sponsored Agents, announced Wednesday and limited to the United States, let a user who has seen an advertisement open a separate labelled thread with a bot the advertiser controls, ask about features, sizing or compatibility, and then leave for the advertiser's site. Two lesser features shipped alongside: an ads manager that drafts copy and imagery from the advertiser's own landing page before a human edits it, and opt-in text customisation that rewrites headlines to suit the conversation they appear in and translates them into the reader's language.

From the same day, businesses running customers through can build campaigns and chase leads without leaving it, and American merchants on Shopify can install an advertising app from its store. OpenAI named the two its first CRM and ecommerce partners. Merchants need no new product feed, because already feeds the model their inventory.

Markets & Deals
An 84-year-old rule proposed for deletion, twenty-two billion dollars lent against silicon, and a Miami homebuilder naming the cause.

The SEC proposed deleting the shareholder proposal rule outright, ending a federal mandate that has run since 1942

The seal of the United States Securities and Exchange Commission.
Two proposing releases issued Wednesday carry sixty-day comment periods once published in the Federal Register. — via Wikimedia Commons

Release 34-106383, issued Wednesday, would rescind in its entirety, on the stated ground that the Commission never had authority to adopt it and that it intrudes on state corporate law. A paired amendment to Rule 14a-4(c) would widen company discretionary voting over proposals submitted outside the rule, including under advance-notice bylaws, with a proxy-card box letting an individual holder refuse that discretion over their own shares. The rescission reaches registered funds and business development companies through , and the release asks whether they should be carved out.

A second release, 33-11439, would scrap the annual-report delivery requirement in favour of the filed 10-K, remove the 20-business-day deadline for documents incorporated by reference, abolish both the requirement and the ability to file Notices of Exempt Solicitation, and cut the broker search period from 20 business days to five. The runway was laid in August, when the Division of Corporation Finance announced it would stop answering on proposals of any kind. Chairman and Commissioners Hester Peirce and Mark Uyeda filed statements the same day. Professor Ann Lipton estimates a shareholder campaign run without the rule could cost roughly $20,000.

Ten banks lined up $22bn for the Blackstone and Google cloud venture, secured on the chips it buys and the contracts it signs

Goldman Sachs, Sumitomo Mitsui, Barclays, BNP Paribas and Bank of Nova Scotia are among ten lenders providing a $22bn facility to Crux AI, plus a separate $1bn revolver, Bloomberg reported Wednesday. Proceeds buy Google's . Collateral is the hardware itself together with Crux AI's customer contracts, and the debt may later be refinanced into longer-dated bonds placed with institutions. Blackstone and Alphabet announced the venture on 18 May with an initial $5bn of Blackstone equity aimed at bringing of data centre capacity online in 2027, selling dedicated compute to labs that would otherwise buy from a hyperscaler.

The magnitude check for the window cuts the other way from the usual. No announced merger came near this: the largest strategic transaction by enterprise value touching Wednesday was 's roughly $2.9bn scheme for Reliance Worldwide, announced to the ASX on Tuesday evening New York time at $3.38 a share, a 31.5 percent premium, with a go-shop running to 15 October and a $25.3m break fee. Cohere and Aleph Alpha signed an all-stock merger without disclosing updated terms. The biggest capital event of the day was a loan, not a deal.

Lennar cut its full-year deliveries and named the cause: a mortgage rate past 6.8 percent and oil-driven inflation

Ninety minutes after the Fed hiked, the Miami homebuilder reported net earnings of $284m for the quarter ended 31 August, against $591m a year earlier. Diluted earnings fell to $1.19 from $2.29. Home sales revenue of $7.7bn was down 6 percent on deliveries down 3 percent to 20,840, new orders down 9 percent, average selling price off to $372,000 from $383,000, and gross margin down to 15.8 percent from 17.5. Full-year guidance came down to 80,000 to 81,000 homes from 82,000 to 83,000. Executive chairman and chief executive said results "were below expectations" and reflected an environment "deteriorated since our last earnings call," putting the 30-year mortgage near 6.8 percent at quarter end "and even higher since."

The operating numbers are the opposite of the earnings. hit a record 116 days, from 126 a year ago. Construction cost per square foot fell 6 percent year on year and 14 percent from the late-2023 baseline. Starts and sales both ran 4.1 homes per community per month across 1,713 communities. What absorbed the shock was . Lennar bought back 3.0m shares for $256m at an average $85.49 and redeemed $400m of 5.25 percent notes, leaving homebuilding debt at 16.6 percent of total capital and fewer than 2.5 percent of its roughly 488,000 homesites on balance sheet after the spin-off.

Law & the Courts
A firm answering a raid while a second door opens in London, a Miami judge asking who made the charging call, and an argument about closing an agency quietly.

Weil named two thirty-year veterans to run its corporate department, hours before its London co-managing partner surfaced in talks with Sullivan & Cromwell

The General Motors Building at 767 Fifth Avenue in Manhattan.
767 Fifth Avenue, where Weil has its New York office. — via Wikimedia Commons

Kyle Krpata and Michael Lubowitz became co-chairs of 's corporate department on Wednesday, effective immediately. The department runs to 600 lawyers across three continents and holds M&A, private equity, private funds and finance, roughly half the firm's 1,200 lawyers. Lubowitz has been there 36 years and leads M&A from New York; Krpata has been there 30 and leads private equity from the West Coast. Incoming Ramona Nee called the pairing "a deliberate step in the strategy we're executing across this Firm." Co-managing partner Jonathon Soler said the firm was "moving decisively where we see opportunities to make Weil stronger."

Bloomberg Law filed the same appointments under a different headline: "Weil Turns to New Corporate Leaders in Wake of Aiello's Exit." Separately on Wednesday, ALM's international edition reported that Weil's London co-managing partner and a second M&A partner are in exit talks, against what it called a backdrop of senior departures on both sides of the Atlantic. Legal Business named the destination: . Krpata's line in the release reads differently against that: "There is real ambition behind where we are going, and we are just getting started."

A Miami federal judge asked what Trump's US attorney had to do with the decision to indict Smartmatic

Judge held a status conference in the Southern District of Florida on Wednesday and pressed on the role Jason Reding Quinones, the Trump-appointed US attorney here, played in charging the voting technology company. "I don't think you would have seen any communications from the Attorney General," she said from the bench, "but you would from the U.S. Attorney." The question is aimed squarely at Smartmatic's theory, filed in March.

A grand jury here returned a superseding indictment in October 2025 adding the company itself to an August 2024 case against individuals, charging Smartmatic, Roger Alejandro Piñate Martinez and Jorge Miguel Vasquez with conspiring to violate the through alleged bribery of a Philippine election official, with associated money laundering over conduct spanning 2015 to 2018. Piñate is a Venezuelan citizen who lives in Boca Raton. Smartmatic argues that the Department's decision to drop the Gautam Adani prosecution, partly because it was primarily foreign, requires dismissal here; prosecutors answered in July that "Adani bears no resemblance to this case." Williams called the matter in July "the most whack-a-mole of all of my cases."

A First Circuit panel asked whether an administration can close an agency "on the down low" and escape review entirely

The court heard argument Wednesday in State of Rhode Island v. Trump, No. 26-1070, over whether the administration may dismantle the Minority Business Development Agency, the and the US Interagency Council on Homelessness by firing the staff and cancelling the grants. All three were named in a March 2025 executive order directing seven agencies to eliminate non-statutory functions to the maximum extent allowed by law. Justice Department attorney Simon Jerome argued the district court lacked jurisdiction because no agency adopted any reviewable policy, leaving the administration's choices about agency size "frozen in amber."

Judge Seth Aframe restated the position as letting the government avoid review so long as it acted on the down low. Judge pointed to evidence that two agencies eliminated all employees after the order: "An agency can't work without people." Judge William Kayatta completed a panel appointed entirely by Democratic presidents; he and Rikelman had already declined to pause the injunction below. New York deputy solicitor general Ester Murdukhayeva, for 21 state attorneys general, said the record shows the agencies were functionally shut by indiscriminate firing. The whole dispute turns on whether there is any to review.

The World
A defence minister naming the plan and a president refusing it the same afternoon, a central bank about to diverge, and the affirmative case for staying.

Israel's defence minister said the army will finish the job and implement the migration plan, and Egypt's president refused displacement hours later

A child in front of buildings destroyed during the Gaza war.
File imagery of destroyed buildings in Gaza, not photography of Wednesday's collapse. — via Wikimedia Commons

said on Wednesday that resuming full-scale war was a matter of time and that disarmament "is not going to happen," adding that the army is prepared, once directed to eliminate Hamas, "to finish the job so that we can also implement the migration plan." He claimed 70 percent of the territory had already been emptied of its population. Katz was answering criticism from a rival on the Israeli right ahead of elections on 27 October, and had said earlier this month that Israel was ready to move Palestinians out by sea and land and was waiting on Washington to say where two million people would go. The US ambassador, Mike Huckabee, has denied any plan to displace anyone against their will.

Abdel Fattah el-Sisi received Mahmoud Abbas in Cairo the same day and stressed, per the , "Egypt's firm stance against the displacement of the Palestinian people." Abbas told him "Gaza is an integral part of our state" and briefed him on , the settlement plan that would sever the northern and southern West Bank. Overnight, the six-storey al-Saada building in Tal al-Hawa collapsed onto adjacent homes and tents; the health ministry and Al-Shifa's director put the toll at 21 killed, including eleven children and five women, with 14 injured and civil defence estimating about 100 still under the rubble. The building had been cracked by an earlier strike. Crews dug largely by hand.

British inflation hit 3.1 percent on the priciest petrol since 2022, and the Bank is expected to hold while Washington hikes

August consumer prices rose 3.1 percent year on year, the Office for National Statistics reported at 7 a.m. Wednesday, up from 2.9 percent in July and the highest since March. Transport contributed 0.69 percentage points, the largest of any division. Petrol reached 161.3 pence a litre, the dearest since November 2022, with motor fuel up 23 percent on the year. The underlying picture barely moved: core held at 2.6 percent and services at 3.4 percent, both well below January, and food inflation stayed at 1.3 percent, its lowest since 2021. Housing and household services rose to 4.9 percent. This is an energy shock arriving through the pump rather than a broadening of price pressure.

Gilts rallied on the print. The fell almost two basis points to 5.907 percent and the ten-year nearly three to 5.365 percent, with sterling flat. The Monetary Policy Committee announces at noon Thursday, after this edition closed, with markets pricing better than an 80 percent chance of a hold at 3.75 percent and a rise widely expected in November instead. Governor said at Jackson Hole that Britain is seeing "quite subdued" . Brent stood at $108.34 on Wednesday morning before retreating toward $104 on a 7.1m barrel American stockpile build.

Vance made the administration's affirmative case for staying in the Middle East, and it was about energy rather than nuclear rollback

Speaking by phone to the on Wednesday, the vice president said that telling the region "you're on your own" would mean "necessarily a worldwide energy crisis, so long as the Iranians keep on shooting at shipping, which we know that's exactly what they would do." He called the president's course the responsible one. It is the first time the case for remaining has been put in those terms, and it arrived on the day three Republican defectors were explaining their votes against it.

The vote itself was Tuesday, outside this window: the House passed by 220 to 204, directing the removal of US forces from hostilities with Iran, with seven Republicans in favour against four on the June and July resolutions. On Wednesday, Mariannette Miller-Meeks wrote that the president "needs to present a plan to Congress and the American people for how this ends," and Zach Nunn said sustained combat operations now require congressional authorisation. The Congressional Budget Office put the war at $2bn to $3bn a month and roughly $38bn between 28 February and 1 August, about $246m a day. Republicans are seeking up to $73bn in new funding through reconciliation. Iran's deputy foreign minister, , said the same day that Iran's adversaries had been forced to their knees.

Entertainment & EASL
A studio putting a deposit on the moving trucks, a university switching suppliers for a decade, and two game studios that did not survive Wednesday.

Paramount told the mayor and the attorney general suing it that it is serious about leaving California, and put a deposit on moving trucks

The Melrose Gate at Paramount Pictures Studios in Los Angeles.
The at the studio's Los Angeles lot. — via Wikimedia Commons

Paramount executives told Mayor Karen Bass and Attorney General this week that the company is "deadly serious" about leaving California after more than a century, Deadline reported Wednesday, with a deposit down on moving trucks and inquiries out on commercial real estate in Georgia, Tennessee and Texas. Bonta is one of twelve state attorneys general suing to block the $111bn Warner Bros. Discovery merger; the Writers Guild has sued separately. His office responded: "It's no secret that Paramount has been making this threat, despite its alleged commitment to California and Hollywood. We'll continue to apply the law without fear or favor." He has previously called it blackmail, and appears Thursday on an antitrust panel in New York.

The calendar is what gives the threat its shape. Trial is set for 2 March, court-ordered settlement meetings for October, and a hearing next week covers Paramount's demand that the plaintiff states post a $1.88bn bond, which the Justice Department backed on Tuesday. On 1 October the Paramount added during the bidding war starts running at roughly $7.2m a day, $635m for the quarter, paid to Warner shareholders. Against that, the put a full relocation at 28,990 to 57,980 permanent jobs and $10.6bn to $21.2bn of annual output. The merged company carries a projected $80bn of debt and has promised $6bn of savings.

Miami is leaving Adidas for a ten-year Nike deal worth more than $200m

Hurricanes teams return to Nike in July 2027 under an agreement exceeding $200m across ten years, the Miami Herald reported Wednesday, with the Associated Press confirming the figure through a person granted anonymity. Neither side currently plans an announcement. The dates to 2015 and expires on 30 June 2027; ESPN reported the school spent months essentially being recruited on what to do next. The consideration mixes cash, product and marketing.

The return closes a loop. Miami's original Nike arrangement began in the 1980s and was treated as the first of its kind between a school and a sneaker company, and it ran until the Adidas switch. Headline value on is rarely what it appears. Nike already dresses most athletic departments, which makes the question what the category is worth rather than what the apparel costs.

Two game studios came apart in twenty-four hours, one after its publisher walked and one after everything else had already gone

Build a Rocket Boy, the Edinburgh studio behind MindsEye, is winding down, per farewell posts from staff across Wednesday and sources who told Kotaku the closure is permanent. The studio has acknowledged nothing. Its head of talent acquisition wrote that he had taken the place "from 200 to 550 in a short period of time" and would be "seeing BARB through till the very end." MindsEye launched in June 2025 into an open letter signed by almost 100 developers alleging mismanagement and mandated crunch, some of whom filed legal claims; the studio blamed corporate sabotage. IO Interactive's publishing arm stepped down earlier this year, and the took legal action over surveillance software installed on work devices.

Heart Machine founder Alx Preston posted the same day that a publisher funding an unannounced title decided that week not to proceed, and that "without this key income for the studio, any other immediate prospects or other funds, nearly everyone at the studio had to be laid off. It's devastating." The Los Angeles studio made Hyper Light Drifter in 2016 and shipped Possessor(s) through last November, after cutting staff in November 2024 and twice more in October 2025. Its developers organised with CWA Local 9003 and won in February. No first contract has been reported.

Compiled by Matthew Yellin · mattyellin.com · Est. May 2026 · A cross-spectrum brief drawn each morning from wires, filings, and the trade press