Fed hikes rates, Canada EU, AI leaders divided (Updated)
episodePreviously titled “AI leaders divided, Kennedy Center, Montana and Lebanon” — renamed by the publisher on Sep 16, 2026
Transcript
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Why did the Federal Reserve raise interest rates despite President Trump's calls for cuts?
Hi, I'm Kim Vinnell in Whanganui, New Zealand.
And I'm Christopher Waljesper in Chicago. It's Wednesday, September 16th. Today. The Federal Reserve raises interest rates in an effort to tackle inflation despite President Trump's demands for a cut.
Leaders of the AI world split on how the industry should advance.
The European Union proposes Canada as its first associate member.
And as the end of a UN peacekeeping mission in Israeli-occupied southern Lebanon nears, residents fear for what comes next. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes, seven days a week.
The U.S. Federal Reserve has raised interest rates. The quarter percentage point increase brings the benchmark rate to the 3.75% to 4% range.
What are the main arguments in the AI safety debate between Anthropic, OpenAI and Meta?
Fed Chair Kevin Warsh supported the decision, acknowledging the need to bring inflation under control. The move comes as President Donald Trump has, since he took office, promised to lower rates and pushed for interest rate cuts, though his economic and foreign policy decisions have largely had the opposite effect.
A split is emerging among the most powerful players in artificial intelligence over whether the technology is moving too fast and who is ultimately responsible for keeping it safe. Appearing at a San Francisco tech conference, fresh after penning his essay pleading for the industry to pace its advance, Anthropic's Dario Amode reiterated his concerns.
AI models get smarter and smarter the more compute you throw into them. And so we had a prediction of just how capable these models would be. But I think what we didn't appreciate is that it would lead to these companies growing so fast.
OpenAI's Sam Altman echoing that sentiment.
And we have to be willing to pace our development of capabilities such that capabilities always, such that alignment, safety and monitoring are always ahead of capabilities.
But one of the other AI giants, Meta founder Mark Zuckerberg, is pushing back. In a social media post, he says an industry-wide slowdown isn't needed and that it's up to the individual companies to ensure their technology is safe, adding that Meta already does so. The disagreement comes as concerns grow that AI is advancing faster than humans can keep up with, with some even warning that AI could wipe out humanity in the not-too-distant future.
How could Canada become the EU’s first associate member and what issues does the proposal raise?
I would like to work with you on opening the door for Canada to being the first associate member of the European Union.
Ursula von der Leyen, president of the European Commission, proposing in her State of the Union address that Canada become the EU's first associate member. It would be a new category aimed at deepening ties among ally nations.
We will work on energy-critical minerals and batteries on AI, quantum, cyber, and economic security. This is not a partnership against anyone else, but for our common strength.
The move comes as both the EU and Canada face pressure from Trump's trade policies and an assertive China. The proposal caught even EU diplomats off guard. It's unclear if member states will back the plan and trade obstacles remain, including Canada's protected telecom and dairy sectors. Prime Minister Mark Carney says Canada wants a unique alliance, not membership. Formal talks are set for October.
The US is planning an almost $3 billion weapon sale to Israel. According to an official, the package would include tens of thousands of 2,000-pound bombs, munitions that Israel used in Gaza and Lebanon.
What is the scope of the proposed $3 billion U.S. weapons sale to Israel and its regional implications?
The proposed sale has been informally communicated to members of Congress who review major arms transfers.
To Saudi Arabia now, where Riyadh says it's shot down a Houthi drone near the Muslim holy city of Mecca. The Houthis deny targeting Mecca, calling it Saudi propaganda. Saudi Arabia has launched hundreds of airstrikes in Yemen this week after Houthi fighters attacked Saudi cities and oil infrastructure along the Red Sea. The fighting threatens global energy supplies, Brent crude is hovering near $108 a barrel, and key Saudi pipelines remain offline.
To The Hague now, where former Kosovo President Hashim Taci has been sentenced to 25 years in prison for war crimes.
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Chapters
7 chapters
1
Why did the Federal Reserve raise interest rates despite President Trump's calls for cuts?
0:00–1:06
2
What are the main arguments in the AI safety debate between Anthropic, OpenAI and Meta?
1:06–2:54
3
How could Canada become the EU’s first associate member and what issues does the proposal raise?
2:54–4:19
4
What is the scope of the proposed $3 billion U.S. weapons sale to Israel and its regional implications?
4:19–6:12
5
Why is Montana considering a ban on corporate money in elections and what precedent might it set?
6:12–7:36
6
What will happen when the UN peacekeeping mission in southern Lebanon ends later this year?
7:36–8:27
7
What topics are covered in the upcoming Reuters Econ World episode about Trump’s EV policy?
8:27–10:22
Speakers
5 identifiedMore from Reuters World News
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