1) Janet Yellen warns of recession if U.S. faces a default
Treasury Secretary Janet Yellen warned that the U.S. economy would fall into a recession if Congress fails to raise the debt ceiling before a default on the U.S. debt on October 18, 2021. For weeks, she had warned the Congress that the U.S. will no longer be able to honor its debts on the deadline. The wayout is raising the ceiling or suspending it.
2) Mark Zuckerberg denies the accusation of profits over safety
Facebook CEO Mark Zuckerberg denied the accusation from a whistleblower Frances Haugen that the company prioritizes profits over the safety of its users. The story had been reported and published through the Wall Street Journal for nearly a month.
3) New Zealand raises policy rate to 0.50%
New Zealand’s central bank raised interest rates for the first time in seven years by 25 basis points to 0.50% in order to cool its domestic economy and rising housing market. The central bank also signalled further tightening to come.
4) U.S. oil rises to highest since 2014
Brent crude oil futures hit a three-year high on Wednesday while West Texas Intermediate closed the highest since 2014. Brent rose 1.6% to $82.56 per barrel and WTI gained 1.7% to close at $78.93 per barrel.