The People's Bank of China set the yuan midpoint at 6.7580 on September 17th, marking an increase of 48 basis points. This adjustment brings the yuan to its strongest level since February 3rd, 2023.

In a significant policy shift, the Federal Reserve announced its first interest rate increase in three years, raising the benchmark rate by 25 basis points to a range of 3.75%-4.00% on Wednesday. This marks the first hike since July 2023. Newly appointed Fed Chair Warsh emphasized during a post-meeting press conference that recent inflation data has not shown any notable improvement in underlying price pressures. The latest "dot plot" projections have also shifted considerably toward a hawkish stance, with a majority of officials signaling the likelihood of at least one more rate increase before the end of the year.

In a separate development, President Trump reiterated his call for the Federal Reserve to swiftly lower interest rates, suggesting that the U.S. rate should be at or below 1%. Trump argued that reducing borrowing costs would support economic growth in the United States.