{"id":53632,"date":"2025-09-25T14:08:44","date_gmt":"2025-09-25T18:08:44","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/"},"modified":"2025-09-25T14:08:44","modified_gmt":"2025-09-25T18:08:44","slug":"global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/","title":{"rendered":"Global Markets Grapple with Fed&#8217;s Rate Target Overhaul, Major Tech Investment, and Rising Geopolitical Tensions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#Monetary_Policy_Under_Review\" >Monetary Policy Under Review<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#TikTok_Secures_Key_US_Investors\" >TikTok Secures Key U.S. Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#Geopolitical_Standoffs_Intensify\" >Geopolitical Standoffs Intensify<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#US_Economic_Indicators_Show_Strength\" >U.S. Economic Indicators Show Strength<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-grapple-with-feds-rate-target-overhaul-major-tech-investment-and-rising-geopolitical-tensions\/53632\/#Government_Shutdown_Looms_Over_Travel_Sector\" >Government Shutdown Looms Over Travel Sector<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Federal Reserve&#39;s Lorie Logan<\/strong> is advocating for a <strong>significant modernization of the interest rate targeting system<\/strong>, proposing a shift to the <strong>tri-party general collateral repo rate<\/strong> to address growing fragility in the fed funds market, a move she describes as technical rather than a policy shift.<\/li>\n<li><strong>Oracle<\/strong> (<a href=\"\/stock\/ORCL\">ORCL<\/a>), <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> Lake<\/strong>, and <strong>MGX<\/strong> are poised to become the primary investors in <strong>TikTok U.S.<\/strong>, collectively securing a <strong>45% ownership stake<\/strong> in the popular social media platform.<\/li>\n<li><strong>Russia and China<\/strong> have formally requested the <strong>U.N. Security Council<\/strong> to hold a vote on Friday on a draft resolution aimed at <strong>delaying the reinstatement of sanctions on Iran by six months<\/strong>, seeking to extend the current pause in diplomatic efforts.<\/li>\n<li>The <strong>U.S. Q2 GDP<\/strong> was revised upward to a robust <strong>+3.8%<\/strong> on stronger-than-expected consumption, with <strong>Goldman Sachs<\/strong> (<a href=\"\/stock\/GS\">GS<\/a>) subsequently boosting its <strong>Q3 GDP tracking to +2.6%<\/strong>.<\/li>\n<li>A potential <strong>partial U.S. government shutdown<\/strong> threatens to freeze air traffic controller hiring and could impose a staggering <strong>$1 billion weekly cost<\/strong> on the travel sector, according to industry groups.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Monetary_Policy_Under_Review\"><\/span>Monetary Policy Under Review<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Dallas Federal Reserve President <strong>Lorie Logan<\/strong> has called for a timely modernization of the Federal Reserve&#39;s interest rate target system, emphasizing the need to act while markets remain calm. Logan stated that the current fed funds market, while still functional, is becoming increasingly fragile due to a shift towards secured markets. She proposes updating the framework by transitioning to the <strong>tri-party general collateral repo rate<\/strong>, highlighting the repo market as the core of money markets. Logan stressed that this change would be purely technical, not a shift in monetary policy, and some repo rate volatility would be acceptable given the Fed targets a range.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"TikTok_Secures_Key_US_Investors\"><\/span>TikTok Secures Key U.S. Investors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a significant development for the tech sector, <strong>Oracle<\/strong> (<a href=\"\/stock\/ORCL\">ORCL<\/a>), private equity firm <strong>Silver Lake<\/strong>, and <strong>MGX<\/strong> are set to become the main investors in <strong>TikTok&#39;s U.S. operations<\/strong>. These entities will collectively hold a <strong>45% combined ownership<\/strong> in the U.S. entity of the popular video-sharing app. This investment aims to address U.S. national security concerns while maintaining TikTok&#39;s commercial viability.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Standoffs_Intensify\"><\/span>Geopolitical Standoffs Intensify<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Geopolitical tensions remain high as <strong>Russia and China<\/strong> have formally requested a <strong>U.N. Security Council vote<\/strong> on Friday. The draft resolution seeks to <strong>delay the reinstatement of sanctions on Iran by six months<\/strong>, aiming to extend the current pause in sanctions amid ongoing diplomatic efforts. Meanwhile, in Europe, <strong>Denmark&#39;s Defence Intelligence Chief<\/strong> reported that the perpetrators of recent drone incursions remain unknown. However, he noted that these events resemble <em>hybrid warfare patterns<\/em> observed elsewhere and assessed the risk of <strong>Russian sabotage<\/strong> as high.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_Economic_Indicators_Show_Strength\"><\/span>U.S. Economic Indicators Show Strength<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Positive economic news emerged with the <strong>U.S. Q2 GDP<\/strong> being revised upward to a robust <strong>+3.8%<\/strong>, driven by stronger consumption. Following this encouraging data, <strong>Goldman Sachs<\/strong> (<a href=\"\/stock\/GS\">GS<\/a>) has boosted its <strong>Q3 GDP tracking to +2.6%<\/strong>. Additionally, durable goods orders came in above expectations, and initial jobless claims were below expectations, further signaling economic resilience.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Government_Shutdown_Looms_Over_Travel_Sector\"><\/span>Government Shutdown Looms Over Travel Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The prospect of a <strong>partial U.S. government shutdown<\/strong> is casting a shadow over the economy, particularly the travel sector. An industry group warns that such a shutdown would freeze the hiring of air traffic controllers. This disruption could cost the travel sector an estimated <strong>$1 billion weekly<\/strong>, impacting millions of travelers and businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Federal Reserve&#39;s Lorie Logan is advocating for a significant modernization of the interest rate targeting system, proposing a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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