Warren Buffett is stepping down as chairman of Berkshire Hathaway, effective immediately, and his son Howard Buffett will replace him as chairman. Buffett has led Omaha, Nebraska-based Berkshire since 1965, posting a 19.7% compounded annual return, nearly double the return of the S&P 500.
The decision comes a little more than nine months after Greg Abel took over as CEO while Buffett retained the chairmanship. Howard Buffett will replace him as chairman, as dictated by a long-standing succession plan. Howard Buffett, 71, has built his own career outside Berkshire's boardroom, working in investor relations at Archer Daniels Midland and spending 17 years on the Coca-Cola board before retiring from it in 2016.
In his announcement, Buffett said "Father Time always wins" and the time was right to step aside from leading the board after transitioning the CEO role to Greg Abel earlier, noting that "Greg runs the company; Howard will guard its culture and values". Markets received the news quietly, with Berkshire's Class B shares slipping to around $505 on Friday, with the muted reaction partly reflecting how well-telegraphed the transition was.
The Federal Reserve approved its first interest rate hike in more than three years, with the FOMC voting unanimously 12-0 to increase its key interest rate by a quarter percentage point. The committee said in its statement that "Inflation remains elevated". The dot-plot grid of individual officials' expectations indicated that 16 of the 18 participants expected another rate increase.
The BOJ raised its policy rate by 25 basis points to 1.25%, the highest level since 1995, matching expectations and lifting borrowing costs to a 31-year high. The yen fell instead of rising because two board members voted no and Governor Kazuo Ueda made no promise of more hikes. The BOJ said the move was because of a risk that inflation will deviate upward beyond its 2% target.
Axogen has agreed to acquire BioCircuit Technologies for $200 million, announced September 11, 2026. The deal expands the medical device company's portfolio in surgical solutions.
Initial jobless claims fell by 10,000 to 196,000 in the second week of September, the least since mid-July, while continuing claims fell by 39,000 to 1,730,000, the lowest since January 2024. The decline was likely exaggerated by the Labor Day holiday, but the underlying trend points to continued labor market stability and the labor market has regained its poise after wobbling through much of summer.
The average rate on a 30-year fixed-rate mortgage has jumped nearly 100 basis points since the Middle East war started, averaging 6.95% in the latest week, the highest level since January 2025. The National Association of Home Builders blamed deterioration in homebuilder sentiment on rising mortgage rates as well as worsening labor shortages because of an immigration crackdown and higher prices for materials amid import tariffs.
Business applications for July 2026, adjusted for seasonal variation, totaled 578,926, an 8.1% increase over June 2026, with projections of nearly 30,000 new business startups with payroll tax liabilities forming within four quarters. Entrepreneurship is the top wealth-building strategy for 2026, with popular startups including those in the health and wellness sector, AI and automation, and skilled trades and labor.
Small and mid-sized business operators face a squeeze: central bank rate hikes are now underway globally after years of accommodation, pushing up borrowing costs. Mortgage rates have jumped nearly 100 basis points since the Middle East war started, reaching 6.95%, which directly impacts any business planning expansion, equipment purchases, or working capital financing. The housing slowdown ripples through construction, materials, and related service sectors. However, jobless claims fell to 196,000 and continuing claims hit a January 2024 low, signaling that labor supply remains tight and hiring is steady. This creates competing pressures: demand for talent stays strong while capital is getting more expensive.
Business applications in July hit 578,926, up 8.1% from June, with 30,000 new startups projected to form, showing entrepreneurial momentum. But operators should expect higher financing costs on any debt they carry or refinance over the next 12 months. Watch for the Fed's next moves in December; 16 of 18 officials expect another rate increase. For businesses with variable-rate debt or planning capital spending, locking in fixed rates soon may be prudent.