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Inflation Cools, But Fed Holds Rates Steady
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Good morning and happy Thursday. A rare white buffalo has reportedly been born in Yellowstone National Park -- a sign, according to the legend of the Lakota Tribe, that better days are coming -- but only if humans take action. Have a great day.
In Today’s Brief
House: Garland contempt vote
G7: AI, wars headline summit
Nevada: Endorsement dustup
Tesla: Musk pay decision
Jerry West: NBA legend dies
... and more
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Top Tips
1) Not yet
New inflation numbers were good, but not good enough to move the Federal Reserve.
Latest figures: May's Consumer Price Index was flat MoM and was up 3.3% YoY, according to the Labor Department. Both numbers came in 0.1% below analysts' projections, suggesting inflation is beginning to cool. Core CPI -- excluding food and energy prices -- was up 0.2% MoM and 3.5% YoY, also beating expectations.
Staying put: The Federal Reserve held interest rates steady yet again and is now forecasting only one cut this year after previously predicting three. Fed Chairman Jerome Powell said the central bank's policy appears to be impacting inflation and moving toward the 2% goal, but it is not ready to cut rates. Powell added there is no current thought in raising rates.
Big picture: Major indexes closed mixed (Dow -0.09%, Nasdaq +1.53%, S&P 500 +0.85%) on what the Fed called "modest" progress. Analysts are now predicting a September cut. But the longer the Fed waits, and the closer it gets to the presidential election, the more political headwinds it stands to face. Senate Democrats have already called on Powell to cut rates and both the Canadian and European Central Banks have already done so.
2) Click and travel
Americans can now renew their passport at home, but patience will likely be required.
The news: A State Department beta program allowing public online passport renewal launched yesterday. President Joe Biden announced plans for the system in 2021 for a 2022 start before delays; over 500K applications were processed in earlier testing.
How it will work: There will be a daily limit on applications to track and address issues. The threshold will gradually increase over time. Government officials said online renewals will take about as long as the traditional by-mail process to start, but wait times will eventually come down. It is not clear how long the beta stage will last.
Keep in mind: There are eligibility requirements to renew online, including age, current residency, timeframe of passport issuance and biographic data. Also: You cannot plan to leave the country for at least eight weeks when you file for renewal and -- this is a big one -- your current passport is canceled once you submit your application.
3) We build this city?
A billionaire-backed plan to build a new metropolis in Northern California cleared a big hurdle.
The news: California Forever has secured enough signatures to go before Solano County voters in November. The project -- which aims to construct a sustainable, walkable city that houses 400K -- could head straight to the ballot, but it is more likely government officials will call for an impact study before it goes to voters.
The backstory: California Forever has quietly bought $800M of farmland in recent years to house a city between Sacramento and San Francisco that, the company claims, will provide affordable housing and other benefits. Wealthy investors like philanthropist Laurene Powell Jobs and venture capitalist Marc Andreessen back the venture. But it has met significant pushback. The company has sued farmers who declined to sell land and the entire project would require zoning law changes, among other challenges.
Big picture: The idea remains a longshot, even with the ballot access victory. Lawmakers say existing infrastructure, such as roads and water access, would not support a large city. Conservation groups oppose the plan. The proposed city site is also close to an Air Force base.
Quick Tips
U.S. News
The House voted to hold Attorney General Merrick Garland in contempt of Congress. The vote was 217-206 on party lines after Garland declined to release tapes of President Biden’s interview with Special Counsel Robert Hur (More)
The survivors of the Sandy Hook Elementary shooting graduated from high school yesterday. Sixty of Newtown High's 330 seniors were in first grade in 2012 when 20 classmates and six teachers were killed at the Connecticut school (More)
It will cost at least $1.7B to rebuild Baltimore's Francis Scott Key Bridge, according to a Department of Transportation estimate. Workers are still clearing debris after a cargo ship crashed into and collapsed the bridge in March (More)
World News
The annual G7 Summit begins today in Puglia, Italy. The Russia-Ukraine and Gaza wars will be among the top issues discussed; Pope Francis will attend to participate in talks on artificial intelligence ethics (More)
Secretary of State Antony Blinken said Hamas' response to a U.S.-backed Gaza ceasefire proposal included changes that may not be possible. The top diplomat said an agreement could take time; Blinken indicated Israel will agree to the current deal (More)
Over 80 people died after a boat capsized in the Democratic Republic of the Congo. President Felix Tshisekedi has called for an investigation; boat accidents are common in the African country due to overloaded vessels (More)
Campaign News
Failed Nevada Senate candidate Jeff Gunter accused former President Donald Trump of effectively selling his endorsement to rival Sam Brown, who won the state's Republican primary. The National Republican Senatorial Committee said the allegations were false and defamatory (More)
The White House would not rule out President Biden commuting Hunter Biden's sentence after his conviction on federal gun charges. Press Secretary Karine Jean-Pierre declined comment; the president previously said he would not pardon his son (More)
Trump will speak before close to 100 top CEOs at an event in Washington today. Former Trump Administration official and Fox Business host Larry Kudlow will moderate; White House Chief of Staff Jeff Zients will attend to represent Biden (More)
Business & Markets
Tesla shareholders' vote on reinstating CEO Elon Musk's $56B pay package will come down today. A Delaware judge tossed it earlier this year; Musk is also trying to move the electric vehicle manufacturer to Texas (More)
Coach USA has filed for bankruptcy protection. The company operates Megabus and other commuter bus lines in the U.S. and Canada; operations will continue as normal as it reorganizes (More)
Competition and tech watchdog groups want the Department of Justice to investigate YouTube. They argue the streaming platform could allow parent company Alphabet, which also owns Google, to dominate home entertainment (More)
Entertainment & Sports
NBA legend Jerry West died at 86. The Basketball Hall of Famer was a 14-time All-Star with the Los Angeles Lakers, winning one championship as a player before winning eight more as an executive - six with the Lakers and two with the Golden State Warriors; he is largely considered the inspiration for the league's logo (More)
Sony has acquired Alamo Drafthouse Cinema. The theater chain is known for extensive food and drink offerings and strict rules against talking and texting during movies (More)
The United States Golf Association may make it easier for LIV Golf players to qualify for the U.S. Open. The organization is considering creating a new exemption category to boost competitors on the breakaway circuit (More)
Quick Hitters
Fun Stuff: A dog was determined to find the perfect toy to convince a tortoise to play. The video is fantastic.
New Idea: Cement is one of the most commonly used construction materials worldwide. Researchers at Massachusetts Institute of Technology believe it can be harnessed to store clean energy and turn homes into batteries.
Go Deep: Sibling birth order can determine a lot about how your life unfolds. But there are limits to what it can explain.
Wise Words: Tennis great Roger Federer delivered a commencement address at Dartmouth College. Here are the three lessons the 20-time major tournament said he learned from his sport.
Life Hack: Being vigilant about turning the lights off every time you leave a room may cost you money, not save it. It sounds counterintuitive, but here is a smart explanation of why it may make sense to leave them on.
OPTIMIZE ME: Researchers “found convincing evidence that higher intake of ultra-processed foods was associated with 50% increased risk of cardiovascular disease-related death, a 48% to 53% higher risk of anxiety and common mental disorders, and a 12% greater risk of type 2 diabetes.”
Want more health and wellness news? Subscribe to our brand new newsletter, Optimize Me, and start living a healthier life through diet, exercise, sleep, and mindfulness:
Watch This
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Looking Ahead …
If you are planning to visit Lake Tahoe this summer, you may need to get some paperwork in order. Sand Harbor State Park will require day-use reservations on weekends and holidays starting in mid-August to ease overcrowding.
Question of the Day
Do you plan to try online U.S. passport renewal?Choose one ... |
Yesterday’s results:
Have the Biden and Trump convictions impacted your outlook on the presidential election?
No (83%)
Yes (14%)
Only the other pending cases could have an impact (3%)