Good Morning! Although sometimes it does not feel like it, summer is actually here! And that also means summer camps! Today we cover a very special summer camp for very special people!

The headlines:

• Is the USA ready for a rate cute 📉 

• A summer camp where business magic happens 🏕️ 

• Something that hurts me personally: higher coffee prices ☕️ 

Enjoy your day!

Nils

INFLATION
Jerome Powel indicates that a rate cut might be coming soon in the USA

What Happened 
In remarks prepared for his appearances before Congress this week, Federal Reserve Chair Jerome Powell expressed concern that holding interest rates too high for too long could jeopardize economic growth. While acknowledging that the economy remains strong and the labor market robust, Powell cautioned that "elevated inflation is not the only risk we face" and that "reducing policy restraint too late or too little could unduly weaken economic activity and employment."

Why It Matters

• Powell's comments come nearly a year after the Fed's last interest rate hike, which brought the overnight borrowing rate to its highest level in 23 years at 5.25%-5.50%.

• Markets expect the Fed to begin cutting rates in September and possibly follow up with another quarter-point reduction by year-end

• The Fed chair's remarks highlight the delicate balancing act the central bank faces in its efforts to tame inflation without causing a recession.

• Powell's testimony before Congress is likely to face scrutiny from lawmakers on both sides of the aisle, with Democrats urging the Fed to lower rates soon to protect jobs and Republicans pressing for continued vigilance against inflation.

What's Next 
Powell delivered his remarks and faced questioning from the Senate Banking Committee on yesterday. Today the House Financial Services Committee will be able to question him. While he is unlikely to make dramatic policy announcements, his responses to questions could provide further insight into the Fed's thinking on the economy and future rate decisions.