Inflation cools;

rate cut likely

The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage for the Fed to begin cutting interest rates in September. Prices rose just 0.1% from May to June, up from the previous month’s unchanged reading. Compared with a year earlier, inflation declined to 2.5% from 2.6%. Excluding volatile food and energy prices, so-called core inflation rose 0.2% from May to June, up from the previous month’s 0.1%. Measured from one year earlier, core prices increased 2.6%, unchanged from June. Taken as a whole, Friday’s figures suggest that the worst streak of inflation in four decades, which peaked two years ago, is nearing an end.

Short seller faces

fraud charge

A federal grand jury in California has charged activist short seller Andrew Left with multiple counts of securities fraud for a $16 million stock market manipulation scheme. The Department of Justice said in a statement on Friday that Left, who was a securities analyst, trader, and guest commentator on television channels including CNBC and Fox Business, is charged with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. Separately, the Securities and Exchange Commission said that it is charging Left and Citron in what they said was a $20 million fraud scheme that used “bait and switch” tactics to mislead investors.

Annual GDP

jumps 2.8% 

The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. The gross domestic product picked up in the April-June quarter after growing at a 1.4% pace in the January-March period. Economists had expected a weaker 1.9% annual pace of growth. The GDP report also showed that inflation continues to ease, though still remaining above the Federal Reserve’s 2% target. The latest figures should reinforce confidence that the U.S. economy is on the verge of achieving a rare “soft landing,” whereby high interest rates, engineered by the Fed, tame inflation without tipping the economy into a recession.

Catering workers

threaten strike

Airline catering workers are threatening to go on strike next week if they don’t get pay raises and better health insurance. Those are the workers who prepare meals and deliver drinks and snacks to airplanes at about 30 U.S. airports. Unions representing the workers said Friday that they could go on strike as early as Tuesday morning if they don’t have a better contract offer from Gategourmet, a subsidiary of a Swiss company. The catering company says it has made an “industry-leading offer” that includes wage and health care improvements.

— Bulletin wire reports