Inflation Hits

• Eurozone inflation rose to 2.9% in July, though price pressures varied significantly across different member states. • The Netherlands saw the sharpest monthly increase at 1.5%, followed by Germany (+0.9%) and France (+0.6%), while Greece (-1.4%) and Italy (-1.0%) experienced the steepest price drops. • These divergent trends highlight the uneven economic recovery and varying cost-of-living pressures within the currency bloc.

• Eurozone inflation rose to 2.9% in July, though price pressures varied significantly across different member states. • The Netherlands experienced the sharpest monthly increase at 1.5%, followed by Germany at 0.9% and France at 0.6%. • Conversely, Greece saw the most significant price drop at -1.4%, with Italy and Latvia also recording declines of -1.0% and -0.7% respectively.

• New Federal Reserve Chair Kevin Warsh presided over his first FOMC meeting, where the committee unanimously decided to keep interest rates unchanged at 3.5%-3.75%. • The decision comes as inflation has reached 4.2%, prompting Warsh to issue a clear pledge to prioritize price stability over political pressure for rate cuts. • Despite inflation concerns, the U.S. economy shows strength with the S&P 500 hitting record highs, strong jobs reports, and continued investment in artificial intelligence.