The Federal Reserve (Fed), as expected, maintained its target for fed funds rates at 5.25%-5.50% for the eighth consecutive time on Wednesday. However, its chairman, Jerome Powell, emphasised that the first rate cut was getting closer. Here are the main takeaways from this meeting:

1. No decision has been made regarding a rate cut in September.
2. The committee remains attentive to the risks on both sides of the Fed’s dual mandate (2% inflation and full employment).
3. The Fed will assess the upcoming macroeconomic data before making a decision on rates.
4. Second-quarter inflation figures have bolstered confidence that the inflation rate is moving in the right direction.
5. A rate cut that is too late could unduly weaken the economy.
6. The Fed needs to further strengthen its confidence level regarding inflation.

Eurozone inflation rose to 2.6% in July, surpassing analysts’ expectations. Core inflation remained stable at 2.9%.
The July increase is mainly due to higher prices for services, energy (which no longer has a deflationary effect), and food, which likely reached its lowest point.
The most concerning aspect for the ECB is that the inflation rate for services, the most representative component of the domestic economy, has been stuck at around 4% for nine months and appears to be trending in the wrong direction.
July’s figures complicate the ECB’s task as it considers another rate cut in September. Markets still estimate a 96% probability of a further 25 basis point reduction by the ECB at the next meeting.

As shown in this chart from Bank of America (based on historical performance of the S&P 500 since 1928), September is simply the worst month of the year with an average performance of -13.5%...

The difference between the MEDIAN (in red) and the AVERAGE (in green) cumulative performance of US equities since 1926 is staggering... In fact, the average performance of stocks over the last 100 years has been heavily influenced by a very small number of stocks (4% of the index). Statistically, it is nearly impossible to outperform an index over time, as one would need to specifically hold this very small percentage of stocks that have beaten the index, while also avoiding the vast majority of stocks that have underperformed the index.

Since 2020, the United States has increased its federal debt by approximately $12 trillion. In other words, the U.S. has added $280 billion in federal debt EACH MONTH since January 2020. This means the U.S. now has about $105,000 of federal debt per capita.

According to a study by Bank of America, it seems that corporate adoption of AI is still relatively low.

According to recent data, only 5% of US companies are currently using AI. This figure is comparable to other reports indicating that AI use is still in its infancy for many companies.

However, the adoption rate is set to rise as more companies recognise the potential benefits of AI, such as improved productivity, reduced costs and better decision-making.

As shown by data compiled by Olympedia, the United States has won the most medals in the Summer Olympics since 1896. American athletes have won a total of 2,655 medals - 1,070 gold, 841 silver, and 744 bronze.