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    Inflation on the rise, Grijalva wins in Arizona, and a credit check change

     
    Today's economy story

    US inflation jumps as Trump tariffs 'bite'

    What happened
    Consumer prices rose 0.3% in June, according to Labor Department data released yesterday, pushing the annual inflation rate to 2.7%. That's the highest rate since February.

    Imported items saw some of the steepest price hikes. The cost of appliances, for example, jumped 1.9%, the biggest monthly rise since the Covid-19 pandemic in 2020.

    Who said what
    While the inflation numbers aren't "as bad as expected," they suggest that President Donald Trump's import tariffs are "starting to bite," Heather Long, chief economist at Navy Federal Credit Union, told CNN. "A long stretch when Trump's policies left little imprint on the hard data appears to be ending," said The Wall Street Journal.

    Shortly after the report was released, Trump posted on Truth Social that the Federal Reserve should cut interest rates "NOW!!!" But the new data will likely undermine Trump's "massive pressure campaign" on Fed Chair Jerome Powell, said Politico. The report deals a "knock-out punch to the tariff inflation deniers," Samuel Tombs of Pantheon Macroeconomics said in a note to clients.

    What next?
    Price pressures could "intensify over the coming months," said The New York Times, especially if Trump's threatened tariffs on the European Union and other countries come into effect on August 1. A decision about whether to cut interest rates will come after the next Fed meeting at the end of July.

     
     
    Today's Politics story

    Grijalva wins Democratic  special primary for Arizona

    What happened
    Adelita Grijalva has become the Democratic nominee for Arizona's 7th Congressional District, taking more than 60% of the votes. She will go on to face Republican nominee Daniel Butierez in the race to fill the House seat vacated by her late father, Rep. Raúl Grijalva.

    The 54-year-old Grijalva beat out four other candidates, including the 25-year-old Gen Z activist Deja Foxx, who "ran on a platform of generational change and challenging the old guard," said The Washington Post.

    Who said what
    Grijalva said her success was a win for "the progressive movement my dad started in Southern Arizona more than 50 years ago."

    The race had been considered a test for a Democratic Party "grappling with generational tensions within its ranks," said The Hill. When faced with a choice between continuity and generational change, "voters decided to stick with what they knew," said The New York Times. 

    What next?
    Grijalva is "all but guaranteed" to beat Butierez in the September 23 special election, said the Times. She would become Arizona's first Latina congressional representative.

     
     
    Today's personal finance Story

    Judge nixes wiping medical debt from credit checks 

    What happened
    A Texas judge yesterday ruled that medical debt can be included in credit reports, potentially making it harder for many people to secure mortgages or other loans.

    The ruling vacated a policy announced during the Biden presidency (pictured above) that would have removed nearly $50 billion in medical bills from credit reports of some 15 million people, said CNN. The judge found that the policy overstepped the Consumer Financial Protection Bureau's legal authority.

    Who said what
    "Every major substantive provision" of the Biden-era policy exceeded the CPFB's mandate, said Texas Eastern District Court Judge Sean Jordan, who was nominated to his seat by President Donald Trump in 2019.

    Removing medical debt from credit reports was expected to "increase the credit scores of millions of families by an average of 20 points," said The Associated Press. Republicans had "voiced opposition" to the policy "soon after it was proposed last August," claiming that it could "undermine underwriting processes" and "increase risk in the financial system," said CNN.

    What next?
    The ruling likely makes it harder for some people to get a loan, said Fortune. It also comes after the Trump administration ordered a series of dramatic cuts to CFPB operations earlier this year, said the AP, "effectively shutting it down." 

     
     

    It's not all bad

    A seven-year-old girl with a form of congenital deafness regained nearly all of her hearing after receiving a new gene therapy, according to a study published in the journal Nature Medicine. As part of a clinical trial, the girl and nine other patients had a copy of the OTOF, or otoferlin, gene, which is crucial for hearing, injected into their inner ears. All of them reported improved hearing within a month, said The Independent, with "considerable" improvement after six months.

     
     
    Under the radar

    Melting glaciers may cause more volcanic eruptions

    Climate change could lead to an increase in volcanic eruptions, according to a new study presented at the Goldschmidt Conference in Prague and set to be peer reviewed later this year. Rapidly warming temperatures are causing glaciers to melt, unearthing hidden volcanoes. "Hundreds of dormant subglacial volcanoes worldwide, particularly in Antarctica," could become "more active as climate change accelerates glacier retreat," said a release about the study.

    The "thick ice caps act as lids on volcanoes," said Inside Climate News. But once that weight is removed, there's no longer pressure on the magma chamber underneath, allowing for eruptions to occur. "When you take the load off, it's just like opening a Champagne bottle," Brad Singer, a geoscientist at the University of Wisconsin, said to Inside Climate News. 

    Increased volcanic activity will have detrimental effects on the global ecosystem. The cumulative effect of "multiple eruptions can contribute to long-term global warming because of a buildup of greenhouse gases," said Pablo Moreno-Yaeger, who presented the research at the conference. "This creates a positive feedback loop, in which melting glaciers trigger eruptions" and the eruptions "contribute to further warming and melting."

    The world's glaciers are now melting faster than ever before. Over the past 10 years, "glacier losses were more than a third higher than during the period 2000-2011," said the BBC. Eruptions also "release sulfate aerosols that reflect sunlight back into space," said Live Science. This has led to "cooling events following past eruptions, some of which have triggered major famines."

     
     
    On this day

    July 16, 1951

    J.D. Salinger's book "The Catcher in the Rye" was first published. It was his only novel and followed protagonist Holden Caulfield in a coming-of-age tale. The work remains one of the most famous books in American literature and is still widely read by high school students. 

     
     
    TODAY'S newspaperS

    Trump's Kyiv 'leap'

    Donald Trump's "leap to Kyiv's side" means many Republicans are also "rushing to shift their stance," says The New York Times. But the "GOP's rift" on Jeffrey Epstein is continuing to "widen," says The Washington Post, with "unprecedented division" on the issue among the party base.
    Trump's "campaign to dismantle" the Department of Education is going more smoothly, after he was given the "OK for 1,300 layoffs," says USA Today.

    ► See the newspaper front pages

     
     
    Tall tale

    Hitching a ride

    A prisoner broke out of an overcrowded jail in Corbas, France, by hiding in the laundry bag of a cellmate who was being released. A "series of serious dysfunctions" led to the 20-year-old slipping out unnoticed, said Sébastien Cauwel, France's national prison chief. The escapee was captured and arrested near Lyon on Monday, after 24 hours on the run. 

     
     

    Morning Report was written and edited by Nadia Croes, Catherine Garcia, Jessica Hullinger, Anya Jaremko-Greenwold, Justin Klawans, Summer Meza, Chas Newkey-Burden, Devika Rao, Rafi Schwartz and Helen Brown, with illustrations by Stephen Kelly.

    Image credits, from top: Chip Somodevilla / Getty Images; Rebecca Noble / Getty Images; Anna Moneymaker / Getty Images; Illustration by Stephen Kelly / Getty Images
     

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