Fed Chairman Warsh pledges inflation control amid banking strength and rising business cost pressures, while inflation eases to 3.5% but companies warn tariffs and AI demand could sustain price pressures.

Fed Chairman Kevin Warsh, in his first Congressional testimony, reiterated the Fed's commitment to reducing inflation but did not specify whether he supports higher interest rates, instead establishing five task forces focused on key monetary policy topics.

Inflation slowed to a 3.5% annual increase in June with prices marking their biggest month-over-month drop since 2020, driven primarily by falling energy costs following the pause in U.S.-Iran conflict.

Major U.S. banks posted record earnings results despite geopolitical uncertainties, though executives warn of 'tectonic' risks ahead including potential renewed conflicts affecting economic stability.

Wage growth in June outpaced inflation for the first time in months, raising hopes that consumers may finally feel relief from purchasing power pressures after April-May slowdowns.

Businesses are bracing for sustained inflation above the Fed's 2% target due to tariffs, elevated energy prices, and surging demand from AI data centers, with companies warning costs could remain elevated for months.

Paramount's planned takeover of Warner Bros. Discovery faces potential state-level antitrust challenges, underscoring a broader trend of states taking more active roles in merger regulation alongside federal authorities.

AI-focused drug discovery startup Chai Discovery raised $400 million at a $3.8 billion valuation, reflecting strong investor confidence in artificial intelligence applications for pharmaceutical development.

New York State enacted the first statewide data center moratorium for one year, pausing construction to address power grid and environmental challenges from massive AI computing facilities.

Global oil prices surged to their largest two-day gain since mid-March, driven by ongoing U.S.-Iran tensions and disruptions related to Strait of Hormuz shipping corridors vital to global energy markets.

DeepSeek, a Chinese AI company, is reportedly in talks to raise $1.5 billion before pursuing an IPO, while DeepMind's CEO calls for an independent standards body to regulate frontier artificial intelligence development.