ECONOMYDEVELOPING08/16/26

August Consumer Sentiment Drop

University of Michigan consumer sentiment fell 8% in early August, ending two months of gains.

DEVELOPING STORYWHAT CHANGED

DEVELOPING TIMELINE

Aug 16: Sentiment fell 8%, index hit 51

DIFFERENT FOCUS

Washington Examiner Business emphasized Iran War Uncertainty

LEFT FOCUS

▸Axios noted sentiment remains above spring lows when gasoline prices were soaring. — Axios

RIGHT FOCUS

▸Washington Examiner reported sentiment is down 12.4% from a year ago. — Washington Examiner Business
▸Washington Examiner noted only 8% of consumers expect income growth to outpace inflation, down from 18% in December 2024. — Washington Examiner Business
▸Washington Examiner framed the drop as driven by uncertainty about the Iran war. — Washington Examiner Business

September CPI Hits 3.7%

September consumer prices rose 0.6% monthly and 3.7% annually, the fastest pace in five months.

DEVELOPING TIMELINE

First Report Oct 14: Economists expect September consumer prices to rise 0.6% monthly and 3.6% year-over-year, driven by energy costs.

Thursday: September CPI confirmed at 3.7% annually, up from 3.6% prior

Left: Rising prices squeeze everyday Americans hardest.

Right: Inflation surge spells trouble for Trump, GOP.

Inflation rose to 3.7% in September, the last CPI report before midterm elections.

DEVELOPING TIMELINE

First Report Oct 14: Economists expect September consumer prices to rise 0.6% monthly and 3.6% year-over-year, driven by energy costs.

Sunday: September CPI report confirms 3.7% annual inflation rate

Left: Prices hit everyday Americans on essentials.

Right: Rising prices spell trouble for Trump's party.

Treasury Department fined Bank of America over $1.2 billion for sanctions and anti-money laundering violations

DEVELOPING TIMELINE

First Report Thursday: The US Treasury fined Bank of America $1.2 billion for anti-money laundering and sanctions violations.

Sunday: Treasury fine now cites Chinese money laundering networks

Left: Third-largest Treasury penalty ever imposed.

Right: Tied to Chinese networks and border criminals.

Trump signs executive order waiving Russia sanctions and tariffs mandated by the Graham Act.

Left: Sanctions targeting Russia's Ukraine war dropped early

Right: Graham Act halted in name of national interest